How does death of a household member affect consumption? The Case of Mexico
| Autor: | Mgr. Marek Šedivý |
|---|---|
| Rok: | 2019 - letní |
| Vedoucí: | doc. PhDr. Julie Chytilová Ph.D. |
| Konzultant: | |
| Typ práce: | Diplomová Ekonomická teorie |
| Jazyk: | Anglicky |
| Stránky: | 73 |
| Ocenění: | |
| Odkaz: | |
| Abstrakt: | In this thesis, we study the effect of death of a household member on the evolution of household per capita consumption. We provide multiple contributions to the available literature. We are the first to analyze all three waves of the Mexican Family Life Survey and use them to estimate the effect of within-household mortality on consumption. Furthermore, we assess to what extent this effect depends on the characteristics of the deceased household member. We also provide evidence on the persistence of the shock into consumption. We rely on a fixed-effects model. We find that households are capable of perfectly smoothing shocks into consumption caused by within-household mortality. However, we find evidence indicating that the effect of withinhousehold mortality on consumption is likely to depend on the characteristics of the affected household. We consider multiple robustness checks. Based on these we conclude that our findings are robust against variations in the specification of our model. |
