Agarwal, Sumit (contributor); Liu, Chunlin (contributor); … - 2007 - Rev.
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 …