Reported MPC and Unobserved Heterogeneity

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2020
Volume: 12
Issue: 4
Pages: 275-97

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Panel data on reported marginal propensity to consume in the 2010 and 2016 Italian Survey of Household Income and Wealth uncover a strong negative relationship between cash on hand and MPC. Even though the relationship is attenuated when using regression methods that control for unobserved heterogeneity, the amount of bias is moderate. MPC estimates are used to evaluate the effectiveness of revenue-neutral fiscal policies targeting different parts of the distribution of household resources.

Technical Details

RePEc Handle
repec:aea:aejpol:v:12:y:2020:i:4:p:275-97
Journal Field
General
Author Count
2
Added to Database
2026-01-25