Financial Concerns and the Marginal Propensity to Consume in COVID Times: Evidence from UK Survey Data

2021 ◽  
Author(s):  
Bruno Albuquerque ◽  
Georgina Green
Keyword(s):  
Survey Data ◽  
Marginal Propensity To Consume ◽  
Marginal Propensity

scholarly journals Understanding Consumption Behavior: Evidence from Consumers' Reaction to Shopping Vouchers

2017 ◽  
Vol 9 (1) ◽  
pp. 137-153 ◽  
Author(s):  
Kamhon Kan ◽  
Shin-Kun Peng ◽  
Ping Wang
Keyword(s):  
Survey Data ◽  
Significant Role ◽  
Fiscal Stimulus ◽  
Consumption Behavior ◽  
Voucher Program ◽  
Marginal Propensity To Consume ◽  
Marginal Propensity

This paper advances our understanding of consumption behavior using the 2009 Taiwan Shopping Voucher Program. This program was universal and well publicized, and its payment to each individual was medium-sized. Based on survey data, it is found that the marginal propensity to consume is about one quarter, which is comparable to findings obtained by previous studies on consumers' response to fiscal stimulus payments. Further, vendors' discounts for voucher users played a significant role in boosting the effectiveness of the program. (JEL D12, E21, E62)

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”.

scholarly journals Helicopter money in Europe: New evidence on the marginal propensity to consume across European households

2020 ◽  
Vol 195 ◽  
pp. 109416 ◽  
Author(s):  
Katharina Drescher ◽  
Pirmin Fessler ◽  
Peter Lindner
Keyword(s):  
Marginal Propensity To Consume ◽  
Marginal Propensity ◽  
New Evidence

Effects of zero rating value added tax on government revenue in Namibia

2015 ◽  
Vol 6 (4) ◽  
pp. 343-355 ◽  
Author(s):  
Ojijo Odhiambo ◽  
John E. Odada
Keyword(s):  
Aggregate Demand ◽  
National Income ◽  
Value Added ◽  
Disposable Income ◽  
Government Revenue ◽  
Content Type ◽  
Goods And Services ◽  
Marginal Propensity To Consume ◽  
Long Run ◽  
Marginal Propensity

Purpose – The Government of Namibia has traditionally used fiscal (especially tax) policy as an instrument for annual budget formulation. Marginal tax rates for profits and various income brackets have been changed back and forth in response to changes in economic conditions. However, to date, no attempt has been made to evaluate the effectiveness of these reforms in achieving the broad national economic goals, in general, and the potential effects on government revenue in the short, medium and long-run periods, in particular. The purpose of this paper is to fill this information gap by analysing the implication of the 2008 zero-rating of value added tax (VAT) on basic commodities for aggregate demand and government revenue. Design/methodology/approach – The study uses an analytical framework based on economic theory which posits that in an open economy, which trades with the rest of the world, aggregate demand for goods and services is made up of consumption demand, investment demand, government demand and net exports and that real sector equilibrium is attained when aggregate supply of goods and services is equal to aggregate demand for goods and services. Findings – Using the Namibia Household Income and Expenditure Survey results, the annual loss in government revenue attributable to this policy is, ceteris paribus, estimated to be N$310.4 million. With a marginal propensity to consume out of disposable income of 0.89, total expenditure by households on goods and services is likely to increase by N$276.3 million per annum. In the medium-to-long-run, national income will have increased by N$303.9 million per annum. Taxes which are responsive to changes in the level of national income will have increased by N$85.7 million, compensating for just over one quarter of the estimated loss in government revenue of N$310.4 million. Research limitations/implications – The study has used a partial equilibrium model as opposed to computable general equilibrium model, which provides a consistent framework that meets most of the sectoral and institutional data requirements for the simple reason that a social accounting matrix which can be used readily to connect data from different sources, such as national accounts and household surveys and would thus have been ideal model for analysing the impacts of the VAT tax reform has not been developed for Namibia. Practical implications – The paper provides a number of practical policy options available for government including, but not limited to, increasing direct taxes, VAT rate on specific (luxury) goods and services and statutory VAT rate on all other commodities not zero-rated, other taxes such as taxes; and borrowing from external sources. Social implications – It is established that zero-rating VAT on all the basic commodities in 2008 reduces the VAT paid by all Namibian households by N$310.4 million per year, which represents the annual increase in the disposable income of all households. And with a marginal propensity to consume out of disposable income of 0.89, total expenditure by households on goods and services will increase by N$276.3 million per year. Originality/value – This paper presents the first attempt at evaluating the effectiveness of tax (VAT) policy reforms in Namibia in achieving the broad national economic goals, in general, and the potential effects on government revenue in the short, medium and long-run periods, in particular.

Reported MPC and Unobserved Heterogeneity

2020 ◽  
Vol 12 (4) ◽  
pp. 275-297
Author(s):  
Tullio Jappelli ◽  
Luigi Pistaferri
Keyword(s):  
Unobserved Heterogeneity ◽  
Negative Relationship ◽  
Fiscal Policies ◽  
Regression Methods ◽  
Household Resources ◽  
Italian Survey ◽  
Marginal Propensity To Consume ◽  
Strong Negative Relationship ◽  
Marginal Propensity ◽  
The Relationship

Panel data on reported marginal propensity to consume in the 2010 and 2016 Italian Survey of Household Income and Wealth uncover a strong negative relationship between cash on hand and MPC. Even though the relationship is attenuated when using regression methods that control for unobserved heterogeneity, the amount of bias is moderate. MPC estimates are used to evaluate the effectiveness of revenue-neutral fiscal policies targeting different parts of the distribution of household resources. (JEL E21, E62, G51)

Aggregate Demand, Vertical Specialization and Growth Accounting

2016 ◽  
Vol 07 (03) ◽  
pp. 1650016
Author(s):  
Hubert Escaith
Keyword(s):  
Income Elasticity ◽  
Developing Economies ◽  
Supply And Demand ◽  
Aggregate Demand ◽  
International Perspective ◽  
Growth Accounting ◽  
Marginal Propensity To Consume ◽  
Marginal Propensity ◽  
Global Economic Governance

Global manufacturing and international supply chains have changed the way trade and economic growth are understood today. Recent statistical advances suggest new ways of looking at growth accounting when global value chains (GVCs) — articulating supply and demand chains from an international perspective — are taken into consideration. The method is applied to the G-20 countries, a group of leading developed and developing economies that took a prominent role in fostering and managing global economic governance. The demand dynamics is first analyzed through a growth-accounting decomposition, then through the long term determinants of income elasticity of imports and the household marginal propensity to consume imported products.

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