Agarwal, Sumit; Liu, Chunlin; Souleles, Nicholas S. - 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 … credit card payments and thereby paying down debt. But soon afterwards spending increased, counter to the canonical Permanent …