Author： Amuedo-Dorantes Catalina Pozo Susan
Publisher： American Economic Association
ISSN： 0002-8282
Source： The American Economic Review, Vol.101, Iss.3, 2011-05, pp. : 582-587
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
Due to inadequate savings and binding borrowing constraints, income volatility can make households in developing countries particularly susceptible to economic hardship. We examine the role of remittances in either alleviating or increasing household income volatility using Mexican household level data over the 2000 through 2008 period. We correct for reverse causality and endogeneity and find that while income smoothing does not appear to be the main motive for sending remittances in a non-negligible share of households, remittances do indeed smooth household income on average. Other variables surrounding income volatility are also considered and evaluated.
Related content
Consumption and income smoothing
By Busato Francesco Chiarini Bruno Marzano Elisabetta
Applied Economics, Vol. 40, Iss. 17, 2008-09 ,pp. :
Access to resources
Recommend
Saving and income smoothing: Evidence from panel data
European Economic Review, Vol. 41, Iss. 7, 1997-07 ,pp. :
Sign reversal in the relationship between income smoothing and cost of debt
JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Vol. 45, Iss. 1-2, 2018-01 ,pp. :