IDEAS home Printed from https://ideas.repec.org/p/idb/wpaper/3113.html
   My bibliography  Save this paper

A Dynamic Analysis of Household Decision-Making: The Mexican Case

Author

Listed:
  • Alejandro Villagómez Amezcua
  • Andrés Zamudio

Abstract

In this paper we analyze the evolution of family structure, human capital accumulation and returns, labor force participation and household consumption and savings decisions for Mexican households. We use as theoretical framework the Life Cycle Model. Our analysis is based on a synthetic panel technique as proposed by Browning, Deaton and Irish (1985) that allows us to track the average behavior of cohorts over successive surveys. Mexico went through important demographic and socioeconomic changes between the mid-1970s and mid-1980s, simultaneously with the government`s implementation of different policies as well as some institutional changes, including an important birth control program and the expansion of educational opportunities. A reduction in fertility and an increase in the schooling of women are observed simultaneously with an increase in women`s labor force participation. Most of this process is dominated by age and cohort effects. In terms of consumption-saving decisions, we find that this reduction in the number of children and the increase in women`s labor force participation, reinforced by higher investment in education and higher rate of returns, have been correlated with higher saving rates for younger cohorts, particularly those where the head has higher educational levels.

Suggested Citation

  • Alejandro Villagómez Amezcua & Andrés Zamudio, 2000. "A Dynamic Analysis of Household Decision-Making: The Mexican Case," Research Department Publications 3113, Inter-American Development Bank, Research Department.
  • Handle: RePEc:idb:wpaper:3113
    as

    Download full text from publisher

    File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=R-415&pub_file_name=pubR-415.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jean-Jacques Laffont & Patrick Rey & Jean Tirole, 1998. "Network Competition: I. Overview and Nondiscriminatory Pricing," RAND Journal of Economics, The RAND Corporation, pages 1-37.
    2. Kessides, Ioannis N. & Willig, Robert D., 1995. "Restructuring regulation of the rail industry for the public interest," Policy Research Working Paper Series 1506, The World Bank.
    3. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, January.
    4. Milgrom, Paul, 1989. "Auctions and Bidding: A Primer," Journal of Economic Perspectives, American Economic Association, vol. 3(3), pages 3-22, Summer.
    5. Ricardo J. Caballero & Eduardo M. R. A. Engel, 1999. "Explaining Investment Dynamics in U.S. Manufacturing: A Generalized (S,s) Approach," Econometrica, Econometric Society, pages 783-826.
    6. Manuel Dussan, 1996. "Electric Power Sector Reform in Latin America and the Caribbean," IDB Publications (Working Papers) 46878, Inter-American Development Bank.
    Full references (including those not matched with items on IDEAS)

    More about this item

    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:idb:wpaper:3113. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Felipe Herrera Library). General contact details of provider: http://edirc.repec.org/data/iadbbus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.