https://macropaperwarehouse.com/authors/kozo-ueda/Kozo UedaHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/marginal-propensity-to-consume-and-personal-characteristics-evidence-from-bank-transaction-data-and-survey/https://macropaperwarehouse.com/papers/marginal-propensity-to-consume-and-personal-characteristics-evidence-from-bank-transaction-data-and-survey/<p><strong>Research Question.</strong> This paper asks whether heterogeneity in the marginal propensity to consume (MPC) stems from <em>temporary circumstances</em> (e.g., transient wealth shocks that tighten liquidity) or <em>persistent personal characteristics</em> (e.g., high time discount rates or strong risk aversion that permanently shape saving behavior). Because liquidity constraints are endogenous — they can reflect either bad luck or impatient preferences — disentangling these two sources requires independently measured individual characteristics, which are not available in standard transaction datasets.</p>