Re: Estimating the surplus\Doug's question

[MICHAEL YATES <mikedjyates@xxxxxxx>]

MPC is marginal propensity to consume.  It is equal to the change in consumption divided by the change in income.  An MPC of .99 would tell us that as consumer income rises by a dollar, consumption rises by 99 cents.  One of 1.04 means that an increase in income of a dollar was associated with a rise in consumption of $1.04.

 

Michael Yates

----- Original Message -----

From: Mike Ballard

To: PEN-L@xxxxxxxxxxxxxxxx

Sent: Saturday, December 13, 2003 1:56 PM

Subject: Re: [PEN-L] Estimating the surplus\Doug's question

--- Doug Henwood <dhenwood@xxxxxxxxx> wrote:
The MPC was something like 104%
> measured over the whole cycle. It's been something
> like 99% since the early-2001 peak.

What does MPC stand for?

Mike B)



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Where parents do too much for their children,
the children will not do much for themselves.

ELBERT HUBBARD (1856-1915)
The Note Book of Elbert Hubbard
ed., Elbert Hubbard II
p. 193

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