Asymmetric Consumption Smoothing

• 成果类型: Article
• 署名作者: Baugh, Brian; Ben-David, Itzhak; Park, Hoonsuk; Parker, Jonathan A.
• 署名单位: University of Nebraska System; University of Nebraska Lincoln; University System of Ohio; Ohio State University; National Bureau of Economic Research; University of Melbourne; Massachusetts Institute of Technology (MIT)
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer20181735
• 发表日期: 2021
• 页码: 192-230
• 关键词: liquidity constraints; household consumption; debt response; income; savings

摘要

Analyzing account-level data from an account aggregator, we find that households increase consumption when they receive expected tax refunds, as if they face liquidity constraints. However, these same households smooth consumption when making payments in other years, primarily by transferring funds among liquid accounts. Even households carrying credit card debt smooth consumption when making payments, and even highly liquid households spend out of refunds. This behavior is inconsistent with pure liquidity constraints or hand-to-mouth behavior and is most consistent with a mental accounting life-cycle model.