Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/236483
Authors: 
Angelucci, Manuela
Chiapa, Carlos
Prina, Silvia
Rojas, Irvin
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14452
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study how 3,534 beneficiaries of PROSPERA, Mexico's cash transfer program, smooth food consumption around the transfer payday, an anticipated and transitory income shock. We find that food consumption and food security do not change around the transfer payday, including for recipients with impatient or time-inconsistent preferences and households with higher than median transfer dependence. Conversely, health and employment shocks (unexpected and less transitory income changes) reduce food security. The transfer's relative illiquidity may act as a commitment device, helping time-inconsistent and less experienced debit card holders smooth consumption.
Subjects: 
consumption smoothing
permanent income hypothesis
payday
JEL: 
D12
D91
E21
I12
I38
Document Type: 
Working Paper

Files in This Item:
File
Size
452.13 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.