Foundational research in behavioral economics and consumer psychology has revealed a great deal about the psychology of budgeting. However, very little is known about the extent to which budgets do (or do not) influence spending in the wild. The present research addresses this gap in the...

Using a heterogeneous agent model calibrated to match measured spending dynamics over four years following an income shock (Fagereng, Holm, and Natvik (2021)), we assess the effectiveness of three fiscal stimulus policies employed during recent recessions. Unemployment insurance (UI) extensions...

Governments use consumer incentives to promote green technologies (e.g., solar panels and electric vehicles). Our goal in this paper is to study how policy adjustments over time will interact with production decisions from the industry. We model the interaction between a government and an...