Working Papers in full text
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
All
Other research-related activities and publications of the IMF can be found at IMF Research
|
Free Email Notification
Receive emails when we post new
items of interest to you.
Subscribe or
Modify your profile
|
|
|
|
Microeconomic Implications of Remittances in an Overlapping Generations Model with Altruism and Self-Interest
|
Author/Editor: |
Grigorian, David A. | Melkonyan, Tigran A. |
| Authorized for Distribution: |
January 1, 2008 |
|
Electronic Access: |
Free Full Text (PDF file size is 429KB)
Use the free Adobe Acrobat Reader to view this PDF file.
|
|
|
|
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: The paper explicitly models the dynamic strategic aspects of the interaction between the migrant and the remittance-receiving relative(s), with the migrant behaving as a Stackelberg leader. It is also different from other formalizations of remittance behavior in its treatment of the two parties' interaction to realize potential gains from exchange. We demonstrate that when the migrant and the relative(s) cooperate to maximize the joint utility of the household, this leads to higher level of remittances as well as investment and hours worked by the relative(s). We use data from Armenia to test our predictions regarding implications of remittances flows on behavior of receiving households. Consistent with our predictions, remittance-receiving households work fewer hours and spend less on the education of their children. While saving more, these households are not leveraging their savings to borrow from the banking system to expand their business activities. This evidence suggests that the benefits of remittances might be overstated and emphasizes the importance of measuring their impact in a general- rather than a partial-equilibrium context.
|
|
|
|
Series: |
Working Paper No. 08/19 |
|
Subject(s): |
Workers remittances | Armenia | Labor supply |
|
Author's keyword(s): |
Remittances
| migration
| microeconomics of remittances
| Armenia
|
|
|
|
|
| |
Published: |
|
January 1, 2008 |
|
|
|
|
| |
|
|
|
|
Format: |
|
Paper |
| |
Stock No: |
|
WPIEA2008019 |
|
Pages: |
|
41 |
| |
Price: |
|
US$18.00
|
|
|
|
|
|
|
