Matthew Shapiro’s research on “How Economic Shocks Affect Spending” is featured in the NBER Reporter. Shapiro and his collaborators (Michael Gelman, U-M PhD Candidate; Shachar Kariv, University of California, Berkeley; Dan Silverman, Arizona State University; Steven Tadelis, University of California, Berkeley) use daily checking and credit card account data on over 1,000,000 individuals to study how spending responds to expected and unexpected changes in income.

With Joel Slemrod (Professor of Economics) and Claudia Sahm (Principal Economist, Federal Reserve), Shapiro quantify the spending response to economic stimulus payments such as the 2001 and 2008 tax rebates and the 2009 and 2011 temporary tax cuts using questions they included in the University of Michigan's Survey of Consumers.

Read the research summary, “How Economic Shocks Affect Spending” by Matthew D. Shapiro to discover their findings.