Almost half of American families did not adjust their consumption
following receipt of the 2001 or 2008 tax rebates. Another 20 percent,
with low income and more likely to rent, spent a small but significant
amount. Households with large spending propensity held
high levels of mortgage debt. The heterogeneity is concentrated in
a few nondurable categories and a handful of "new vehicle" purchases.
The cumulated predictions of the heterogeneous response
model tend to be smaller and more accurate than their homogeneous
response model counterparts, offering new insights on the evaluation
of the two fiscal stimulus programs.
Misra, Kanishka, and Paolo Surico.
"Consumption, Income Changes, and Heterogeneity: Evidence from Two Fiscal Stimulus Programs."
American Economic Journal: Macroeconomics,
Consumer Economics: Empirical Analysis
Intertemporal Household Choice; Life Cycle Models and Saving
Macroeconomics: Consumption; Saving; Wealth
Business Fluctuations; Cycles