TY  - RPRT
        AU  - Koeniger, Winfried
AU  - Kress, Peter
        TI  - The Effect of Unconventional Fiscal Policy on Consumption – New Evidence Based on Transactional Data
        PY  - 2024/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17412
        UR  - https://www.iza.org/index.php/publications/dp17412
        AB  - We use novel transaction-level card expenditure data to estimate the effect of the temporary value-added tax (VAT) cut in Germany 2020. We find that the annualized growth rate of expenditures for durables increased by 6 percentage points (pp) during the tax cut, with a particularly strong increase of up to 11 pp for consumer electronics. The expenditure growth rate for semi-durables and non-durables did not change by and large. The estimates imply a consumption multiplier of 0.2 and an elasticity of fiscal revenues to a VAT rate reduction of two thirds.
        KW  - consumption expenditure
KW  - transactional data
KW  - temporary VAT cut
KW  - unconventional fiscal policy
        ER  -