Dr Paul Fisher explains what happens when the Government pays out to citizens – like energy support – to stimulate the economy and offset financial challenges people might be facing. The research looked at whether people pass the money onto others in their own family if they don’t need it or do they spend it?
Using Understanding Society’s COVID-19 study, Dr Fisher ran an experiment on how people would respond to hypopathetical government ‘stimulus payments’?
Find out more in this short podcast from the Understanding Society Insights series.
Read the paper Stimulus payments and private transfers in Economic Letters (January 2023)