Replication data for: Consumption and Debt Response to Unanticipated Income Shocks: Evidence from a Natural Experiment in Singapore

Principal Investigator(s): View help for Principal Investigator(s) Sumit Agarwal; Wenlan Qian

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Project Citation:

Agarwal, Sumit, and Qian, Wenlan. Replication data for: Consumption and Debt Response to Unanticipated Income Shocks: Evidence from a Natural Experiment in Singapore. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-06. https://doi.org/10.3886/E116118V1

Project Description

Summary: This paper uses a unique panel dataset of consumer financial transactions to study how consumers respond to an exogenous unanticipated income shock. Consumption rose significantly after the fiscal policy announcement: during the ten subsequent months, for each $1 received, consumers on average spent $0.80. We find a strong announcement effect -- 19 percent of the response occurs during the first two-month announcement period via credit cards. Subsequently, consumers switched to debit cards after disbursement before finally increasing spending on credit cards in the later months. Consumers with low liquid assets or with low credit card limit experienced stronger consumption responses. (JEL D12, D14, E21)

Scope of Project

JEL Classification:
      D12 Consumer Economics: Empirical Analysis
      D14 Household Saving; Personal Finance
      E21 Macroeconomics: Consumption; Saving; Wealth

Geographic Coverage: Singapore

Time Period(s): 2010 – 2012

Universe: A large, representative sample of consumers in Singapore

Data Type(s): administrative records data; observational data

Collection Notes: We obtain the proprietary dataset through NDA.

Methodology

Data Source: DBS Bank, Singapore

Unit(s) of Observation: individual, year and month,

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Published Versions

V1 [2019-12-06]

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DDI 2.5

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