Reported Effects versus Revealed-Preference Estimates: Evidence from the Propensity to Spend Tax Rebates

A-Tier
Journal: American Economic Review: Insights
Year: 2019
Volume: 1
Issue: 3
Pages: 273-90

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We evaluate the consistency of two methods for estimating the effect of an economic policy: (i) asking people how the policy caused them to change their behavior (reported effects) and (ii) inferring this change using data on behavior and differences in treatment across people (revealed-preference estimates). Both methods are widely used to measure spending caused by increases in liquidity. Using federal stimulus payments disbursed quasi-randomly in 2008, we find larger revealed-preference estimates of spending propensities for households who report greater spending responses, and the methods produce similar average propensities. But evidence is mixed on the relationship between spending propensities and liquidity.

Technical Details

RePEc Handle
repec:aea:aerins:v:1:y:2019:i:3:p:273-90
Journal Field
General
Author Count
2
Added to Database
2026-01-28