Closely following the seminal contribution of Jappelli and Pistaferri (2014) - based on Italian household survey data - we employ data of 22 European countries to assess the role of heterogeneity of the marginal propensity to consume (MPC) for fiscal policy in the Euro area. We document an...

This study provides a critical assessment of various fiscal policy instruments - including direct public job creation, active labour market and care policies, social protection measures and tax reforms - and their effectiveness in supporting the most vulnerable groups in the labour market....