MPCs through COVID: spending, saving and private transfers [report]

Hamish Low, Peter Levell, Paul Fisher, Thomas Crossley
2020 unpublished
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
more » ... 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.
doi:10.1920/wp.ifs.2020.3520 fatcat:uxpndlcugzf5zgbuuvm5okylom