Latest / AI Economics Research Podcast
Federal Reserve: How Survey Wording Changes What We Know About Consumer Spending (Explained)
This episode unpacks a Federal Reserve working paper that reveals why economists get vastly different estimates of the Marginal Propensity to Consume (MPC) – how much people spend from an unexpected windfall – depending on how survey questions are phrased. Using a randomized survey experiment, researchers show that subtle differences between 'direct' and 'filtered' questions dramatically alter reported spending intentions, impacting our understanding of consumer behavior and policy effectiveness. For deeper insights, read the full paper at…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.