Document Type
Working Paper
Publication Date
10-2025
College/Unit
Chambers College of Business and Economics
Document Number
25-04
Department/Program/Center
Economics
Abstract
This paper shows that consumption and income data in the Diary of Consumer Payment Choice (DCPC) cover high percentages of U.S. data, forecast well in real time, and replicate the literature’s estimation and general rejection of PIH models with time aggregated data. Novel estimates reveal evidence of daily consumption smoothing after accounting for three features of daily data: 1) discrepancy between consumption and expenditures (e.g., bill payments); 2) discrete daily expenditures and income; and 3) asynchronous consumption and income. Convenience samples used in the literature appear to reflect selection effects related to payment choices (cash or mobile) that affect model inference. Relative to bank transactions data, the DCPC is more representative, publicly available, and offers other advantages.
Digital Commons Citation
Gilyard, Shaun and Schuh, Scott, "Daily Consumption Smoothing? New Evidence from a Payment Diary" (2025). Economics Faculty Working Papers Series. 258.
https://researchrepository.wvu.edu/econ_working-papers/258