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

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  • Tigran A. Melkonyan
  • Mr. David A. Grigorian
  • J. Scott Shonkwiler

Abstract

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.

Suggested Citation

  • Tigran A. Melkonyan & Mr. David A. Grigorian & J. Scott Shonkwiler, 2008. "Garbage In, Gospel Out? Controlling for the Underreporting of Remittances," IMF Working Papers 2008/230, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2008/230
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    Cited by:

    1. Michael Clemens and Timothy N. Ogden, 2014. "Migration as a Strategy for Household Finance: A Research Agenda on Remittances, Payments, and Development- Working Paper 354," Working Papers 354, Center for Global Development.
    2. Michael Clemens and David McKenzie, 2014. "Why Don't Remittances Appear to Affect Growth? - Working Paper 366," Working Papers 366, Center for Global Development.
    3. Michael A. Clemens & David McKenzie, 2018. "Why Don't Remittances Appear to Affect Growth?," Economic Journal, Royal Economic Society, vol. 128(612), pages 179-209, July.

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