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How effective is the 2020 stimulus check in Minnesota and Wisconsin counties?

Author

Listed:
  • Rubana Mahjabeen

    (University of Wisconsin-Superior)

  • Praopan Pratoomchat

    (University of Wisconsin-Superior)

Abstract

This study estimates the multiplier impact of the first round of stimulus checks provided under the CARES Act 2020. Data was collected through a phone and online survey of individuals in 25 counties of Minnesota and Wisconsin. Survey data is utilized to compute the average marginal propensity to save and the multiplier. The results demonstrate a statistically significant difference between the location-specific multipliers and income-specific multipliers of Minnesota and Wisconsin. Counties with smaller towns have a higher multiplier impact (2.98) compared to counties with larger cities (2.24), and lower-income individuals create a larger multiplier impact (3.17) as opposed to higher-income individuals (2.00). The study finds that the gender-specific multipliers are not statistically different.

Suggested Citation

  • Rubana Mahjabeen & Praopan Pratoomchat, 2021. "How effective is the 2020 stimulus check in Minnesota and Wisconsin counties?," Economics Bulletin, AccessEcon, vol. 41(3), pages 1655-1665.
    • Handle: RePEc:ebl:ecbull:eb-21-00116
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    File URL: http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I3-P141.pdf
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    References listed on IDEAS

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    Cited by:

    1. Pattaphol Yuktadatta & Shunsuke Ono & Mostafa Saidur Rahim Khan & Yoshihiko Kadoya, 2022. "Satisfaction with the COVID-19 Economic Stimulus Policy: A Study of the Special Cash Payment Policy for Residents of Japan," Sustainability, MDPI, vol. 14(6), pages 1-15, March.

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    Keywords

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    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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