Publication detail

Mortality shocks and household consumption: The case of Mexico

Author(s): Mgr. Marek Šedivý ,
Type: IES Working Papers
Year: 2020
Number: 22
ISSN / ISBN:
Published in: IES Working Papers 22/2020
Publishing place: Prague
Keywords: Consumption, Consumption smoothing, Death, Mortality
JEL codes: D12, D15, I15, O12
Suggested Citation: Šedivý, M. (2020) : “Mortality shocks and household consumption: The case of Mexico” IES Working Papers 22/2020. IES FSV. Charles University.
Abstract: We study the effect of within-household mortality on the evolution of household per capita consumption. Relying on a panel survey of Mexican households, we find that these households were capable of perfectly smoothing the shock into their consumption caused by the death of a household member. Our findings indicate that a household’s ability to smooth consumption depends neither on the characteristics of the deceased household member nor on the income of a particular household. We find no clear temporal pattern in the evolution of the shock caused by within-household mortality. Our results provide strong support for the hypothesis that the evolution of household consumption is not affected by within-household mortality.
Downloadable: wp_2020_22_sedivy

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