Date of Award
It has long been debated which type of fiscal policy is most effective in a recession, a tax cut or an increase in government spending. Throughout the history of the United States, many administrations have tried to implement various forms and combinations of tax cuts and spending hikes to jump start the economy. Some were effective, and some were not. By determining what it is that makes fiscal policy effective, the government can be better prepared and more informed when designing fiscal policy in the future. Consumer confidence is one relevant metric for this analysis because it is sensitive to changes in government policy, especially in a recession. Furthermore, consumer confidence indexes are often used to analyze and even predict the state of the economy. Many studies have provided evidence for these conclusions. This thesis intends to address this macro issue on a micro scale by examining the effect of different fiscal policies and fiscal policy combinations on the consumer confidence levels of individuals.
Omohundro, Sara, "Effects of Fiscal Policy on Consumer Confidence" (2016). Undergraduate Honors Thesis Collection. 354.