MORTALITY SHOCKS AND HOUSEHOLD CONSUMPTION: THE CASE OF MEXICO
MORTALITY SHOCKS AND HOUSEHOLD CONSUMPTION: THE CASE OF MEXICO
| Author: | 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. |
| Download: | wp_2020_22_sedivy.pdf |
