Many households received rebate checks in 2001 as advanced payments of the benefit of the new 10 percent federal income tax bracket. A survey conducted at the time the rebates were mailed finds that few households said that the rebate led them mostly to increase spending. A follow-up survey in 2002

This paper estimates the extent to which legal fees prevent liquidity-constrained households from declaring bankruptcy. To do so, it studies how the 2001 and 2008 income tax rebates affected consumer bankruptcy filings. We exploit the randomized timing of the rebate checks and estimate

; they find that those most likely to be liquidity constrained show the largest increase in credit card spending from the rebate check. The evidence that constrained individuals are big tax rebate spenders is important for fiscal policy but also raises questions about the underlying behavioral responses

Building on prior literature that constrained individuals consume the most out of a tax rebate, we study the tradeoffs high interest borrowers face when they received their 2008 tax stimulus checks. We find a persistent decline in payday borrowing in the pay cycles that follow the receipt

In 2001, many households received rebate checks as advanced payments of the benefit of the new, 10 percent federal income tax bracket. A survey conducted at the time the rebates were mailed finds that few households said that the rebate led them mostly to increase spending. A follow-up survey

per single person). For the quarter 2001.3, the aggregate rebate was about $35 billion, 1.4 % of that quarter=s GDP. The U.S. Treasury mailed these checks out in July, August, and September.1 The purpose of the rebate was to try to promptly stimulate consumer

by week, or cluster by the check date. In theory, it is more conservative to cluster by check date rather than by two-digit ssn group, because there are only 9–10 check dates as opposed to 100 ssn groups. But we do not cluster on check dates, because of the small number of resulting clusters. Online

Many households received rebate checks in 2001 as advanced payments of the benefit of the new 10 percent federal income tax bracket. A survey conducted at the time the rebates were mailed finds that few households said that the rebate led them mostly to increase spending. A follow-up survey in 2002

the response of consumers to tax rebates or increases that are made for stabilization purposes. In recent years there has been a resurgence of interest in estimating these important parameters, either using quasi-experimental data (such as randomization of the timing when tax rebate checks are received

the response of consum-ers to tax rebates or increases that are made for stabilization purposes. In recent years there has been a resurgence of interest in estimating these important parameters, either using quasi-experimental data (such as randomization of the timing when tax rebate checks are received