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MPC Heterogeneity and Household Balance Sheets

Fagereng, Andreas; Holm, Martin B.; Natvik, Gisle James - 2018

We use sizeable lottery prizes in Norwegian administrative panel data to characterize households’ marginal propensities to consume (MPCs). Our main contribution is to document how MPCs vary with household characteristics and prize size, and how lottery prizes are spent and saved over time. We...

Persistent link: https://www.econbiz.de/10011887394

How Did U.S. Consumers Use Their Stimulus Payments?

Coibion, Olivier; Gorodnichenko, Yuriy; Weber, Michael - 2020

Using a large-scale survey of U.S. consumers, we study how the large one-time transfers to individuals from the CARES Act affected their consumption, saving and labor-supply decisions. Most respondents report that they primarily saved or paid down debts with their transfers, with only about 15...

Persistent link: https://www.econbiz.de/10012269580

Dynamic Spending Responses to Wealth Shocks: Evidence from Quasi-Lotteries on the Stock Market

Andersen, Asger Lau; Johannesen, Niels; Sheridan, Adam - 2021

How much and over what horizon do households adjust their consumption in response to stock market wealth shocks? We address these questions using granular data on spending and stock portfolios from a large bank and exploiting lottery-like variation in gains across investors with similar...

Persistent link: https://www.econbiz.de/10012657890

Heterogeneous Household Responses to Energy Price Shocks

Peersman, Gert; Wauters, Joris - 2022

We use survey evidence on reported spending in hypothetical energy price shock scenarios to study novel features of the price elasticity of energy demand and the marginal propensity to consume (MPC) after paying the energy bill. We find that the price elasticity is significantly larger for price...

Persistent link: https://www.econbiz.de/10014290067

Stimulus through Insurance: The Marginal Propensity to Repay Debt

Koşar, Gizem; Melcangi, Davide; Pilossoph, Laura; … - 2023

Using detailed micro data, we document that households often use "stimulus" checks to pay down debt, especially those with low net wealth-to-income ratios. To rationalize these patterns, we introduce a borrowing price schedule into an otherwise standard incomplete markets model. Because interest...

Persistent link: https://www.econbiz.de/10014377472

Gambling to Leapfrog in Status?

Friehe, Tim; Mechtel, Mario - 2013

This paper shows that households with positional concerns and convex status utility use gambling to attempt … Germany, proxying the status orientation of households by their expenditures for conspicuous consumption. Our empirical … results strongly indicate that households who care about status are more likely to participate in gambling and invest more in …

Persistent link: https://www.econbiz.de/10010292716

Conspicuous consumption and communism: Evidence from East and West Germany

Friehe, Tim; Mechtel, Mario - 2012

This paper investigates the influence of the political regime on the relative importance of conspicuous consumption. We use the separation of Germany into the communist GDR and the democratic FRG and its reunification in 1990 as a natural experiment. Relying on household data that are...

Persistent link: https://www.econbiz.de/10010288246

Hoarding of International Reserves : Mrs Machlup's Wardrobe and the Joneses

Cheung, Yin-Wong; Qian, Xingwang - 2021

Motivated by the observed international reserve hoarding behavior in the post-1997 crisis period, we explore the Mrs Machlup's wardrobe hypothesis and the related keeping-up-with-the-Joneses argument. It is conceived that, in addition to psychological reasons, holding a relatively high level of...

Persistent link: https://www.econbiz.de/10013316903

Status Concerns as a Motive for Crime?

Baumann, Florian; Friehe, Tim - 2013

This paper analyzes the implications of potential offenders caring about their relative status. We establish that … subjects' status concerns can result in multiple-equilibrium crime rates and may modify the standard comparative …

Persistent link: https://www.econbiz.de/10010293986

Distributive justice and social conflict in an AK model

Tsoukis, Chris; Itaya, Jun-ichi - 2019

(utilitarian and Rawlsian) of conflict resolution. Greater impatience, intensified status comparisons and negative consumption … externalities, greater wealth inequality and a decline in productivity exacerbate social conflict. Status comparisons and wealth …

Persistent link: https://www.econbiz.de/10012018292