Abstract
Through the application of Bayesian Network methodology, this study delves into household financial well-being in Mexico over the 2018 – 2022 period. The foundational scenario involved vital variables such as poverty-induced vulnerability, household type, education of the household head, financial education, income source (i.e., formal or informal sector employment), financial asset management, and savings as the main variables influencing household financial well-being. Subsequently, each variable was extrapolated to measure its impact on the focal point of interest. Results show that income from informal sector employment, education of the household head, financial education, and savings emerge as statistically significant factors exerting the greatest influence on household financial well-being. Economic policy recommendations to address these influential factors are discussed.
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