Consumption Responses to Pay Frequency: Evidence From “Extra” Paychecks

To budget, households must manage cash inflows and outflows. This paper studies how households manage their cash flow when the timing of their income and the timing of their expenditures is misaligned. I show that spending responds to income variation arising from such misalignment in ways consistent with mental accounting.



Citation:

Yiwei Zhang (2017) ,"Consumption Responses to Pay Frequency: Evidence From “Extra” Paychecks", in NA - Advances in Consumer Research Volume 45, eds. Ayelet Gneezy, Vladas Griskevicius, and Patti Williams, Duluth, MN : Association for Consumer Research, Pages: 170-174.

Authors

Yiwei Zhang, University of Chicago, USA



Volume

NA - Advances in Consumer Research Volume 45 | 2017



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