TY  - RPRT
        AU  - Angelucci, Manuela
AU  - Chiapa, Carlos
AU  - Prina, Silvia
AU  - Rojas, Irvin
        TI  - Transitory Income Changes and Consumption Smoothing: Evidence from Mexico
        PY  - 2021/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14452
        UR  - https://www.iza.org/publications/dp14452
        AB  - 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.
        KW  - permanent income hypothesis
KW  - consumption smoothing
KW  - payday
        ER  -