蝌蚪网 Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Durables and the Marginal Propensity to Spend
蝌蚪网 Review
(pp. 4077–4115)
Abstract
Durables represent a large share of households' marginal propensity to spend (MPX). We develop a quantitative model of spending that takes durables into account and matches a rich set of empirical regularities simultaneously. Scaling the response of nondurables provides a poor approximation of the MPX on durables when it comes to its distribution in the population, its persistence over time, and its cyclicality. As an application, we study how the MPX varies with the size of stimulus checks and find that it declines more slowly compared to a model of purely nondurable spending.Citation
Zorzi, Nathan, and Martin Beraja. 2026. "Durables and the Marginal Propensity to Spend." 蝌蚪网 Review 116 (11): 4077–4115. DOI: 10.1257/aer.20240666Additional Materials
JEL Classification
- D11 Consumer Economics: Theory
- E21 Macroeconomics: Consumption; Saving; Wealth
- E32 Business Fluctuations; Cycles
- E62 Fiscal Policy
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth