MPCs in an economic crisis: spending, saving and private transfers

• Publication Type: Journal Article
• Publication date: 15 September 2021
• DOI: https://doi.org/10.1016/j.pubecp.2021.100005
• ISSN: 26665514

Authors

Summary

MPCs were directly elicited from a representative sample of UK adults in July 2020 using receipt of a hypothetical unanticipated, one-time income payment. Reported MPCs are modest, around 11% on average. They are higher, but still modest, for individuals in households with high current needs. Significant fractions of respondents report they would use a windfall to pay down debt, or that they would change their transfer payments to or from family and friends. The latter means that the aggregate MPC out of a stimulus payment need not equal the population-average MPC.

Volume

Volume: 2:100005

Subjects

Notes

Open Access
Under a Creative Commons license