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To implement the restrictions on childbearing, nearby governments present financial subsidies to households with a single youngster, and impose substantial penalties if a couple violates the population handle policies by getting an "out of quota" birth4. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may possibly obtain compensation for some links to items and solutions on this site. The transmission of earnings shocks into consumption can be quantified using the marginal propensity to consume . If MPCs are higher, a offered reduction in income leads to a massive reduction in consumption demand, and shocks are propagated all through the economy (Guerrieri et al. 2020).