IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-21-00116.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I3-P141.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alan J. Auerbach & Yuriy Gorodnichenko, 2012. "Measuring the Output Responses to Fiscal Policy," American Economic Journal: Economic Policy, American Economic Association, vol. 4(2), pages 1-27, May.
    2. L'industria, 2020. "Call for Papers," L'industria, Società editrice il Mulino, issue 4, pages 787-801.
    3. Sumit Agarwal & Chunlin Liu & Nicholas S. Souleles, 2007. "The Reaction of Consumer Spending and Debt to Tax Rebates-Evidence from Consumer Credit Data," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 986-1019, December.
    4. Sokbae Lee & Yuan Liao & Myung Hwan Seo & Youngki Shin, 2020. "Desperate Times Call For Desperate Measures: Government Spending Multipliers In Hard Times," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1949-1957, October.
    5. Alan J. Auerbach & Yuriy Gorodnichenko, 2013. "Corrigendum: Measuring the Output Responses to Fiscal Policy," American Economic Journal: Economic Policy, American Economic Association, vol. 5(3), pages 320-322, August.
    6. L'industria, 2020. "Call for papers," L'industria, Società editrice il Mulino, issue 1, pages 173-187.
    7. L'industria, 2020. "Call for papers," L'industria, Società editrice il Mulino, issue 2, pages 367-370.
    8. Valerie A. Ramey & Sarah Zubairy, 2018. "Government Spending Multipliers in Good Times and in Bad: Evidence from US Historical Data," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 850-901.
    9. Jianjun Zhang & Shu Lin, 2014. "Business and Government," Springer Books, in: Zhi-Xue Zhang & Jianjun Zhang (ed.), Understanding Chinese Firms from Multiple Perspectives, edition 127, chapter 0, pages 51-79, Springer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Choi, Sangyup & Shin, Junhyeok, 2023. "Household indebtedness and the macroeconomic effects of tax changes," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 22-52.
    2. Sims, Eric & Wolff, Jonathan, 2018. "The state-dependent effects of tax shocks," European Economic Review, Elsevier, vol. 107(C), pages 57-85.
    3. Henrique S. Basso & Omar Rachedi, 2021. "The Young, the Old, and the Government: Demographics and Fiscal Multipliers," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(4), pages 110-141, October.
    4. Daniel Stodt, 2025. "Non-Linearity of Government Spending Multiplier: The Case of a Small Open Economy," Working Papers 2025/3, Czech National Bank, Research and Statistics Department.
    5. Yuliya Demyanyk & Elena Loutskina & Daniel Murphy, 2019. "Fiscal Stimulus and Consumer Debt," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 728-741, October.
    6. Li, Rong & Wei, Ning, 2022. "Economic policy uncertainty and government spending multipliers," Economics Letters, Elsevier, vol. 217(C).
    7. Fernando Broner & Daragh Clancy & Aitor Erce & Alberto Martin, 2022. "Fiscal Multipliers and Foreign Holdings of Public Debt," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(3), pages 1155-1204.
    8. Hadzi-Vaskov Metodij & Pienknagura Samuel & Ricci Luca Antonio, 2023. "The Macroeconomic Impact of Social Unrest," The B.E. Journal of Macroeconomics, De Gruyter, vol. 23(2), pages 917-958, June.
    9. Rüth, Sebastian K., 2018. "Fiscal stimulus and systematic monetary policy: Postwar evidence for the United States," Economics Letters, Elsevier, vol. 173(C), pages 92-96.
    10. Ahmed, M. Iqbal & Cassou, Steven P., 2021. "Asymmetries in the effects of unemployment expectation shocks as monetary policy shifts with economic conditions," Economic Modelling, Elsevier, vol. 100(C).
    11. Benjamin Born & Francesco D’Ascanio & Gernot J. Müller & Johannes Pfeifer, 2024. "Mr. Keynes Meets the Classics: Government Spending and the Real Exchange Rate," Journal of Political Economy, University of Chicago Press, vol. 132(5), pages 1642-1683.
    12. Rostami-Tabar, Bahman & Ali, Mohammad M. & Hong, Tao & Hyndman, Rob J. & Porter, Michael D. & Syntetos, Aris, 2022. "Forecasting for social good," International Journal of Forecasting, Elsevier, vol. 38(3), pages 1245-1257.
    13. Gaetano Basso & Tito Boeri & Alessandro Caiumi & Marco Paccagnella, 2020. "The new hazardous jobs and worker reallocation," OECD Social, Employment and Migration Working Papers 247, OECD Publishing.
    14. William Ginn, 2022. "Climate Disasters and the Macroeconomy: Does State-Dependence Matter? Evidence for the US," Economics of Disasters and Climate Change, Springer, vol. 6(1), pages 141-161, March.
    15. Fotiou, Alexandra & Shen, Wenyi & Yang, Shu-Chun S., 2020. "The fiscal state-dependent effects of capital income tax cuts," Journal of Economic Dynamics and Control, Elsevier, vol. 117(C).
    16. Andrea Boitani & Salvatore Perdichizzi & Chiara Punzo, 2022. "Nonlinearities and expenditure multipliers in the Eurozone [Tales of fiscal adjustment]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(2), pages 552-575.
    17. James Cloyne & Òscar Jordà & Alan M. Taylor, 2020. "Decomposing the Fiscal Multiplier," Working Paper Series 2020-12, Federal Reserve Bank of San Francisco.
    18. Valerie A. Ramey, 2019. "Ten Years after the Financial Crisis: What Have We Learned from the Renaissance in Fiscal Research?," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 89-114, Spring.
    19. Banerjee, Ryan & Zampolli, Fabrizio, 2019. "What drives the short-run costs of fiscal consolidation? Evidence from OECD countries," Economic Modelling, Elsevier, vol. 82(C), pages 420-436.
    20. Wei Dong & Geoffrey Dunbar & Christian Friedrich & Dmitry Matveev & Romanos Priftis & Lin Shao, 2021. "Complementarities Between Fiscal Policy and Monetary Policy—Literature Review," Discussion Papers 2021-4, Bank of Canada.

    More about this item

    Keywords

    Saving; Consumption; Multiplier; Household Economics;
    All these keywords.

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-21-00116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.