74While the ratio of wealth to permanent income is a very strong determinant of the MPC, the wide distribution of household incomes allows for even wealthy households to have high MPCs. Confirming a similar exercise in the benchmark model, we again find that among the one third of households with the highest MPCs, 51% are in the lowest wealth quintile, 32% are in the second wealth quintile, and 14% are in the middle wealth quintile. Even in a life cycle model in which wealth is highly correlated with both age and the marginal propensity to consume, there is still a significant fraction of “wealthy hand-to-mouth” households as found in Violante, Kaplan, and Weidner (2014).