Neil Thakral

General seminars
amse seminar

Neil Thakral

Brown University
Anticipation and consumption
Joint with
Linh Tô
Venue

IBD Amphi

Îlot Bernard du Bois - Amphithéâtre

AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille

Date(s)
Monday, October 4 2021| 11:30am to 12:45pm
Contact(s)

Ewen Gallic: ewen.gallic[at]univ-amu.fr
Avner Seror: avner.seror[at]univ-amu.fr

Abstract

Cash transfer payments are an increasingly widespread policy tool in developed and developing countries, used for both short-term and long-term objectives. We study the design of these policies by examining how the time horizon over which households anticipate receiving transfer payments affects consumption and savings. Using Nielsen Consumer Panel data, we estimate higher marginal propensities to spend for US households scheduled to receive the 2008 Economic Stimulus Payments sooner. Analyzing data from randomized experiments in Kenya and Malawi, we document higher savings among households scheduled to wait longer before receiving lump-sum transfers. We discuss implications of our results through a model of mental accounting.

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