NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Economic Stimulus Payments of 2008 and the Aggregate Demand for Consumption

Christian Broda, Jonathan A. Parker

NBER Working Paper No. 20122
Issued in May 2014
NBER Program(s):   EFG   ME   PE

Using a survey of households in the Nielsen Consumer Panel and the randomized timing of disbursement of the 2008 Economic Stimulus Payments, we find that a household’s spending rose by ten percent the week it received a Payment and remained high cumulating to 1.5–3.8 percent of spending over three months. Our estimates imply partial-equilibrium increases in aggregate demand of 1.3 percent of consumption in the second quarter of 2008 and 0.6 percent in the third. Spending is concentrated among households with low wealth or low past income; a household’s spending did not increase significantly when it learned about its Payment.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Information about Free Papers

You should expect a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

A data appendix is available at http://www.nber.org/data-appendix/w20122

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w20122

Users who downloaded this paper also downloaded these:
Friedman w20128 Has the Financial Crisis Permanently Changed the Practice of Monetary Policy? Has It Changed the Theory of Monetary Policy?
Wozniak w20095 Discrimination and the Effects of Drug Testing on Black Employment
Rogoff w20126 Costs and Benefits to Phasing Out Paper Currency
Mocan and Raschke w20059 Economic Well-being and Anti-Semitic, Xenophobic, and Racist Attitudes in Germany
Brown and Lahey w20125 Small Victories: Creating Intrinsic Motivation in Savings and Debt Reduction
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us