Abstract

http://ssrn.com/abstract=1651430
 
 

Citations (4)



 


 



Check in the Mail or More in the Paycheck: Does the Effectiveness of Fiscal Stimulus Depend on How it is Delivered?


Claudia Sahm


Federal Reserve Board

Matthew D. Shapiro


University of Michigan at Ann Arbor - Department of Economics; National Bureau of Economic Research (NBER)

Joel B. Slemrod


University of Michigan, Stephen M. Ross School of Business; National Bureau of Economic Research (NBER)

July 2010

NBER Working Paper No. w16246

Abstract:     
Recent fiscal policies, including the 2008 stimulus payments and the 2009 Making Work Pay tax credit, aimed to increase household spending. This paper quantifies the spending response to these policies and examines differences in spending by whether the stimulus was delivered as a one-time payment or as a flow of payments from reduced withholding. Based on responses from a representative sample of households in the Thomson Reuters/University of Michigan Surveys of Consumers, the paper finds that the reduction in withholding in 2009 boosted spending at roughly half the rate (13 percent) as the one-time payments (25 percent) in 2008.

Number of Pages in PDF File: 52

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Date posted: August 2, 2010  

Suggested Citation

Sahm, Claudia and Shapiro, Matthew D. and Slemrod, Joel B., Check in the Mail or More in the Paycheck: Does the Effectiveness of Fiscal Stimulus Depend on How it is Delivered? (July 2010). NBER Working Paper No. w16246. Available at SSRN: http://ssrn.com/abstract=1651430

Contact Information

Claudia Sahm (Contact Author)
Federal Reserve Board ( email )
20th Street and Constitution Avenue NW
Washington, DC 20551
United States
202-452-2291 (Phone)
Matthew D. Shapiro
University of Michigan at Ann Arbor - Department of Economics ( email )
and Survey Research Center
611 Tappan Street
Ann Arbor, MI 48109-1220
United States
313-764-5419 (Phone)
313-764-2769 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
313-764-5419 (Phone)
313-764-2769 (Fax)
Joel B. Slemrod
University of Michigan, Stephen M. Ross School of Business ( email )
701 Tappan Street
Room A2120
Ann Arbor, MI 48109-1234
United States
734-936-3914 (Phone)
734-763-4032 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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