We empirically assess whether a usually expected negative response of private consumption and private investment to a fiscal consolidation is reversed. We focus on a large sample of 174 countries between 1970 and 2018. We also employ three alternative measures of the Cyclically Adjusted Primary...

How does private consumption react to an exogenous increase in government expenditure? Standard structural vector autoregressions (SVARs) usually report a positive GDP as well as consumption response, while event studies report a negative consumption response. We investigate in a SVAR whether...

Household time and money allocations in response to income support programs vary across diverse family circumstances and preferences, yet such heterogeneous responses are not well understood. Using data from a large-scale, multisite, U.S.-based randomized controlled study, we examine...