Among U.S. middle-class households, the marginal propensity to consume is either invariant to household wealth or a U …-shaped function thereof. In contrast, precautionary savings models predict that wealth reduces the marginal propensity to consume. We … saving and raises the marginal propensity to consume by shortening the effective planning horizon. …

This paper studies the heterogeneity of the marginal propensity to consume out of wealth using French household surveys …. We find decreasing marginal propensity to consume out of wealth across the wealth distribution for all net wealth … components. The marginal propensity to consume out of financial assets tends to be higher compared with the effect of housing …