Transfer Payments and the Macroeconomy: the Effects of Social Security Benefit Changes, 1952-1991

@article{Romer2014TransferPA,
  title={Transfer Payments and the Macroeconomy: the Effects of Social Security Benefit Changes, 1952-1991},
  author={Christina D. Romer and David H. Romer},
  journal={NBER Working Paper Series},
  year={2014}
}
From the early 1950s to the early 1990s, increases in Social Security benefits in the United States varied widely in size and timing, and were only rarely undertaken in response to short-run macroeconomic developments. This paper uses these benefit increases to investigate the macroeconomic effects of changes in transfer payments. It finds a large, immediate, and statistically significant response of consumption to permanent changes in transfers. The response appears to decline at longer… 

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