Did the 2001 Tax Rebate Stimulate Spending? Evidence from Taxpayer Surveys

38 Pages Posted: 7 Nov 2002

See all articles by Matthew D. Shapiro

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)

Date Written: November 2002

Abstract

In 2001, many households received rebate checks as advanced payments of the benefit of the new, 10 percent federal income tax bracket. A survey conducted at the time the rebates were mailed finds that few households said that the rebate led them mostly to increase spending. A follow-up survey in 2002, as well as a similar survey conducted after the attacks of 9/11, also indicates low spending rates. This paper investigates the robustness of these survey responses and assesses whether such surveys are useful for policy evaluation. It also draws lessons from the surveys for macroeconomic analysis of the tax rebate.

Suggested Citation

Shapiro, Matthew D. and Slemrod, Joel B., Did the 2001 Tax Rebate Stimulate Spending? Evidence from Taxpayer Surveys (November 2002). NBER Working Paper No. w9308. Available at SSRN: https://ssrn.com/abstract=347080

Matthew D. Shapiro (Contact Author)

University of Michigan at Ann Arbor - Department of Economics ( email )

and Survey Research Center
611 Tappan Street
Ann Arbor, MI 48109-1220
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313-764-2769 (Fax)

National Bureau of Economic Research (NBER) ( email )

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Cambridge, MA 02138
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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 R5396
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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