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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.
Authors
![Hamish Low](/sites/default/files/styles/square_desktop/public/2022-07/Hamish_Low.jpg?itok=SxQtBzSd)
Research Fellow University of Oxford
Hamish is the James Meade Professor of Economics at the University of Oxford, a Professorial Fellow of Nuffield College and a Research Fellow at IFS.
![Thomas Crossley](/sites/default/files/styles/square_desktop/public/2022-07/Tom%20Crossley.jpg?itok=8BNVWAtq)
Research Fellow University of Michigan
Tom is a Research Fellow at IFS, a Research Professor for the Institute for Social Research at the University of Michigan.
![Peter Levell](/sites/default/files/styles/square_desktop/public/2022-06/Peter_Levell.jpg?itok=QouDiSQD)
Associate Director
Peter joined in 2009. He has published several papers on the microeconomics of household spending and labour supply decisions over the life-cycle.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Paul Fisher
Working Paper details
- DOI
- 10.1920/wp.ifs.2020.3520
- Publisher
- The IFS
Suggested citation
Crossley, T et al. (2020). MPCs through COVID: spending, saving and private transfers. London: The IFS. Available at: https://ifs.org.uk/publications/mpcs-through-covid-spending-saving-and-private-transfers (accessed: 30 June 2024).
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