Front Matter Page
African
Contents
ABSTRACT
I. INTRODUCTION
II. LITERATURE REVIEW
III. EMPIRICAL EVIDENCE
A. Remittances and Macroeconomic Volatility
B. Remittances and Risk Sharing
IV. A SMALL OPEN ECONOMY MODEL WITH REMITTANCES
A. The Theoretical Model
B. International Financial Markets and the Role of Remittances
V. QUANTITATIVE ANALYSIS
A. The Role of Wealth Effect on Labor Supply
B. Remittances and Financial Frictions
VI. SENSITIVITY ANALYSIS
VII. CONCLUSION
TABLES
1. Business Cycle Fluctuations and Remittances
2. Macroeconomic Fluctuations and Remittances, GLS Estimation
3. Remittances and Risk Sharing
4. Calibrated Parameters
5. Model Predictions and the Wealth Effect
6. Model Predictions and Financial Development
7. Model Predictions as ω Changes
8. Model Predictions as β Changes
9. Model Predictions as σ Changes
10. Model Predictions as φ Changes
11. Summary Statistics
FIGURES
1. Remittances and Other Financial Flows in SSA
2. Volatility of Financial Flows to Africa (Coefficient of Variation)
3. Macroeconomic Volatility and Remittances in Africa
4. IRF To TFP Shocks with KPR Preferences, Without Remittances
5. IRF With KPR Preferences and Remittances-Credit Frictions
6. IRF To TFP Shocks with GHH Preferences Without Remittances-Credit
7. IRF To TFP shocks with GHH Preferences and Remittances-Credit Frictions
REFERENCES
APPENDIX