"Data and Code for: "Reported MPC and Unobserved Heterogeneity"

Panel data on reported marginal propensity to consume (MPC) in the 2010 and 2016 Italy’s Survey of Household Income and Wealth uncover a strong negative relationship between cash-on-hand and MPC. Even though the relationship is attenuated when using regression methods that control for unobserved heterogeneity, the amount of bias is moderate. MPC estimates are used to evaluate <br>the effectiveness of revenue-neutral fiscal policies targeting different parts of the distribution of household resources<br>