might be unequal across households depending on the basket of goods they consume. Using a consumer price index for Mexico …, particularly China, on price growth between 2002 and 2017. I find that the trade shock impacted prices. Had import competition …-income households benefited more. Finally, I look at these results in the context of income inequality in Mexico, noting that overall …

shock drives consumption via both the collateral and housing wealth channels, a foreign housing demand shock operates mainly …

and 9 percent of a permanent income shock. Our estimates are in line with empirical estimates for the same dataset, that …

higher income and higher levels of consumption are affected more by this shock than households located towards the lower end … effect of this shock on aggregate output. …