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Reported Effects versus Revealed-Preference Estimates: Evidence from the Propensity to Spend Tax Rebates

By Jonathan A. Parker and Nicholas S. Souleles

American Economic Review: Insights, December 2019

We evaluate the consistency of two methods for estimating the effect of an economic policy: (i) asking people how the policy caused them to change their behavior (reported effects) and (ii) inferring this change using data on behavior and differences in t...