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The Impact of domestic remittances on Households' Income Distribution in a context of Global Food Crisis

Author

Listed:
  • Elisa, Dienesch
  • Sadibou, Fall Cheickh Sadibou
  • Laetitia, Leroy

Abstract

This paper aims to assess how internal urban-rural remittances can soften macroeconomics shocks in a developing country. This question is of particular interest given the recent food prices crisis between 2007 and 2008 and this paper is particularly interested in evaluating if internal remittances can alleviate income inequalities linked to agricultural prices variation. This study has two objectives: to design a computable general equilibrium model introducing micro-founded internal transfers in order to capture all the redistributive channels and, as a result, to measure the potential impact of these internal transfers. We choose to focus on Senegal and we build an original single-country CGE model that reproduce public redistribution policy and internal transfers, both calibrated on a recent social accounting matrix dated from 2006. We base our work on three important Senegalese householdsísurveys: ESAM I (1995), ESAM II (2002) and ESPS (2005) which provide speciÖc data on disaggregated households, such as spending and income structures, internal transfers and some data on migration. Using all data available, this original model is supposed to recreate all theoretical mechanisms of redistribution, like public transfers as well as private transfers and their interactions.

Suggested Citation

  • Elisa, Dienesch & Sadibou, Fall Cheickh Sadibou & Laetitia, Leroy, 2011. "The Impact of domestic remittances on Households' Income Distribution in a context of Global Food Crisis," Conference papers 332044, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332044
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    References listed on IDEAS

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