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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (45741)	9/9/2010 1:26:52 PM
From: TimF	Read Replies (1) \| Respond to of 71588

There is no data about the marginal dollar propensity to spend under the current conditions, so the data shows no such thing. Even for the more general case, as the average under all conditions, you have presented no data about the marginal dollar (not sure you presented any about the overall percentage either, but there is no need to as that point is accepted by both of us).

To: DuckTapeSunroof who wrote (45741)	9/9/2010 2:29:41 PM
From: TimF	Respond to of 71588

...The evidence is mixed, but seems to suggest that I was wrong. In "Do the Rich Save More?", economists Karen Dynan, Jonathan Skinner and Stephen Zeldes found a strong relationship between personal savings and income. However, other research suggests the opposite conclusion. Julia Lynn Coronado, Joseph Lupton and Louise Sheiner of the Federal Reserve studied (PDF) the effects of the 2003 tax cuts' child credit and found that the rich were actually more likely to spend most of the credit. Most of this is due to the fact that high earners were less likely to have to pay off debt: Matthew Shapiro and Joel Slemrod did a similar study on personal income tax rebates from the 2001 tax cuts, and also found that the rich spent more: voices.washingtonpost.com