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Controlling for the underreporting of remittances

Author

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  • J. Scott Shonkwiler
  • David Grigorian
  • Tigran Melkonyan

Abstract

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 underreporting of remittances. After controlling for this, we find a strong negative impact of remittances on incentives to work.

Suggested Citation

  • J. Scott Shonkwiler & David Grigorian & Tigran Melkonyan, 2011. "Controlling for the underreporting of remittances," Applied Economics, Taylor & Francis Journals, vol. 43(30), pages 4817-4826.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4817-4826
    DOI: 10.1080/00036846.2010.498359
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    References listed on IDEAS

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    1. Samuel Munzele Maimbo & Dilip Ratha, 2005. "Remittances: Development Impact and Future Prospects," World Bank Publications - Books, The World Bank Group, number 7339.
    2. Riccardo Faini, 2003. "Is the Brain Drain an Unmitigated Blessing?," WIDER Working Paper Series DP2003-64, World Institute for Development Economic Research (UNU-WIDER).
    3. Yevgeny Kuznetsov, 2006. "Diaspora Networks and the International Migration of Skills : How Countries Can Draw on their Talent Abroad," World Bank Publications - Books, The World Bank Group, number 7008.
    4. Tigran A. Melkonyan & Mr. David A. Grigorian, 2008. "Microeconomic Implications of Remittances in an Overlapping Generations Model with Altruism and Self-Interest," IMF Working Papers 2008/019, International Monetary Fund.
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    Cited by:

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    2. Jakhongir Kakhkharov, 2017. "Remittances and household investment in entrepreneurship: The case of Uzbekistan," Discussion Papers in Finance finance:201703, Griffith University, Department of Accounting, Finance and Economics.
    3. Randall Akee, Devesh Kapur, 2012. "Remittances and Rashomon- Working Paper 285," Working Papers 285, Center for Global Development.

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