Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/242894
Authors: 
Crossley, Thomas F.
Fisher, Paul
Levell, Peter
Low, Hamish
Year of Publication: 
2020
Series/Report no.: 
IFS Working Paper No. W20/35
Publisher: 
Institute for Fiscal Studies (IFS), London
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: 
COVID-19
spending
MPC
crowding out
JEL: 
D12
D14
E21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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