HOUSEHOLD DEBT AND THE EFFECTS OF FISCAL POLICY

• 成果类型: Article
• 署名作者: Alpanda, Sami; Song, Melissa Hyunji; Zubairy, Sarah
• 署名单位: State University System of Florida; University of Central Florida; University of Sydney; Texas A&M University System; Texas A&M University College Station; National Bureau of Economic Research; University of Sydney
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12702
• 发表日期: 2024
• 页码: 1877-1909
• 关键词: monetary-policy; business cycles; GOVERNMENT; consumption; prices; multipliers; constraints; indebtedness; shocks

摘要

We examine how the effects of government spending shocks depend on the balance sheet position of households. Employing U.S. household survey data, we find a large, positive consumption response for households with mortgage debt, smaller response for renters, and an insignificant response for outright homeowners, in response to a positive government spending shock. We consider a model with three types of households and show that it can successfully account for these findings. Liquidity constraints and wealth effects play a crucial role in shock propagation. Our findings suggest the importance of household mortgage debt position in the transmission mechanism of fiscal policy.