This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
American Economic Review: Vol. 96 No. 5 (December 2006)
AER Volume. 96, Issue 5 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
AER Forthcoming Articles
Full-text Article
Download Data Set (1.30 MB)
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
AER Forthcoming Articles
Household Expenditure and the Income Tax Rebates of 2001
Article Citation
Johnson, David S.,
Jonathan A. Parker, and
Nicholas S. Souleles. 2006. "Household Expenditure and the Income Tax Rebates of 2001."
American Economic Review,
96(5): 1589-1610.
DOI: 10.1257/aer.96.5.1589
DOI: 10.1257/aer.96.5.1589
Abstract
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 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. (JEL D12,
D91, E21, E62, H24, H31)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (1.30 MB)
Authors
Johnson, David S.
Parker, Jonathan A.
Souleles, Nicholas S.
Parker, Jonathan A.
Souleles, Nicholas S.
