IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v30y2023i12p1680-1684.html
   My bibliography  Save this article

Spending behavior and stimulus transfer use in response to income shocks among older Americans: evidence from the COVID-19 pandemic

Author

Listed:
  • Muna Sharma
  • Patryk Babiarz

Abstract

This study examines household behavioural responses to the pandemic-induced income shocks regarding their overall spending and spending out of 2020 CARES stimulus payments. Using data from the 2020 Health and Retirement Study COVID-19 project and restricting our sample to older adults (51 years old and above), we show that the negative income shocks experienced during the COVID-19 pandemic put downward pressure on household spending. Results also reveal that, relative to those who did not experience an income shock, stimulus recipients who experienced income losses were more likely to use the stimulus transfer to increase spending, pay off debt, or for other purposes rather than to save.

Suggested Citation

  • Muna Sharma & Patryk Babiarz, 2023. "Spending behavior and stimulus transfer use in response to income shocks among older Americans: evidence from the COVID-19 pandemic," Applied Economics Letters, Taylor & Francis Journals, vol. 30(12), pages 1680-1684, July.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:12:p:1680-1684
    DOI: 10.1080/13504851.2022.2078774
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2022.2078774
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2022.2078774?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:apeclt:v:30:y:2023:i:12:p:1680-1684. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.