Date: 2020
Type: Working Paper
MPCs through COVID : spending, saving and private transfers
Working Paper, IFS Working Paper, 2020/35
CROSSLEY, Thomas Fraser, FISHER, Paul, LEVELL, Peter, LOW, Hamish, MPCs through COVID : spending, saving and private transfers, IFS Working Paper, 2020/35 - https://hdl.handle.net/1814/73110
Retrieved from Cadmus, EUI Research Repository
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.
Additional information:
Published online: 20 October, 2021
Cadmus permanent link: https://hdl.handle.net/1814/73110
Full-text via DOI: 10.1920/wp.ifs.2020.3520
External link: https://ifs.org.uk/publications/15128
Series/Number: IFS Working Paper; 2020/35
Publisher: Institute for Fiscal Studies
Keyword(s): COVID-19 Spending MPC Crowding out
Initial version: https://hdl.handle.net/1814/73108; https://hdl.handle.net/1814/73109