Remittances and the Dutch disease

Arbeitspapier

Using data for El Salvador and Bayesian techniques, we develop and estimate a two-sector dynamic stochastic general equilibrium model to analyze the effects of remittances in emerging market economies. We find that, whether altruistically motivated or otherwise, an increase in remittance flows leads to a decline in labor supply and an increase in consumption demand that is biased toward nontradables. The higher nontradable prices serve as incentive for an expansion of that sector, culminating in reallocation of labor away from the tradable sector; a phenomenon known as the Dutch disease. Quantitative results also indicate that remittances improve households'welfare as they smooth income flows and increase consumption and leisure levels. A Bayesian vector autoregression analysis provides results that are consistent with the dynamics of the model.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 2007-8a

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Macroeconomic Aspects of International Trade and Finance: General ; Open Economy Macroeconomics ; Economic Development: General
• Thema: Dutch disease ; real exchange rate ; remittances ; Rücküberweisung (Migranten) ; Dutch Disease ; Kaufkraftparität ; Theorie ; El Salvador

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Acosta, Pablo A. ; Lartey, Emmanuel K. K. ; Mandelman, Federico S.
• Ereignis: Veröffentlichung
• (wer): Federal Reserve Bank of Atlanta
• (wo): Atlanta, GA
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/70606
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ