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Factors That Drive Marginal Propensity to Consume
The main factors that drive the marginal propensity to consume (MPC) are the availability of credit, taxation levels, and consumer confidence. According to Keynesian economic theory, the ...
We can’t expect budget tax cuts to boost GDP growth all that much
Tax-cut beneficiaries are a small group with a lower than average propensity to use extra income for consumption, while ...
How equity investors can ride the post-Budget wave
Stable macros, a boost for domestic consumption, and attractive opportunities in select sectors are all valid investing ...
Booth School of Business3y
Paper Household balance sheets, consumption, and the economic slump
The average marginal propensity to consume (MPC) out of housing wealth is 5–7 cents with substantial heterogeneity across ZIP codes. ZIP codes with poorer and more levered households have a ...
International Monetary Fund8mon
Drivers of Post-COVID Private Consumption in the U.S.
Compared with pre-COVID estimates, the marginal propensity to consume out of housing wealth is substantially higher, which, together with large gains in housing prices, made the wealth effect a key ...