{"id":460,"date":"2026-04-27T17:33:09","date_gmt":"2026-04-27T16:33:09","guid":{"rendered":"https:\/\/www.farhi-innovation-lab.fr\/?post_type=publication&#038;p=460"},"modified":"2026-04-27T17:33:10","modified_gmt":"2026-04-27T16:33:10","slug":"five-facts-about-mpcs-evidence-from-a-randomized-experiment","status":"publish","type":"publication","link":"https:\/\/www.farhi-innovation-lab.fr\/fr\/publication\/five-facts-about-mpcs-evidence-from-a-randomized-experiment\/","title":{"rendered":"Five Facts about MPCs: Evidence from a Randomized Experiment"},"content":{"rendered":"<p class=\"wp-block-paragraph\">We present five facts from an experiment on the marginal propensity to consume (MPC) out of transitory<br>transfers: (1) the one-month MPC on a cash-like transfer is 23%; (2) it is substantially higher (61%) on a<br>transfer administered via a card where the remaining funds expire after three weeks, inconsistent with money fungibility; (3) the consumption response is concentrated in the first three weeks; (4) MPCs vary with household characteristics, but are high even for the liquid-wealthy; (5) the unconditional MPC distribution exhibits large variation. Our findings inform the design of stimulus policies and pose challenges to existing macroeconomic models.<\/p>","protected":false},"excerpt":{"rendered":"<p>We present five facts from an experiment on the marginal propensity to consume (MPC) out of transitorytransfers: (1) the one-month MPC on a cash-like transfer is 23%; (2) it is substantially higher (61%) on atransfer administered via a card where the remaining funds expire after three weeks, inconsistent with money fungibility; (3) the consumption response [&hellip;]<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":true},"thematique":[],"type-de-publication":[],"class_list":["post-460","publication","type-publication","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Five Facts about MPCs: Evidence from a Randomized Experiment - Farhi Innovation Lab<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Five Facts about MPCs: Evidence from a Randomized Experiment - Farhi Innovation Lab\" \/>\n<meta property=\"og:description\" content=\"We present five facts from an experiment on the marginal propensity to consume (MPC) out of transitorytransfers: (1) the one-month MPC on a cash-like transfer is 23%; 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