Using detailed micro-data, this paper documents that households with lower income risk (and higher income levels …) exhibit a higher Marginal Propensity to Consume (MPC) in response to transitory income shocks, all else being equal. This … designed to account for the empirically observed negative correlation between income levels and income risk. This interaction …

We analyse the effect of shocks to housing wealth and income before and after the Great Recession. We combine datasets … containing information on expenditure, income, wealth and debt in a synthetic panel to understand how household indebtedness … affects the response to income and wealth shocks.We find evidence for both a housing wealth effect and income shocks …

decomposing disposable income into labour, property and transfer income is essential for understanding and forecasting consumption …. Finally, substantial crosscountry heterogeneity in marginal propensities to consume out of income and wealth components calls …

, income and consumption. We use panel regressions and an instrumental variable approach. First, our panel-based MPC estimates …

-expressed as a share of 2021-22 income- were larger than a typical recession, and heterogeneous, e.g., 3% in France and 8% in Italy …

more likely to enter forbearance, irrespective of income shocks. Mortgage payment suspension increases consumption and … savings, but effects differ across households. Low liquid wealth and income are associated with a higher marginal propensity …