Transitory income changes and consumption smoothing: Evidence from Mexico

• 成果类型: Article
• 署名作者: Angelucci, Manuela; Chiapa, Carlos; Prina, Silvia; Rojas, Irvin
• 署名单位: University of Texas System; University of Texas Austin; Analysis Group Inc.; Northeastern University; Centro de Investigacion y Docencia Economicas A.C. (CIDE)
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2023.105013
• 发表日期: 2024
• 关键词: Consumption smoothing; permanent income hypothesis; Payday

摘要

We test if 3534 beneficiaries of PROSPERA, Mexico's cash transfer program, smooth food consumption before and after the date of the transfer receipt, and if consumption smoothing is costly. The transfer is an anticipated and transitory income shock and, thus, the PIH predicts that consumption should be smooth before and after its receipt. We find that food consumption does not change the days before and after the transfer date and we find no evidence that households bear costs to smooth consumption. The transfer's cost of access, which encompasses participants' distaste for using debit cards and costly ATM withdrawals, may help time-inconsistent and less experienced debit card holders smooth consumption.