In this paper we use the enhanced consumption data in the Panel Survey of Income Dynamics (PSID) from 2005-2017 to … explore the transmission of income shocks to consumption. We build on the nonlinear quantile framework introduced in Arellano …, Blundell and Bonhomme (2017). Our focus is on the estimation of consumption responses to persistent nonlinear income shocks in …

on specific items related to children's education and development. Our findings indicate that families utilized the CTC … payments to enhance the well-being of both their children and the entire household. For each $100 of imputed CTC payment, our … found that the spending response for low-income households, Hispanic households, and non-Hispanic Black households was …