Effect of remittances on household rent and property tax expenditure in Mexico: 2012 and 2014
DOI:
https://doi.org/10.35197/rx.13.03.2017.28.jmKeywords:
Engel's curve, consumption, spending distribution, livingAbstract
Rent and property tax expenses are indicators that show us whether a family lives in a rented or owned home, and inform us about their level of well-being and security. International and national studies mostly show an increase in the proportional expenditure of the aforementioned items due to the effect of remittances. In this document, the effect of remittances on rent and property tax expenses in Mexico will be analyzed by income level, through the National Household Income and Expenditure Surveys (ENIGH's) of 2012 and 2014, using the Engel Curve by ordinary least squares (OLS). It was found that the proportional expenses of rent and property tax decreased in the presence of remittances, except for the last quintile in 2012. The proportional expense on rent for households without remittances behaves like an inferior good and for households with remittances like a normal good. The proportional expenditure on property tax for households with and without remittances behaved like a normal good.
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