Jappelli, Tullio; Pistaferri, Luigi - In: American Economic Journal: Macroeconomics 6 (2014) 4, pp. 107-36
We use responses to survey questions in the 2010 Italian Survey of Household Income and Wealth that ask consumers how much of an unexpected transitory income change they would consume. The marginal propensity to consume (MPC) is 48 percent on average. We also find substantial heterogeneity in...