Estimating the impact of fiscal stimulus on household expenditure.

  • Steinhauser, Ralf (PI)
  • Aisbett, Emma (CoI)
  • Brueckner, Markus (CoI)
  • Pan, Liyi (CoI)

    Project: Research

    Project Details

    Description

    Following the global financial crisis Australia put in place one of the largest fiscal policy packages in the developed world. What impact did the tax bonus payments have on household consumption? We will estimate the marginal propensity to consume out of a government cash handout, gaining a better sense of how households respond to such fiscal payments and thus facilitating better modelling of the Australian economy. We use a research methodology not previously implemented in Australia exploiting the randomised rollout of payments combined with a unique household-level panel dataset on weekly expenditure. The resulting analysis is likely to produce the best estimates to date of the short-term impact of these payments on spending.
    StatusFinished
    Effective start/end date1/01/1217/07/12

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