High-frequency Spending Responses to the Earned Income Tax Credit
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.
File(s): File format is text/html https://www.federalreserve.gov/econres/notes/feds-notes/high-frequency-spending-responses-to-the-earned-income-tax-credit-20180621.htm
Part of Series: FEDS Notes
Publication Date: 2018-06-21