Consumer response to the timing of income: evidence from a change in tax withholding

Article Abstract:

Former US president George Bush proposed to stimulate the economy in 1992 by introducing a package of fiscal measures. One of the proposals included the reduction in standard rates of withholding for income taxes. It reduced an employee's withholding tax by $29. This change in withholding is an unusual experiment for studying consumer behavior. The propensity to spend is not a function of the change in income. Findings do not support the idea that smooth consumption arises out of liquidity constraints.

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Household expenditure and the income tax rebates of 2001

Article Abstract:

The impact of tax income rebates on household expenditures is discussed by comparing several households that received their rebates at different times and analyzing trends in consumption expenditures.

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Consumer response to tax rebates

Article Abstract:

A survey on the proposed usage of the tax rebates by consumers is discussed.

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