The Economic Stimulus Payments of 2008 and the Aggregate Demand for Consumption / Christian Broda, Jonathan A. Parker.

Format:

Book

Author/Creator:

Broda, Christian.

Contributor:

National Bureau of Economic Research.

Parker, Jonathan A.

Series:

Working Paper Series (National Bureau of Economic Research) no. w20122.

NBER working paper series no. w20122

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2014.

Summary:

Using a survey of households in the Nielsen Consumer Panel and the randomized timing of disbursement of the 2008 Economic Stimulus Payments, we find that a household's spending rose by ten percent the week it received a Payment and remained high cumulating to 1.5-3.8 percent of spending over three months. Our estimates imply partial-equilibrium increases in aggregate demand of 1.3 percent of consumption in the second quarter of 2008 and 0.6 percent in the third. Spending is concentrated among households with low wealth or low past income; a household's spending did not increase significantly when it learned about its Payment.

Notes:

Print version record

May 2014.