The Effect of Sales-Tax Holidays on Consumer Spending

Aditya Aladangady, Shifrah Aron-Dine, Wendy E. Dunn, Laura Feiveson, Paul Lengermann and Claudia Sahm
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Wendy E. Dunn: https://www.federalreserve.gov/econres/wendy-e-dunn.htm
Laura Feiveson: https://www.federalreserve.gov/econres/laura-j-feiveson.htm
Paul Lengermann: https://www.federalreserve.gov/econres/paul-lengermann.htm

No 2017-03-24, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Over the past decade, many U.S. states have enacted policies that temporarily exempt consumer purchases of certain goods from state sales taxes. In this note, we investigate whether the pre-announced sales-tax holidays noticeably alter the spending behavior of consumers. Specifically, we investigate whether there are shifts in the level and/or composition of consumer spending before, during, and after these sales-tax holidays.

Date: 2017-03-24
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2017-03-24

DOI: 10.17016/2380-7172.1941

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