MORTALITY SHOCKS AND HOUSEHOLD CONSUMPTION: THE CASE OF MEXICO

MORTALITY SHOCKS AND HOUSEHOLD CONSUMPTION: THE CASE OF MEXICO

Autor: Mgr. Marek Šedivý
Typ: IES Working Papers
Rok: 2020
Číslo: 22
ISSN / ISBN:  
Publikováno v: IES Working Papers 22/2020
Místo vydání: Prague
Klíčová slova: Consumption, Consumption smoothing, Death, Mortality
JEL kódy: D12, D15, I15, O12
Citace: Šedivý, M. (2020) : “Mortality shocks and household consumption: The case of Mexico” IES Working Papers 22/2020. IES FSV. Charles University.
Abstrakt: 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.
Ke stažení: wp_2020_22_sedivy.pdf