Consumption smoothing in Mexico over the life-cycle and the business cycle

This thesis examines household consumption behaviour over the life-cycle and the business cycle, using three rich Mexican datasets and several microeconometric techniques. The three chapters study how consumption is affected by: i) retirement; ii) intergenerational transfers; and iii) aggregate dyna...

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Main Author: Barbosa Rangel, Erika
Format: Thesis (University of Nottingham only)
Language:English
Published: 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/43472/
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author Barbosa Rangel, Erika
author_facet Barbosa Rangel, Erika
author_sort Barbosa Rangel, Erika
building Nottingham Research Data Repository
collection Online Access
description This thesis examines household consumption behaviour over the life-cycle and the business cycle, using three rich Mexican datasets and several microeconometric techniques. The three chapters study how consumption is affected by: i) retirement; ii) intergenerational transfers; and iii) aggregate dynamics. Chapter I investigates the empirical patterns in consumption around retirement using oportunidades dataset, in particular the existence of a ‘retirement-consumption puzzle’ among older households in Mexico. A detailed analysis of consumption dynamics and patterns in home production allows the chapter to conclude that there is no retirement consumption puzzle, which is consistent with augmented versions of the life-cycle model. In light of these findings, Chapter II estimates the effect of adult child transfers on the household consumption of their elderly parents using the Mexican Health Aging Study (MHAS). The estimates indicate that parents have a positive marginal propensity to consume out of transfers. The results also suggest that parents’ increases in expenditure correlate with permanent transfers rather than temporary transfers. Adding to this line of consumption research, Chapter III exploits the Mexican National Survey of Income and Expenditure (ENIGH) and investigates household consumption growth over the business cycle across income and consumption distributions. Aggregate fluctuations appear to affect household consumption uniformly across the majority of consumption distribution in Mexico. Nevertheless, the evidence also indicates that, compared to the highest income cohort, groups at the very bottom of the consumption and income distributions are more exposed to aggregate dynamics.
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spelling nottingham-434722025-02-28T13:48:35Z https://eprints.nottingham.ac.uk/43472/ Consumption smoothing in Mexico over the life-cycle and the business cycle Barbosa Rangel, Erika This thesis examines household consumption behaviour over the life-cycle and the business cycle, using three rich Mexican datasets and several microeconometric techniques. The three chapters study how consumption is affected by: i) retirement; ii) intergenerational transfers; and iii) aggregate dynamics. Chapter I investigates the empirical patterns in consumption around retirement using oportunidades dataset, in particular the existence of a ‘retirement-consumption puzzle’ among older households in Mexico. A detailed analysis of consumption dynamics and patterns in home production allows the chapter to conclude that there is no retirement consumption puzzle, which is consistent with augmented versions of the life-cycle model. In light of these findings, Chapter II estimates the effect of adult child transfers on the household consumption of their elderly parents using the Mexican Health Aging Study (MHAS). The estimates indicate that parents have a positive marginal propensity to consume out of transfers. The results also suggest that parents’ increases in expenditure correlate with permanent transfers rather than temporary transfers. Adding to this line of consumption research, Chapter III exploits the Mexican National Survey of Income and Expenditure (ENIGH) and investigates household consumption growth over the business cycle across income and consumption distributions. Aggregate fluctuations appear to affect household consumption uniformly across the majority of consumption distribution in Mexico. Nevertheless, the evidence also indicates that, compared to the highest income cohort, groups at the very bottom of the consumption and income distributions are more exposed to aggregate dynamics. 2017-07-19 Thesis (University of Nottingham only) NonPeerReviewed application/pdf en arr https://eprints.nottingham.ac.uk/43472/1/4197752.Thesis.Erika.Barbosa.Rangel.pdf Barbosa Rangel, Erika (2017) Consumption smoothing in Mexico over the life-cycle and the business cycle. PhD thesis, University of Nottingham. Consumer behaviour Home economics Adult children Family relationships Retirees Finance Personal Mexico
spellingShingle Consumer behaviour
Home economics
Adult children
Family relationships
Retirees
Finance
Personal
Mexico
Barbosa Rangel, Erika
Consumption smoothing in Mexico over the life-cycle and the business cycle
title Consumption smoothing in Mexico over the life-cycle and the business cycle
title_full Consumption smoothing in Mexico over the life-cycle and the business cycle
title_fullStr Consumption smoothing in Mexico over the life-cycle and the business cycle
title_full_unstemmed Consumption smoothing in Mexico over the life-cycle and the business cycle
title_short Consumption smoothing in Mexico over the life-cycle and the business cycle
title_sort consumption smoothing in mexico over the life-cycle and the business cycle
topic Consumer behaviour
Home economics
Adult children
Family relationships
Retirees
Finance
Personal
Mexico
url https://eprints.nottingham.ac.uk/43472/