Table 2 Marginal propensity to consume... | Emerald Publishing

Table 2

Marginal propensity to consume

Unemployment insurance benefit parameter (⁠ $γ$ ⁠)	Implied new tax rate (⁠ $τ$ ⁠)	Implied marginal propensity to consume of employed	Implied marginal propensity to consume of unemployed
0.100	0.011	0.913	8.788
0.200	0.022	0.923	4.462
0.300	0.032	0.933	3.019
0.400	0.043	0.942	2.298
0.500	0.053	0.952	1.865
0.600	0.063	0.962	1.577
0.700	0.072	0.971	1.371
0.800	0.082	0.981	1.216
0.900	0.091	0.990	1.096
1.000	0.100	1.000	1.000

Unemployment insurance benefit parameter ( $γ$ )	Implied new tax rate ( $τ$ )	Implied marginal propensity to consume of employed	Implied marginal propensity to consume of unemployed
0.100	0.011	0.913	8.788
0.200	0.022	0.923	4.462
0.300	0.032	0.933	3.019
0.400	0.043	0.942	2.298
0.500	0.053	0.952	1.865
0.600	0.063	0.962	1.577
0.700	0.072	0.971	1.371
0.800	0.082	0.981	1.216
0.900	0.091	0.990	1.096
1.000	0.100	1.000	1.000

Note(s): Fixed parameters: employed probability (p) = 0.9; interest rate (r) = 0.04