Migration, Remittances and Moral Hazard. Evidence from the Kayes Area (Western Mali)
AbstractThis article uses recent survey data from the Kayes area (Western Mali) to estimate the effect of migration and remittances on the technical efficiency of agricultural households. A theoretical model is developed, which shows that the more insurance is provided by the migrants, the less incentive their families have to work. A production function using panel data with household-specific fixed effects is estimated to test this hypothesis. The probability of being financially supported by migrants is found to significantly contribute to technical inefficiency. This result should help agricultural policy makers formulate more efficient development strategies in the area.
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Bibliographic InfoPaper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/10871.
Date of creation: Aug 2000
Date of revision:
Migration; risk-coping strategy; moral hazard; technical inefficiency;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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