Garbage In, Gospel Out? Controlling for the Underreporting of Remittances

Author/Editor:

David A. Grigorian ; J. Scott Shonkwiler ; Tigran A. Melkonyan

Publication Date:

September 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Empirical studies that use self-reported data on remittances to measure the latter's impact on microeconomic incentives mostly ignore the potential errors associated with reporting/measurement issues. An econometric procedure to control for these errors is developed and applied to household-level data from Armenia. We find evidence of systematic under-reporting of remittances. After controlling for this, we find a strong negative impact of remittances on incentives to work.

Series:

Working Paper No. 08/230

Subject(s):

English

Publication Date:

September 1, 2008

ISBN/ISSN:

9781451870886/1018-5941

Stock No:

WPIEA2008230

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

19

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