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

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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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

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