We use nationally representative survey data from Mexico to compare households with savings accounts in formal …

Consumption baskets vary across households and inflation rates vary across goods. As a result, standard consumer price … unequal the distribution of aggregate consumption across households. Likewise, changes in observed nominal consumption … faced by a rich consumer located in the 80 to 90 percentile of the distribution of consumption expenditure. In most episodes …

countries. I focus on consumption and income responses: when price reforms take place, households modify consumption and … corrects potential biases in the estimation of own- and cross-price elasticities in consumption. I apply the method to an …. In particular, I show that allowing for consumption and income responses is a key element of an accurate empirical …

effects with a review of the relevant literature. The authors study consumption and income responses, labor market responses …