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The Weight of Socioeconomic Factors in Mexican Households’ Consumption Adjustments Along the Business Cycle: A Comparative Analysis of the 1994 and 2008–2010 Crises

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  • Marisol López-Romero

    (Instituto de Ciencias Agrícolas, Universidad Autónoma de Baja California, Mexicali 21100, Mexico)

  • Stephanie Sophia Alva-Ruiz

    (Department of Economics, Instituto Técnologico Autonómo de México, Mexico City 01080, Mexico)

  • José Alejandro Roque-Jiménez

    (Instituto de Ciencias Agrícolas, Universidad Autónoma de Baja California, Mexicali 21100, Mexico)

Abstract

This study examined the socioeconomic factors influencing Mexican household consumption during the 1994 and 2010 crises. Using data from the National Survey of Household Income and Expenditure (ENIGH) from 1994 to 2012, we analyzed household expenditure elasticities for durable, semi-durable, and non-durable goods relative to income. We employed a linear regression model incorporating household head characteristics, including gender, education, and income level, to assess consumption adjustments. The results showed that during the 1994 crisis, low-income households reduced durable goods consumption less than expected. Non-durable goods consumption remained stable in both crises. Households led by women were less likely to cut spending on non-essential goods, while male-headed households with limited education adjusted consumption more sharply. These patterns suggest that external factors, such as remittances, helped sustain consumption among the poorest households. The findings emphasize the importance of understanding household resilience mechanisms during economic shocks. Further research is needed to optimize policy design and assess the social impacts of high economic integration.

Suggested Citation

  • Marisol López-Romero & Stephanie Sophia Alva-Ruiz & José Alejandro Roque-Jiménez, 2025. "The Weight of Socioeconomic Factors in Mexican Households’ Consumption Adjustments Along the Business Cycle: A Comparative Analysis of the 1994 and 2008–2010 Crises," Social Sciences, MDPI, vol. 14(4), pages 1-14, March.
    • Handle: RePEc:gam:jscscx:v:14:y:2025:i:4:p:190-:d:1617130
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    1. Moreno-Brid, Juan Carlos & Ros, Jaime, 2009. "Development and Growth in the Mexican Economy: An Historical Perspective," OUP Catalogue, Oxford University Press, number 9780195371161, Decembrie.
    2. Deaton, Angus S & Ruiz-Castillo, Javier & Thomas, Duncan, 1989. "The Influence of Household Composition on Household Expenditure Patterns: Theory and Spanish Evidence," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 179-200, February.
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