Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/242925 
Year of Publication: 
2021
Series/Report no.: 
IFS Working Paper No. W21/26
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
MPCs were directly elicited from a representative sample of UK adults in July 2020 using receipt of a hypothetical unanticipated, one-time income payment. Reported MPCs are modest, 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. Significant fractions of respondents report they would use a windfall to pay down debt, or that they would change their transfer payments to or from family and friends. The latter means that the aggregate MPC out of a stimulus payment need not equal the population-average MPC.
Subjects: 
spending
MPC
crowding out
COVID-19
JEL: 
D12
D14
E21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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