Tag Archives: MPC

Will Housing Save the U.S. Economy? by Amir Sufi

Sufi has a short paper on this issue that is worth reading. My bottom line is that we need to temper our optimism on what  a housing recovery can do for the U.S. economy. I agree that house prices will continue … Continue reading

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Boosting Growth: The Spending and Debt Responses to Minimum Wage Hikes

Aaronson, Daniel, Sumit Agarwal, and Eric French have a recent AER paper on the consumption patterns of households with minimum wage recipients following minimum wage increases. Immediately following a minimum wage hike, household income rises on average by about $250 per … Continue reading

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Fiscal Policy and MPC Heterogeneity

Tullio Jappelli and Luigi Pistaferri have a recent paper called Fiscal Policy and MPC Heterogeneity. Here’s an interesting figure from it that shows how MPC varies by cash-on-hand: They aren’t the only ones who document MPC heterogeneity. Dynan, Skinner, Zeldes  have a … Continue reading

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