Consumer durables and the marginal propensity to consume out of permanent income shocks

2004 ◽  
Vol 58 (4) ◽  
pp. 319-341 ◽  
Author(s):  
Mario Padula
Keyword(s):  
Permanent Income ◽  
Income Shocks ◽  
Consumer Durables ◽  
Marginal Propensity To Consume ◽  
Marginal Propensity

The Response of Consumption to Unanticipated Changes in Income

2017 ◽  
Author(s):  
Tullio Jappelli ◽  
Luigi Pistaferri
Keyword(s):  
Insurance Markets ◽  
Income Shocks ◽  
Experimental Setting ◽  
Subjective Expectations ◽  
The Third ◽  
Marginal Propensity To Consume ◽  
Quasi Experimental ◽  
Marginal Propensity ◽  
The Impact ◽  
Joint Behavior

In this chapter we examine tests of the hypothesis that consumption will respond to unanticipated income changes and that the response will depend on the persistence of the shock and on the degree of imperfection in the credit and insurance markets. The literature has considered three approaches to estimating the effect of income shocks on consumption, that is, the marginal propensity to consume. One identifies episodes in which income changes unexpectedly and seeks to evaluate, in a quasi-experimental setting, how consumption reacts. A second estimates the marginal propensity to consume with respect to income shocks using the covariance restrictions imposed by theory on the joint behavior of consumption and income growth. The third estimates the impact of shocks by combining realizations and expectations of income or consumption in surveys where data on subjective expectations are available.

scholarly journals The Distribution of Wealth and the MPC: Implications of New European Data

2014 ◽  
Vol 104 (5) ◽  
pp. 107-111 ◽  
Author(s):  
Christopher D. Carroll ◽  
Jiri Slacalek ◽  
Kiichi Tokuoka
Keyword(s):  
Wealth Distribution ◽  
Wealth Inequality ◽  
Income Shocks ◽  
Income Dynamics ◽  
Aggregate Consumption ◽  
Distribution Of Wealth ◽  
Marginal Propensity To Consume ◽  
Transitory Shocks ◽  
Transitory Income ◽  
Marginal Propensity

Using a standard, realistically calibrated model of buffer-stock saving with transitory and permanent income shocks, we study how cross-country differences in the wealth distribution and household income dynamics affect the marginal propensity to consume out of transitory shocks (MPC). Across the 15 countries in our sample, we find that the aggregate consumption response ranges between 0.1 and 0.4 and is stronger (i) in economies with large wealth inequality, where a larger proportion of households has little wealth, (ii) under larger transitory income shocks, and (iii) when we consider households only use liquid assets (rather than net wealth) to smooth consumption.

scholarly journals Can Consumers Distinguish Persistent from Transitory Income Shocks?

2020 ◽  
Vol 130 (632) ◽  
pp. 2410-2437
Author(s):  
Jeppe Druedahl ◽  
Thomas H Jørgensen
Keyword(s):  
Imperfect Information ◽  
Panel Study ◽  
Income Shocks ◽  
Income Dynamics ◽  
Marginal Propensity To Consume ◽  
Transitory Income ◽  
Marginal Propensity ◽  
Novel Method ◽  
Consumption Saving ◽  
Robust Result

Abstract The degree to which consumers can distinguish persistent from transitory income shocks is paramount for consumption-saving dynamics. In particular, even a small amount of imperfect information causes a severe bias in conventional estimators of the marginal propensity to consume. We provide a novel method that can identify consumers’ degree of information by using panel data on income and consumption, even allowing for measurement error. Employing our method to data from the Panel Study of Income Dynamics, we find that households have almost perfect information. This robust result indicates that the conventional estimators of the marginal propensity to consume are on firm ground.

ANALISIS TINGKAT KONSUMSI DAN ELASTISITAS PENDAPATAN TERHADAP PENGELUARAN PANGAN DAN NON PANGAN KARYAWAN PT SALONOK LADANG MAS

2020 ◽  
Vol 3 (1) ◽  
Author(s):  
Rio Cahya Perdana ◽  
Tirsa Neyatri Bandrang
Keyword(s):  
Marginal Propensity To Consume ◽  
Marginal Propensity

Pola konsumsi karyawan memiliki perbedaan pada tingkat jabatan dan pendapatan sehingga berpengaruh terhadan tingkat konsumsinya serta pola konsumsi dan pengeluaran konsumsi suatu rumah tangga pada karyawan serta berbeda pula persentase penggunaan pendapatan yang digunakan untuk konsumsi. Tujuan dari penelitian ini adalah untuk mengetahui pola konsumsi karyawan PT Salonok Ladang Mas, sehingga dapat dilihat perbedaan pola konsumsi pangan antara karyawan pimpinan dengan karyawan pelaksana, selanjutnya dapat diketahui besarnya perubahan konsumsi pangan akibat perubahan pendapatan. Metode penelitian yang digunakan adalah secara purposive dengan alasan keragaman pendapatan yang sangat bervariasi. Pengambilan sampel karyawan sebanyak 14 sampel untuk karyawan pimpinan dan 90 sampel untuk karyawan pelaksana. Dengan metode simple random sampling. Jumlah sampel ditentukan dengan Metode Slovin. Metode di analisis dengan metode analisis deskriptif, menghitung persen rata-rata pengeluaran konsumsi pangan, Marginal Propensity to Consume (MPC), dan Elastisitas pendapatan. Hasil penelitian diperoleh kesimpulan bahwa tidak terdapat perbedaan yang signifikan mengenai pola konsumsi hanya yang membedakan adalah jumlah bahan pangan yang dikonsumsi dan besarnya pengeluaran konsumsi. Pengeluaran konsumsi pangan karyawan pelaksana lebih tinggi di bandingkan karyawan pimpinan, ini menunjukkan tingkat kesejahteraan karyawan pimpinan lebih tinggi dibandingkan karyawan pelaksana. tingkat pendapatan terhadap jumlah pengeluaran konsumsi pangan adalah “ inelastis”.

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