Template-type: ReDIF-Paper 1.0
Author-Name: Fisher, Paul
Author-Name: Levell, Peter
Author-Name: Low, Hamish
Author-Name: Crossley, Thomas
Title: MPCs through COVID: spending, saving and private transfers
Abstract: MPCs were directly elicited from a representative sample of UK adults in July 2020. Re- ported MPCs are low, around 11% on average. They are higher, but still modest, for individuals in households with high current needs. These low MPCs may be a consequence of the prevailing economic uncertainty. Some respondents report that they would respond to a one-time income payment by transferring more to friends and family, others report they would see a decline in the payments received. Targeting payments to high-MPC individuals could be partly undone. Further, the aggregate MPC out of a stimulus payment need not equal the population-average MPC, even if all individuals receive the same payment.

Creation-Date: 20201020
Number: 2020-14
Publication-Status: published
File-URL: https://www.iser.essex.ac.uk/wp-content/uploads/files/working-papers/iser/2020-14.pdf
File-Format: Application/pdf
Handle: RePEc:ese:iserwp:2020-14