Stimulating savings: An analysis of cash handouts in Australia and the United States

Davidson, S and De Silva, A 2013, 'Stimulating savings: An analysis of cash handouts in Australia and the United States', Agenda: A Journal of Policy Analysis and Reform, vol. 20, no. 2, pp. 39-57.


Document type: Journal Article
Collection: Journal Articles

Title Stimulating savings: An analysis of cash handouts in Australia and the United States
Author(s) Davidson, S
De Silva, A
Year 2013
Journal name Agenda: A Journal of Policy Analysis and Reform
Volume number 20
Issue number 2
Start page 39
End page 57
Total pages 19
Publisher ANU Press
Abstract At the onset of the Global Financial Crisis governments around the world implemented fiscal stimulus packages. A key component of many of these packages was aimed at stimulating consumer spending. In Australia and the United States, for example, households received one-off cash payments. We assess the changes in the macroeconomic levels of consumption and savings of both countries coinciding with the timing of the household bonuses using an econometric time series method known as seemingly unrelated time-series equations. The results suggest that the one-off cash bonuses did not stimulate consumption. On the contrary, the evidence suggests savings was stimulated.
Subject Macroeconomics (incl. Monetary and Fiscal Theory)
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ISSN 1322-1833
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