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

• 成果类型: Article
• 署名作者: Agarwal, Sumit; Liu, Chunlin; Souleles, Nicholas S.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Chicago; Nevada System of Higher Education (NSHE); University of Nevada Reno; University of Pennsylvania; National Bureau of Economic Research
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/528721
• 发表日期: 2007
• 页码: 986-1019
• 关键词: anticipated income changes; household consumption; windfall income; expenditure

摘要

We use a new panel data set 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, consumers initially saved some of the rebate, by increasing their credit card payments and thereby paying down debt. But soon afterward their spending increased, counter to the permanent income model. Spending rose most for consumers who were initially most likely to be liquidity constrained, whereas debt declined most (so saving rose most) for unconstrained consumers.