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The reality of consumption: Comparing self-reported and observed marginal propensity to consume

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  • Ueda, Kozo

Abstract

Surveys are widely used in economic analyses. This study compares the self-reported and actual marginal propensity to consume by integrating survey with bank transaction data. The estimation results reveal no significant relationship between the two measures, casting a doubt on the use of self-reported consumption measures.

Suggested Citation

  • Ueda, Kozo, 2025. "The reality of consumption: Comparing self-reported and observed marginal propensity to consume," Economics Letters, Elsevier, vol. 247(C).
    • Handle: RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176525000163
    DOI: 10.1016/j.econlet.2025.112179
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    1. Olivier Coibion & Yuriy Gorodnichenko & Michael Weber, 2020. "How Did U.S. Consumers Use Their Stimulus Payments?," Working Papers 2020-109, Becker Friedman Institute for Research In Economics.
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    12. Kozo UEDA, 2024. "Inflation Expectations and Spending: Evidence from an Experiment and Bank Transaction Data in Japan," CIGS Working Paper Series 24-021E, The Canon Institute for Global Studies.
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    More about this item

    Keywords

    MPC; Survey; Measurement;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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