According to Feldstein [2008b], only about 10% to 20% of a one-time tax rebate provided to taxpayers

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According to Feldstein [2008b], “only about 10% to 20%” of a one-time tax rebate provided to taxpayers in 2008 was spent immediately. Using the life cycle model of Figure 18.7, explain why this result could have been predicted.

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Public Finance

ISBN: 978-0078021688

10th edition

Authors: Harvey Rosen, Ted Gayer

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Question Posted: Mar 25, 2015 09:44 AM

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According to Feldstein [2008b], only about 10% to 20% of a one-time tax rebate provided to taxpayers

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Intuitively the additional income from the rebate is spread over a perso...View the full answer

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