IDEAS home Printed from https://ideas.repec.org/p/smx/wpaper/2014003.html
   My bibliography  Save this paper

Saving flows and debt payments along the life-cycle in Mexican households

Author

Listed:
  • Owen Eli Ceballos

    (El Colegio de México A.C)

Abstract

This paper provides a semi-parametric characterization of financial sources along Mexican families' life-cycles. A synthetic household panel is constructed by using seven household surveys for the 2000-2012 period, and to estimate a partially linear model of savings and of debt payments. Results show that Mexican families do use higher levels of credits at early ages and higher levels of savings when older. By the end of the life-cycle, households' savings flows are relatively high and not similar to those predicted by the life-cycle standard model. The paper also identifies that debt payments reach a maximum at a household head´s age of about 45 years old, which is 5 years earlier than the maximum of household´s income level and 15 years earlier than the maximum of its saving level. These results are in line with the previous knowledge that in Mexico there are important liquidity restrictions at the early stages of family live, and that households' precautionary savings show up after the maximum income flow is reached

Suggested Citation

  • Owen Eli Ceballos, 2014. "Saving flows and debt payments along the life-cycle in Mexican households," Working Paper Series Sobre México 2014003, Sobre México. Temas en economía.
    • Handle: RePEc:smx:wpaper:2014003
    as

    Download full text from publisher

    File URL: https://sobremexico.ibero.mx/docs/wp/WP_2014_003.pdf
    File Function: First version, 2014
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:smx:wpaper:2014003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Maria Alejandra Villegas Gutierrez (email available below). General contact details of provider: https://sobremexico.ibero.mx/es/publicaciones-y-datos/working-papers.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.