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Remittances and household expenditure behaviour: Evidence from Senegal∗

Teresa Randazzo and Matloob Piracha ()

Economic Modelling, 2019, vol. 79, issue C, 141-153

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.

Keywords: Remittances; Household expenditure behaviour; Propensity score matching; Multinomial treatment regression; Senegal (search for similar items in EconPapers)
JEL-codes: D10 F24 O15 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.econmod.2018.10.007

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