Working Paper: NBER ID: w15311
Authors: William N. Evans; Timothy J. Moore
Abstract: Many studies find that households increase their consumption after the receipt of expected income payments, a result inconsistent with the life-cycle/permanent income hypothesis. Consumption can increase adverse health events, such as traffic accidents, heart attacks and strokes. In this paper, we examine the short-term mortality consequences of income receipt. We find that mortality increases following the arrival of monthly Social Security payments, regular wage payments for military personnel, the 2001 tax rebates, and Alaska Permanent Fund dividend payments. The increase in short-run mortality is large, potentially eliminating some of the protective benefits of additional income.
Keywords: mortality; income receipt; health outcomes; cash transfers; economic activity
JEL Codes: D91; H31; H55; I10; I12; I38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Income receipt (D33) | Mortality (I12) |
| Social security payments (H55) | Mortality (I12) |
| Military wages (J31) | Mortality (I12) |
| Tax rebates (H20) | Mortality (I12) |
| Alaska Permanent Fund dividends (H79) | Mortality (I12) |
| Increased economic activity (F69) | Adverse health outcomes (I12) |