Abstract
AbstractThe Earned Income Tax Credit (EITC) transferred more than $67 billion to taxpayers in 2016. We estimate changes in spending that occur following EITC disbursement. We make three key advances in identifying the effect: using estimated EITC dollar benefits to differentiate the impact of low from high benefits; estimating the impact by liquid assets; and, employing a triple‐difference model around the 1993 expansion and a separate triple‐difference model over the number of children. We find that the EITC acts as supplementary SNAP benefits for those with small EITC benefits, while those with larger benefits increase spending on durables, particularly automobiles.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
