Crossley, Thomas F and Fisher, Paul and Levell, Peter and Low, Hamish (2021) 'MPCs in an economic crisis: Spending, saving and private transfers.' Journal of Public Economics Plus, 2. p. 100005. ISSN 2666-5514

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Abstract

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.

Item Type:	Article
Uncontrolled Keywords:	Spending; MPC; Crowding out; COVID-19
Divisions:	Faculty of Social Sciences Faculty of Social Sciences > Institute for Social and Economic Research
SWORD Depositor:	Elements
Depositing User:	Elements
Date Deposited:	10 Nov 2021 13:29
Last Modified:	06 Jan 2022 14:33
URI:	http://repository.essex.ac.uk/id/eprint/31475

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