JOURNAL ARTICLE

What do fiscal stimulus packages mean for household debt?

  • Published In: Contemporary Economic Policy, 2023, v. 41, n. 2. P. 282 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Olivero, María Pía; Dvalishvili, Mikheil 3 of 3

Abstract

We study the links between fiscal stimulus packages during times of crisis and households' liabilities. We do so by using household‐level data on income and liabilities from the Consumer Expenditure Survey, and estimating an empirical model along those in the literature on the consumption effects of these packages. We find that receiving a check from the government tends to translate into a reduction in outstanding liabilities for American households. This effect is robust to controlling for income levels and household size. The effects are driven by households whose income is below the median and by those who remain employed during the crisis. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Contemporary Economic Policy. 2023/04, Vol. 41, Issue 2, p282
  • Document Type:Article
  • Subject Area:Politics and Government
  • Publication Date:2023
  • ISSN:1074-3529
  • DOI:10.1111/coep.12592
  • Accession Number:162013785
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