Liquidity constraint tightness and consumer responses to fiscal stimulus policy by Claus Trustrup Kreiner, David Dreyer Lassen and Soren Leth - Petersen
By: Thustrup Kreiner, Claus
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Contributor(s): Dreyer Lassen, David | Leth Petersen, Søren.
Material type: 
ArticlePublisher: 2019Subject(s): TASAS | INTERES | TIPOS | POLITICA FISCAL | INCENTIVOS FISCALESOnline resources: Click here to access online
In:
American Economic Journal. Economic Policy v. 11, n. 1, February 2019, p. 351-379Summary: The marginal interest rate is the price at which a household can
access additional liquidity. Consumption theory posits that variation in marginal interest rates across consumers predicts differences in the propensity to spend a stimulus payment. This hypothesis is tested in the context of a Danish 2009 stimulus policy that transformed illiquid pension wealth into liquid wealth. Marginal interest rates are constructed from administrative records with account level information and merged with survey data measuring the spending response to the stimulus policy. The data reveal substantial variation in marginal interest rates across consumers, and these interest rates predict spending responses.
| Item type | Current location | Home library | Call number | URL | Status | Date due | Barcode |
|---|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 2135/2019/1-3 (Browse shelf) | http://resolver.ebscohost.com/openurl?sid=EBSCO:eoh&genre=article&issn=19457731&ISBN=&volume=11&issue=1&date=20190201&spage=351&pages=351-379&title=American%20Economic%20Journal:%20Economic%20Policy&atitle=Liquidity%20Constraint%20Tightness%20and%20Consum | Available | OP 2135/2019/1-3 |
Disponible también en formato electrónico en la Biblioteca del IEF.
Resumen.
The marginal interest rate is the price at which a household can
access additional liquidity. Consumption theory posits that variation in marginal interest rates across consumers predicts differences in the propensity to spend a stimulus payment. This hypothesis is tested in the context of a Danish 2009 stimulus policy that transformed illiquid pension wealth into liquid wealth. Marginal interest rates are constructed from administrative records with account level information and merged with survey data measuring the spending response to the stimulus policy. The data reveal substantial variation in marginal interest rates across consumers, and these interest rates predict spending responses.
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