TY  - BOOK
AU  -  Cooper, Russell
AU  -  Le Blanc, Julia
AU  -  Zhu, Guozhong
AU  - 2024
AU  - Ampudia, Miguel
TI  - MPC Heterogeneity and the Dynamic Response of Consumption to Monetary Policy
SN  - 1945-7707
PB  - American Economic Journal: Macroeconomics
KW  -  Saving
KW  -  Wealth
KW  - Household Finance
KW  - Household Saving
KW  - Macroeconomics: Consumption
KW  - Monetary Policy
N2  - This paper studies how household financial choices affect the impact of monetary policy on consumption. Based on micro data from four major euro area countries, we estimate key structural parameters using a simulated method of moments approach to match moments related to asset market participation rates, portfolio shares, and wealth-to-income ratios by education and country. The country-specific distributions of marginal propensities to consume (MPCs) out of income and financial wealth are not degenerate. Due to this MPC heterogeneity, monetary policy, operating through income and asset returns, has a differential impact on individuals within and across countries
UR  - https://www.aeaweb.org/articles?id=10.1257/mac.20210277
ER  -