TY  - RPRT
        AU  - Shim, Myungkyu
AU  - Kim, Kwang Hwan
AU  - Lee, Myunghwan Andrew
AU  - Choi, Sangyup
AU  - Bae, Siye
AU  - Coibion, Olivier
AU  - Gorodnichenko, Yuriy
        TI  - The Effects of Fiscal News on Household Expectations and Spending: New Causal Evidence
        PY  - 2026/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18486
        UR  - https://www.iza.org/index.php/publications/dp18486
        AB  - We provide experimental evidence on how fiscal news shapes households’ expectations and spending behavior. Using a new survey of ~11,000 Korean individuals linked to automatically collected high-frequency spending data, we elicit respondents’ fiscal and macroeconomic beliefs and randomly provide them with one of five pieces of information about current public debt levels, fiscal deficits, and the government’s plans for deficit reduction. Exogenous increases in expected future public debt raise expected inflation and increase consumer spending. On the other hand, exogenous increases in expected fiscal balance raise expected output growth and have no significant effect on consumer spending.
        KW  - RCT
KW  - government debt
KW  - fiscal policy
KW  - expectations
KW  - transaction-level data
KW  - consumption
        ER  -