How effective is the 2020 stimulus check in Minnesota and Wisconsin counties?

Rubana Mahjabeen () and Praopan Pratoomchat ()
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Rubana Mahjabeen: University of Wisconsin-Superior
Praopan Pratoomchat: University of Wisconsin-Superior

Economics Bulletin, 2021, vol. 41, issue 3, 1655-1665

Abstract: This study estimates the multiplier impact of the first round of stimulus checks provided under the CARES Act 2020. Data was collected through a phone and online survey of individuals in 25 counties of Minnesota and Wisconsin. Survey data is utilized to compute the average marginal propensity to save and the multiplier. The results demonstrate a statistically significant difference between the location-specific multipliers and income-specific multipliers of Minnesota and Wisconsin. Counties with smaller towns have a higher multiplier impact (2.98) compared to counties with larger cities (2.24), and lower-income individuals create a larger multiplier impact (3.17) as opposed to higher-income individuals (2.00). The study finds that the gender-specific multipliers are not statistically different.

Keywords: Saving; Consumption; Multiplier; Household Economics (search for similar items in EconPapers)
JEL-codes: E2 H3 (search for similar items in EconPapers)
Date: 2021-09-17
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Citations: View citations in EconPapers (1)

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