A Kaleckian model for understanding and responding to the economic policy challenges of remittances

Luis Alberto Alonso Gonzalez and Bruno Sovilla

International Review of Applied Economics, 2014, vol. 28, issue 6, 832-848

Abstract: In this work we construct a Kaleckian model for analyzing the impacts of remittances upon economies of receiving countries. The arrival of remittances has two harmful effects: contraction of income, and the so-called Dutch Disease (DD). We use our model to formulate an economic policy with two objective variables and two instrumental variables, to solve or attenuate these problems.

Date: 2014
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DOI: 10.1080/02692171.2014.933784

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