We review different empirical approaches that researchers have taken to estimate how
consumption responds to income changes. We critically evaluate the empirical evidence on …

Exploiting variation in the timing of resets of adjustable-rate mortgages (ARMs), we find that
a sizable decline in mortgage payments (up to 50 percent) induces a significant increase in …

Using de-identified bank account data, we show that spending drops sharply at the large
and predictable decrease in income arising from the exhaustion of unemployment insurance …

Since 1982, all Alaskan residents have received a yearly cash dividend from the Alaska
Permanent Fund. Using the Current Population Survey and a synthetic control method, this …

A wide body of empirical evidence finds that approximately 25 percent of fiscal stimulus
payments (eg, tax rebates) are spent on nondurable household consumption in the quarter …

We use sizable lottery prizes in Norwegian administrative panel data to explore how
transitory income shocks are spent and saved over time and how households' marginal …

We measure the change in household spending caused by receipt of the economic stimulus
payments of 2008, using questions added to the Consumer Expenditure Survey and …

The wealthy hand-to-mouth are households who hold little or no liquid wealth (cash,
checking, and savings accounts), despite owning sizable amounts of illiquid assets (assets …

This paper uses a unique panel dataset of consumer financial transactions to study how
consumers respond to an exogenous unanticipated income shock. Consumption rose …

In a model calibrated to match micro‐and macroeconomic evidence on household income
dynamics, we show that a modest degree of heterogeneity in household preferences or …