Fiscal Stimulus and Households' Non-Durable Consumption Expenditures: Evidence from the 2009 Australian Nation Building and Jobs Plan

Emma Aisbett, Markus Brueckner, Ralf Steinhauser and Rhett Wilcox
Authors registered in the RePEc Author Service: Markus Brueckner

No 689, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University

Abstract: In 2009 the Australian government delivered approximately $8 billion in direct payments to households. These payments were preannounced and randomly allocated to households based on postal codes over a 5-week period. We exploit this random allocation to estimate the causal response of households' non-durable consumption expenditures to a transitory, anticipated income increase. Our main findings are that: (i) non-durable consumption expenditures did not react significantly during or after the one-time, pre-announced transfer; (ii) there is a small, albeit statistically significant increase in non-durable consumption expenditures at the time of the announcement of the fiscal stimulus.

Keywords: Fiscal Stimulus; Randomization; Transitory Income; Anticipation; Excess Sensitivity; Rational Expectations Permanent Income (search for similar items in EconPapers)
JEL-codes: D91 E21 E62 H31 (search for similar items in EconPapers)
Date: 2013-12
References: Add references at CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Fiscal Stimulus and Households' Non-Durable Consumption Expenditures: Evidence from the 2009 Australian Nation Building and Jobs Plan (2017)
Working Paper: Fiscal Stimulus and HouseholdsÕ Non-Durable Consumption Expenditures: Evidence from the 2009 Australian Nation Building and Jobs Plan (2014)
Working Paper: Fiscal Stimulus and Households' Non-Durable Consumption Expendituresː Evidence from the 2009 Australian Nation Building and Jobs Plan (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:auu:dpaper:689

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