Publication type
Research Paper
Series Number
20/35
Series
IFS Working Paper Series
Authors
Publication date
October 20, 2020
Abstract:
MPCs were directly elicited from a representative sample of UK adults in July 2020. Reported 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.
Subjects
Link
https://www.ifs.org.uk/publications/15128
#526375
Related Publications
-
MPCs in an economic crisis: spending, saving and private transfers
- Thomas F. Crossley
- Paul Fisher
- Peter Levell
- Hamish Low
Journal Article
September 15, 2021 -
MPCs through COVID: spending, saving and private transfers
- Thomas Crossley
- Paul Fisher
- Peter Levell
- Hamish Low
ISER Working Paper Series
October 20, 2020