Initial impacts of the pandemic on consumer behavior: Evidence from linked income, spending, and savings data

Natalie Cox, Peter Ganong, Pascal Noel, Joseph Vavra, Arlene Wong, Diana Farrell, Fiona Greig, Erica Deadman

Research output: Contribution to journalArticlepeer-review

11 Scopus citations

Abstract

We use US household-level bank account data to investigate the heterogeneous effects of the pandemic on spending and savings. Households across the income distribution all cut spending from March to early April. Since mid-April, spending has rebounded most rapidly for low-income households. We find large increases in liquid asset balances for households throughout the income distribution. However, lower-income households contribute disproportionately to the aggregate increase in balances, relative to their prepandemic shares. Taken together, our results suggest that spending declines.

Original languageEnglish (US)
Pages (from-to)35-82
Number of pages48
JournalBrookings Papers on Economic Activity
Volume2020
Issue numberSpecial Edition
DOIs
StatePublished - Jun 1 2020

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'Initial impacts of the pandemic on consumer behavior: Evidence from linked income, spending, and savings data'. Together they form a unique fingerprint.

Cite this