Abstract

The objective of this article is to study the impact of the cultural deep-rooted fondness in Mexico for festivities and celebrations on household spending behavior. Using an interdisciplinary approach, this work analyzes official records of expenditure related to festivities in Mexico. The study finds evidence of an abundant allocation of family economic resources to events such as family parties, festivals, parades, and civic and religious ceremonies. Some of the celebrations are held regularly, whereas others take place on special occasions in individuals’ lives. In either case, the result is a significant flow of spending to finance the appetite for revelry. This work concludes that, as a result of cultural factors, Mexican people are used to holding celebrations quite frequently. Those celebrations often involve conspicuous spending. Both the frequency and the ostentatious spending impact negatively on family finances for urban and rural households, the latter bearing the brunt of the burden because their average income is lower than that of the former.