Did the 2008 Rebate Fail? A Response to Taylor and Feldstein
AbstractDid the 2008 rebate fail to stimulate consumer spending? In their influential AER articles, John Taylor and Martin Feldstein each claim that BEA aggregate time series data show that the 2008 rebate failed. Re-examining the BEA data, we find that the data instead show there is a high probability that the rebate stimulated consumption. Moreover, the hypothesis that a rebate has half the impact of ordinary disposable income cannot be rejected. Thus, we find that analysis of the BEA aggregate time series data is consistent with the conclusion from the micro-data studies that the 2008 rebate stimulated consumer spending.
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Bibliographic InfoPaper provided by University of Delaware, Department of Economics in its series Working Papers with number 11-10.
Length: 33 pages
Date of creation: 2011
Date of revision:
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Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
More information through EDIRC
fiscal policy; fiscal stimulus; tax rebates;
Other versions of this item:
- Kenneth A. Lewis & Laurence S. Seidman, 2011. "Did the 2008 rebate fail? a response to Taylor and Feldstein," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 34(2), pages 183-204, January.
- Kenneth A. Lewis & Laurence S. Seidman, 2010. "Did the 2008 Rebate Fail? A Response to Taylor and Feldstein ," Working Papers 10-06, University of Delaware, Department of Economics.
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
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- Claudia R. Sahm & Matthew D. Shapiro & Joel Slemrod, 2010.
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in: Tax Policy and the Economy, Volume 24, pages 69-110
National Bureau of Economic Research, Inc.
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136, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics..
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- David S. Johnson & Jonathan A. Parker & Nicholas S. Souleles, 2004. "Household Expenditure and the Income Tax Rebates of 2001," NBER Working Papers 10784, National Bureau of Economic Research, Inc.
- Laurence Seidman, 2014. "Stimulus Without Debt," Working Papers 14-01, University of Delaware, Department of Economics.
- Laurence Seidman, 2011. "Keynesian Fiscal Stimulus: What Have We Learned from the Great Recession?," Working Papers 11-11, University of Delaware, Department of Economics.
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