This paper uses a unique panel data set of consumer financial transactions to study how consumers respond to exogenous income shocks. Specifically, we study how their spending behavior on their credit card, debit card and bank checking account responds to a positive income shock. Our analysis is bas...
Keywords:
Consumption, Spending, Debt, Credit Cards, Household Finance, Banks, Loans, Durable Goods, Discretionary Spending, Fiscal Policy, Tax Rebates, Liquidity Constraints, Credit Constraints
