Data and code for: "Consumption Heterogeneity: Micro Drivers and Macro Implications"
Principal Investigator(s): View help for Principal Investigator(s) Edmund Crawley, Board of Governors of the Federal Reserve System; Andreas Kuchler, Danmarks Nationalbank
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| ConsumptionHeterogeneityCodeForPublication | 01/10/2022 09:39:AM |
Project Citation:
Crawley, Edmund, and Kuchler, Andreas. Data and code for: “Consumption Heterogeneity: Micro Drivers and Macro Implications.” Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-12-09. https://doi.org/10.3886/E150141V1
Project Description
Summary:
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Replication code for "Consumption Heterogeneity: Micro Drivers and Macro Implications"
We document heterogeneity in the marginal propensity to consume (MPC) across household characteristics relevant to understanding heterogeneous agent models and monetary policy transmission. We find a strong negative relationship between household liquid wealth and MPC. We show that household liquid wealth predicts MPC closely for every other household characteristic we look at. We use a new empirical method that overcomes sources of bias found in the existing literature, along with administrative data from Denmark that allows us to identify heterogeneous behavior. We use our results to analyze monetary policy transmission mechanisms in both Denmark and the United States.
We document heterogeneity in the marginal propensity to consume (MPC) across household characteristics relevant to understanding heterogeneous agent models and monetary policy transmission. We find a strong negative relationship between household liquid wealth and MPC. We show that household liquid wealth predicts MPC closely for every other household characteristic we look at. We use a new empirical method that overcomes sources of bias found in the existing literature, along with administrative data from Denmark that allows us to identify heterogeneous behavior. We use our results to analyze monetary policy transmission mechanisms in both Denmark and the United States.
Scope of Project
Subject Terms:
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Consumption Dynamics;
MPC;
Consumption Dynamics;
MPC;
monetary policy
JEL Classification:
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D12 Consumer Economics: Empirical Analysis
D31 Personal Income, Wealth, and Their Distributions
E21 Macroeconomics: Consumption; Saving; Wealth
D12 Consumer Economics: Empirical Analysis
D31 Personal Income, Wealth, and Their Distributions
E21 Macroeconomics: Consumption; Saving; Wealth
Geographic Coverage:
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United States,
Denmark
Time Period(s):
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2004 – 2015
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