High-Frequency Spending Responses to the Earned Income Tax Credit
Posted: 28 Jun 2018 Last revised: 25 Jun 2020
Date Written: June, 2018
Abstract
Many households face large, high-frequency changes in income and have limited financial buffers to smooth their consumption through this income volatility. However, few studies have quantified spending responses to such timing shifts in income due to a lack of high-frequency spending data. We use a new dataset of anonymized daily, state-level spending to study a two-week delay in federal tax refunds with an earned income tax credit (EITC) in 2017.
Suggested Citation: Suggested Citation
Aladangady, Aditya and Aron-Dine, Shifrah and Cashin, David B. and Dunn, Wendy E. and Feiveson, Laura and Lengermann, Paul and Richard, Katherine and Sahm, Claudia, High-Frequency Spending Responses to the Earned Income Tax Credit (June, 2018). FEDS Notes No. 2018-06-21, Available at SSRN: https://ssrn.com/abstract=3201755 or http://dx.doi.org/10.17016/2380-7172.2199
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