Souleles, Nicholas S; Agarwal, Sumit; Liu, Chunlin - National Bureau of Economic Research (NBER) - 2007
We use a new panel dataset of credit card accounts to analyze how consumers responded to the 2001 Federal income tax … rebates. We estimate the monthly response of credit card payments, spending, and debt, exploiting the unique, randomized … their credit card payments and thereby paying down debt. But soon afterwards their spending increased, counter to the …