Cited by 32Monetary Policy and Economic ImpactEconomic Theory and PolicyEconomic theories and models

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A Simple Mapping from MPCs to MPXs

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Laibson, David, Maxted, Peter, Moll, Benjamin·2022·SSRN Electronic Journal

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Crossref · 10.3386/w29664

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  • Using the scaling methodology of Laibson et al. (2022), the model-consistent notional MPC in the quarter following the tax rebate ranges between 7.8 and 11.4%, compared with 15.9-23.4% in the original estimation of Broda and Parker (2014b).

    “Using the scaling methodology of Laibson et al. (2022), we estimate that the model-consistent, or 'notional', MPC in the quarter following the tax rebate ranges between 7.8 and 11.4%, compared with 15.9-23.4% in the original estimation of Broda and Parker (2014b).”

    From Revisiting Event-Study Designs: Robust and Efficient Estimation (2024) · cites this paper as Laibson et al. (2022)

  • Typical estimates of the quarterly MPX for all expenditures range from 50 to 90%, while estimates of the quarterly MPX for non-durable expenditure range from 15 to 25%.

    “The estimates based on BP in column 1 are closely in line with the literature: typical estimates of the quarterly MPX for all expenditures range from 50 to 90%, while estimates of the quarterly MPX for non-durable expenditure range from 15 to 25%.”

    From Revisiting Event-Study Designs: Robust and Efficient Estimation (2024) · cites this paper as Laibson et al. (2022)

  • Using the scaling methodology of Laibson et al. (2022), the model-consistent notional marginal propensity to consume in the quarter following the tax rebate ranges between 7.8% and 11.4%.

    “Using the scaling methodology of Laibson et al. (2022), we estimate that the model-consistent, or 'notional,' MPC in the quarter following the tax rebate ranges between 7.8% and 11.4%, compared with 15.9% to 23.4% in the original estimation of Broda and Parker (2014).”

    From Revisiting event study designs: robust and efficient estimation (2022) · cites this paper as Laibson et al. (2022)

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References 34 · Cited by 32

Metadata

Authors
Laibson, D., Maxted, P., & Moll, B.
Affiliations
National Bureau of Economic Research (US)
Corresponding author
Laibson, David
Venue
SSRN Electronic Journal
Published
2022-01
ISSN
1556-5068 (ISSN-L)
OpenAlex
W4205943561
Cited by
32
References
34
Citations by year
2026: 1 · 2025: 5 · 2024: 14 · 2023: 7 · 2022: 3
Type
posted content
Language
en
Open access
Locations
  • SSRN Electronic Journal (publishedVersion)
  • National Bureau of Economic Research (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic theories and models
Keywords
marginal propensity to consume, durable goods, consumption models, real interest rates, model mapping

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