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Remittances and household expenditure behaviour: Evidence from Senegal∗

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  • Randazzo, Teresa
  • Piracha, Matloob

Abstract

We use different econometric techniques, from propensity score matching to multinomial treatment methods, to assess the impact of internal and external remittances on several household budget shares in Senegal. When only considering the average impact of remittances on the household expenditure behaviour, we find an overall productive use of remittances. However, the impact of remittances disappears when the marginal spending behaviour is considered, i.e., households do not show a different consumption pattern with respect to their remittance status. The marginal spending behaviour therefore suggests that, in the decision on how to allocate expenditure, remittances are treated just as any other source of income.

Suggested Citation

  • Randazzo, Teresa & Piracha, Matloob, 2019. "Remittances and household expenditure behaviour: Evidence from Senegal∗," Economic Modelling, Elsevier, vol. 79(C), pages 141-153.
  • Handle: RePEc:eee:ecmode:v:79:y:2019:i:c:p:141-153
    DOI: 10.1016/j.econmod.2018.10.007
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    More about this item

    Keywords

    Remittances; Household expenditure behaviour; Propensity score matching; Multinomial treatment regression; Senegal;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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