Reported MPC in the presence of debt
Sala Lorda, Hector (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada)

Data:	2021
Resum:	We use information from the last wave of the Spanish Survey of Household Finances to study the influence of debt on self-reported marginal propensity to consume (MPC). We find an average MPC of 43% with indebted households having a smaller MPC than non-indebted households. This negative association increases along with the amount of debt. The MPC is lower for households that were subject to liquidity constraints in the previous year, and for those whose reference person is self-employed. The past relationship between income and consumption is also an important determinant of the MPC, as households that invest last year's savings, or hold them for the future, have a lower MPC. These findings are in line with the predictions of precautionary saving models.
Ajuts:	Agencia Estatal de Investigación PID2019-104723RB-I00
Drets:	Aquest material està protegit per drets d'autor i/o drets afins. Podeu utilitzar aquest material en funció del que permet la legislació de drets d'autor i drets afins d'aplicació al vostre cas. Per a d'altres usos heu d'obtenir permís del(s) titular(s) de drets.
Llengua:	Anglès
Document:	Working paper ; recerca
Matèria:	Debt ; Marginal propensity to consume ; Survey
Publicat a:	Economics letters, Vol. 205 (2021) , p. 109929, ISSN 0165-1765

adreça alternativa: https://www.econstor.eu/handle/10419/236241
DOI: 10.1016/j.econlet.2021.109929

13 p, 405.0 KB

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