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WP202210-Stimulus-payments-and-private-transfers.pdf
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Private transfers can affect the spending response to stimulus payments, as those receiving income windfalls may transfer resources to other households in greater financial need. We report a survey experiment where individuals were asked how they would respond to a £500 payment, with a randomly selected subset of individuals explicitly told that all households would receive the same payments (a ‘public windfall’ scenario). This additional information increased MPCs by 11%. Reported transfer intentions in response to windfalls suggest that public payments crowd out private transfers, partly accounting for the higher MPCs in the public windfall case.
Authors
![Hamish Low](/sites/default/files/styles/square_desktop/public/2022-07/Hamish_Low.jpg?itok=SxQtBzSd)
Research Fellow University of Oxford
Hamish is the James Meade Professor of Economics at the University of Oxford, a Professorial Fellow of Nuffield College and a Research Fellow at IFS.
![Thomas Crossley](/sites/default/files/styles/square_desktop/public/2022-07/Tom%20Crossley.jpg?itok=8BNVWAtq)
Research Fellow University of Michigan
Tom is a Research Fellow at IFS, a Research Professor for the Institute for Social Research at the University of Michigan.
![Peter Levell](/sites/default/files/styles/square_desktop/public/2022-06/Peter_Levell.jpg?itok=QouDiSQD)
Associate Director
Peter joined in 2009. He has published several papers on the microeconomics of household spending and labour supply decisions over the life-cycle.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Paul Fisher
Working Paper details
- DOI
- 10.1920/wp.ifs.2022.1022
- Publisher
- Institute for Fiscal Studies
Suggested citation
Crossley, T et al. (2022). Stimulus payments and private transfers. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/stimulus-payments-and-private-transfers (accessed: 30 June 2024).
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