The Link between International Remittances and Private Interhousehold Transfers
AbstractThe paper studies the link between international remittances and interhousehold transfers. Using a simple insurance model, it is shown that households transfer a large fraction of the remittance they receive from relatives abroad to other households. The effect of remittances on interhousehold transfers is empirically investigated using an urban household survey from Ethiopia. Consistent with the prediction of the model, remittance has a strong positive effect on the amount of transfer given, controlling for total household income and other covariates.
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Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 14/2012.
Length: 30 pages
Date of creation: 15 Mar 2012
Date of revision:
Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
international remittances; interhousehold transfers; mutual insurance; Ethiopia;
Find related papers by JEL classification:
- D19 - Microeconomics - - Household Behavior - - - Other
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
- R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
- NEP-IAS-2012-06-25 (Insurance Economics)
- NEP-MIG-2012-06-25 (Economics of Human Migration)
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