&Apos;3rd of Tha Month&Apos;: Do Social Security Recipients Smooth Consumption between Checks?

@article{Stephens2002Apos3rdOT,
  title={\&Apos;3rd of Tha Month\&Apos;: Do Social Security Recipients Smooth Consumption between Checks?},
  author={Melvin Stephens},
  journal={NBER Working Paper Series},
  year={2002}
}
This paper examines the response of consumption expenditures to the monthly receipt of Social Security checks. Since the amount and arrival date of these checks are known to the recipients, the basic Life-Cycle/Permanent Income Hypothesis (LCPIH) predicts that consumption should not respond to the receipt of these checks. Using daily diary data from the Consumer Expenditure Survey, this paper finds evidence that both the dollar amount and probability of expenditures increase immediately… Expand

Paper Mentions

Do Consumers React to Anticipated Income Changes? Evidence from the Alaska Permanent Fund
A central implication of the life-cycle/permanentincome hypothesis (LC/PIH) is that consumers should not respond to predictable changes in their income. To test this hypothesis, a number of recentExpand
Consumer Spending and the Economic Stimulus Payments of 2008
We measure the response of household spending to the economic stimulus payments (ESPs) disbursed in mid-2008, using special questions added to the Consumer Expenditure Survey and variation arisingExpand
Paycheck Receipt and the Timing of Consumption
This paper examines the consumption response to monthly paycheck receipt. Since the amount and arrival date of paychecks are known in advance, the receipt of a paycheck does not coincide with theExpand
Paycheque Receipt and the Timing of Consumption
This paper examines the consumption response to monthly paycheck receipt. Since the amount and arrival date of paychecks are known in advance, the receipt of a paycheck does not coincide with theExpand
Does the benefits schedule of cash assistance programs affect the purchase of temptation goods? Evidence from Peru.
TLDR
This study exploits a change in the payment schedule of Peru's conditional cash transfer program to identify the impact of benefit receipt frequency on the purchase of temptation goods and finds that larger, less frequent payments increased the expenditure share of alcohol and sweets. Expand
Accessorizing. The Effect of Union Contract Renewals on Consumption
In this paper we use information on monthly wage increases set by collective agreements in Italy and exploit their variation across sectors and over time in order to examine how household consumptionExpand
Household Food Expenditures across Income Groups: Do Poor Households Spend Differently than Rich Ones?
The Life Cycle - Permanent Income Hypotheses (LCPIH) suggests that the timing of an income payment or government transfer should have no effect on the expenditures of the recipient. In this paper weExpand
Poverty and economic behavior: gambling on social security paydays
ABSTRACT The goal of this research is to explore whether actual lottery revenues are sensitive to economic scarcity, as measured by intra-monthly stock of financial resources. Paydays of socialExpand
Does the Timing of Food Stamp Distribution Matter? A Panel‐Data Analysis of Monthly Purchasing Patterns of US Households
TLDR
The relationship between the timing of food stamp receipt and purchasing patterns is examined, finding that purchases of a variety of goods are meaningfully higher on receipt days, consistent with previous work that suggests that recipients are very impatient. Expand
Explaining Intra-Monthly Consumption Patterns: The Timing of Income or the Timing of Consumption Commitments?
A number of recent studies have concluded that consumer spending patterns over the month are closely linked to the timing of income receipt. This correlation is interpreted as evidence of hyperbolicExpand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 27 REFERENCES
The Response of Household Consumption to Income Tax Refunds
A central implication of the life-cycle (or permanent-income) theory is that consumption should not respond to predictable fluctuations in income. Tests of this implication have yielded mixedExpand
The Reaction of Household Consumption to Predictable Changes in Social Security Taxes
The key implication of rational expectations and the basic life-cycle/permanent-income hypothesis: that predictable changes in income have no effect on the growth rate of consumption expenditures, isExpand
Do Consumers React to Anticipated Income Changes? Evidence from the Alaska Permanent Fund
A central implication of the life-cycle/permanentincome hypothesis (LC/PIH) is that consumers should not respond to predictable changes in their income. To test this hypothesis, a number of recentExpand
Social Security Benefits, Consumption Expenditure, and the Life Cycle Hypothesis
This paper examines the impact of changes in social security benefits on aggregate consumption expenditure. Under the null hypothesis, there should be no contemporaneous effect at the monthlyExpand
The response of expenditures to anticipated income changes : panel data estimates
Standard models of intertemporal allocation predict that the time path of expenditures should beindependent of the time path of income. Recently two papers, Parker (1999) and Souleles (1999)haveExpand
Consumer Response to the Timing of Income: Evidence from a Change in Tax Withholding
In 1992, the income tax withholding tables were adjusted so that withholding was reduced. A typical worker received an extra $28.80 in take-home pay per month in March through December 1992, to beExpand
Testing the Response of Consumption to Income Changes with (Noisy) Paneldata
This paper tests the rational expectations lifecycle model of consumption against (1) a simple Keynesian model and (ii) the rational expectations lifecycle model with imperfect capital markets. TheExpand
Influence of retroactive disability payments on recipients' compliance with substance abuse treatment.
TLDR
Preliminary data suggest that large cash infusions from Social Security disability programs can be disruptive to the course of treatment for substance abusers. Expand
Permanent Income, Current Income, and Consumption: Evidence From Two Panel Data Sets
In this paper, the author estimates Euler equations, i.e., the first order conditions of the consumers' maximization problem, using data from two data sets. Consumption data are taken from theExpand
The Timing and Magnitude of Retail Store Markdowns: Evidence from Weekends and Holidays
We examine daily prices of eight goods at seventeen retail stores collected in Ann Arbor, Michigan, over a four-month period from November 1 to February 28. We focus on weekly and seasonal priceExpand
...
1
2
3
...