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Consumption and Income Seasonality in Thailand

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  • Paxson, Christina H

Abstract

Many households in developing countries rely on seasonal agriculture for their incomes. This paper investigates whet her household consumption expenditure tracks income across seasons. Wit h data from Thailand, the paper contrasts the seasonal consumption patterns of households with different seasonal income patterns and estimates the responsiveness of seasonal consumption to seasonal income. Little evidence is found that consumption tracks income over the course of the year. The findings suggest that observed seasonal consumption patterns are the result of seasonal variations in preferences or prices, common to all households, rather than an inability of households to use savings behavior to smooth consumptio n. Copyright 1993 by University of Chicago Press.

Suggested Citation

  • Paxson, Christina H, 1993. "Consumption and Income Seasonality in Thailand," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 39-72, February.
  • Handle: RePEc:ucp:jpolec:v:101:y:1993:i:1:p:39-72
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