The Economic Stimulus Payments of 2008 and the aggregate demand for consumption
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Parker_The economic.pdf
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Author(s)
Broda, Christian
Parker, Jonathan A.
Date Issued
September 2014
Journal
Journal of Monetary Economics
Publisher
Elsevier
Citation
Broda, Christian, and Jonathan A. Parker. “The Economic Stimulus Payments of 2008 and the Aggregate Demand for Consumption.” Journal of Monetary Economics 68 (December 2014): S20–36.
Version
Author's final manuscript
Abstract
Households in the Nielsen Consumer Panel were surveyed about their 2008 Economic Stimulus Payment. In estimates identified by the randomized timing of disbursement, the average household׳s spending rose by 10 percent the week it received a Payment and remained high cumulating to 1.5–3.8 percent of spending over three months. These 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.
MIT Department
Sloan School of Management
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Creative Commons Attribution-Noncommercial-Share Alike
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DOI of Published Version
https://doi.org/10.1016/j.jmoneco.2014.09.002
