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A Simple Mapping from MPCs to MPXs
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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
- Publisher
- National Bureau of Economic Research
- 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
- green
- doi.org
- 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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