01974cas a2200313 a 4500 AALejournalIMF022513 230101c9999 xx r poo 0 0eng d 5.00 USD 9798400203466 1018-5941 BD-DhAAL BD-DhAAL Albuquerque, Bruno. Financial Concerns and the Marginal Propensity to Consume in COVID Times : Evidence from UK Survey Data / Bruno Albuquerque, Georgina Green. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (52 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We study how household concerns about their future financial situation may affect the marginal propensity to consume (MPC) during the COVID-19 pandemic. We use a representative survey of UK households to compute the MPC from a hypothetical transfer of pound 500. We find that household expectations play a key role in determining differences in MPCs across households: households concerned about not being able to make ends meet have a 20% higher MPC than other households. Our findings suggest that policies targeted to vulnerable and financially distressed households may prove more effective in stimulating demand than providing stimulus payments to all households. Mode of access: Internet Consumer Economics imf Fiscal Policy imf Macroeconomics imf Saving imf Wealth imf Green, Georgina. IMF Working Papers; Working Paper ; No. 2022/047 Full text available on IMF http://elibrary.imf.org/view/journals/001/2022/047/001.2022.issue-047-en.xml IMF e-Library