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Mortality shocks and household consumption: the case of Mexico

Marek Šedivý (marek.sedivy@fsv.cuni.cz)
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Marek Šedivý: Charles University

Review of Economics of the Household, 2023, vol. 21, issue 4, No 7, 1289-1358

Abstract: 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.

Keywords: Consumption; Consumption smoothing; Death; Mortality (search for similar items in EconPapers)
JEL-codes: D12 D15 I15 O12 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s11150-022-09629-3

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