Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Fiscal Policy D07-V3
In 2009 the Australian government delivered $8 billion in direct payments to households. These payments were pre-announced and randomly allocated over a 5-week period. We exploit this random allocation to estimate the causal response of households consumption expenditures. While we don't find a effect on consumption expenditures at the time of transfer we find a small, albeit statistically significant increase in consumption expenditures at the time of the announcement of the fiscal stimulus.