Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229055
Authors: 
Carroll, Chris
Crawley, Edmund S.
Slacalek, Jirka
White, Matthew N.
Year of Publication: 
2020
Series/Report no.: 
ECB Working Paper No. 2441
Abstract: 
To predict the effects of the 2020 U.S. "CARES" act on consumption, we extend a model that matches responses of households to past consumption stimulus packages. The extension allows us to account for two novel features of the coronavirus crisis. First, during the lockdown, many types of spending are undesirable or impossible. Second, some of the jobs that disappear during the lockdown will not reappear when it is lifted. We estimate that, if the lockdown is short-lived, the combination of expanded unemployment insurance benefits and stimulus payments should be sufficient to allow a swift recovery in consumer spending to its pre-crisis levels. If the lockdown lasts longer, an extension of enhanced unemployment benefits will likely be necessary if consumption spending is to recover.
Subjects: 
Consumption
Coronavirus
Stimulus
JEL: 
D83
D84
E21
E32
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-4084-9
Document Type: 
Working Paper

Files in This Item:
File
Size
767.35 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.