{"id":672,"date":"2017-10-01T01:29:51","date_gmt":"2017-10-01T01:29:51","guid":{"rendered":"http:\/\/mitmgmtfaculty.mit.edu\/japarker\/?page_id=672"},"modified":"2025-02-20T18:32:50","modified_gmt":"2025-02-20T18:32:50","slug":"household-expenditures","status":"publish","type":"page","link":"https:\/\/mitmgmtfaculty.mit.edu\/japarker\/household-expenditures\/","title":{"rendered":"Summary: Household Expenditure and the Income Tax Rebates of 2001"},"content":{"rendered":"<div id=\"pl-672\"  class=\"panel-layout\" ><div id=\"pg-672-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-672-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-672-0-0-0\" class=\"so-panel widget widget_mit-pf-wysiwyg widget_mit_pf_wysiwyg panel-first-child panel-last-child\" data-index=\"0\" ><div class=\"textwidget\"><h2>Household Expenditure and the Income Tax Rebates of 2001<\/h2>\n<em>American Economic Review,<\/em> 96(5), December 2006, 1589-1610. with D. Johnson and N. Souleles\n\nUsing questions expressly added to the Consumer Expenditure Survey, we estimate the change in consumption expenditures caused by the 2001 federal income tax rebates and test the permanent income hypothesis. We exploit the unique, randomized timing of rebate receipt across households. Households spent 20 to 40 percent of their rebates on nondurable goods during the three-month period in which their rebates arrived, and roughly two-thirds of their rebates cumulatively during this period and the subsequent three-month period. The implied effects on aggregate consumption demand are substantial. Consistent with liquidity constraints, responses are larger for households with low liquid wealth or low income.\n\nHere is paper from the\u00a0<b><a href=\"http:\/\/doi.org\/10.1257\/aer.96.5.1589\" target=\"_blank\" rel=\"noopener noreferrer\">AER<\/a>.<\/b>\n\nHere is the\u00a0<b><a href=\"http:\/\/www.nber.org\/papers\/w10784\" target=\"_blank\" rel=\"noopener noreferrer\">September 2004 NBER working paper version<\/a>.<\/b>\n\nHere is a version from <a href=\"http:\/\/mitsloan.mit.edu\/shared\/ods\/documents\/?DocumentID=4173\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.<\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Household Expenditure and the Income Tax Rebates of 2001 American Economic Review, 96(5), December 2006, 1589-1610. with D. Johnson and N. Souleles Using questions expressly added to the Consumer Expenditure Survey, we estimate the change in consumption expenditures caused by the 2001 federal income tax rebates and test the permanent income hypothesis. We exploit the [&hellip;]<\/p>\n","protected":false},"author":38,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"template-two-column.php","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"class_list":["post-672","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.0 (Yoast SEO v25.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MIT Sloan Faculty: Jonathan A. 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