NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Rational Illiquidity and Excess Sensitivity: Theory and Evidence from Income Tax Withholding and Refunds

Michael Gelman, Shachar Kariv, Matthew D. Shapiro, Dan Silverman

NBER Working Paper No. 25757
Issued in April 2019

---- Acknowledgments ----

We thank William Boning, Damon Jones, Joel Slemrod, Basit Zafar, and participants at seminars for helpful comments. This research is supported by a grant from the Alfred P. Sloan Foundation. Shapiro acknowledges additional support from the Michigan node of the NSF-Census Research Network (NSF SES 1131500). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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