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Liquidity constraints of the middle class

Campbell, Jeffrey R.; Hercowitz, Zvi - 2009

The consumption of households with liquid financial assets responds much more to transitory income shocks than the … thereby shortens its effective horizon. Intertemporal substitution over a limited period generates a strong consumption … accumulates assets. Hence, households with more assets have larger consumption responses. We compare a calibrated version of the …

Persistent link: https://www.econbiz.de/10010292143

Household Expenditure and the Income Tax Rebates of 2001

Johnson, David S.; Parker, Jonathan A.; Souleles, … - 2004

Consumer Expenditure Survey, we exploit this historically unique experiment to measure the change in consumption expenditures … consumption demand are significant. The estimated responses are largest for households with relatively low liquid wealth and low …

Persistent link: https://www.econbiz.de/10010263339

The reaction of consumer spending and debt to tax rebates: Evidence from consumer credit data

Agarwal, Sumit; Liu, Chunlin; Souleles, Nicholas S. - 2007

We use a new panel dataset of credit card accounts to analyze how consumers responded to the 2001 federal income tax rebates. We estimate the monthly response of credit card payments, spending, and debt, exploiting the unique, randomized timing of the rebate disbursement. We find that on average...

Persistent link: https://www.econbiz.de/10010292101

The reaction of consumer spending and debt to tax rebates: Evidence from consumer credit data

Lusardi, Annamaria; Mitchell, Olivia S. - 2007

We use a new panel dataset of credit card accounts to analyze how consumer responded to the 2001 Federal income tax rebates. We estimate the monthly response of credit card payments, spending, and debt, exploiting the unique, randomized timing of the rebate disbursement. We find that, on...

Persistent link: https://www.econbiz.de/10010298384

Stimulus through insurance: The marginal propensity to repay debt

Kosar, Gizem; Melcangi, Davide; Pilossoph, Laura; … - 2024

consumption for longer. …

Persistent link: https://www.econbiz.de/10015189308

Stimulus through Insurance: The Marginal Propensity to Repay Debt

Koşar, Gizem; Melcangi, Davide; Pilossoph, Laura; … - 2023

aggregate consumption for longer. …

Persistent link: https://www.econbiz.de/10014377472

Stimulus through insurance: The marginal propensity to repay debt

Koşar, Gizem; Melcangi, Davide; Pilossoph, Laura; … - 2023

consumption for longer. …

Persistent link: https://www.econbiz.de/10014480691

Latent heterogeneity in the marginal propensity to consume

Lewis, Daniel J.; Melcangi, Davide; Pilossoph, Laura - 2024

We estimate the unconditional distribution of the marginal propensity to consume (MPC) using clustering regression applied to the 2008 economic stimulus payments. By deviating from the standard approach of estimating MPC heterogeneity using interactions with observables, we can recover the full...

Persistent link: https://www.econbiz.de/10014581768

Habits, sentiment and predictable income in the dynamics of aggregate consumption

Sommer, Martin - 2001

standard permanent income model with intertemporally separable utility: the sensitivity of consumption to lagged consumer … sentiment and to predictable changes in current income I show that in a habit formation model the sensitivity of consumption … growth to predicted income can be to a large extent reinterpreted as a sluggish response of consumption to news Moreover the …

Persistent link: https://www.econbiz.de/10010293449

What would you do with $500? Spending responses to gains, losses, news, and loans

Fuster, Andreas; Kaplan, Greg; Zafar, Basit - 2018

distinguishing between consumption theories. Asking households about their intended spending under various scenarios, we find that 1 …

Persistent link: https://www.econbiz.de/10011942788