Tullio Jappelli|Luigi Pistaferri
Fiscal Policy and MPC Heterogeneity
Centre for Studies in Economics and Finance|University of Naples Federico II|National Bureau of Economic Research|Stanford University
use responses survey questions 2010 italian survey household income wealth ask consumers much unexpected transitory income change would consume marginal propensity consume mpc 48 percent average also find substantial heterogeneity distribution households low cashonhand exhibit much higher mpc affluent households agreement models precautionary savings income risk plays important role results important implications predicting household responses tax reforms redistributive policies jel d12 d14 e21 e62 h23 h24