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

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International Monetary Fund, Sep 1, 2008 - Business & Economics - 19 pages
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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.
 

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Contents

I Introduction
3
II Literature Review
5
III Econometric Model
6
IV Model Specification and Estimation
10
V Conclusions
13
Tables
15
References
17
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