UID:
edoccha_9958236111302883
Umfang:
1 online resource (38 p.)
ISBN:
1-4983-5725-3
Serie:
IMF Working Papers
Inhalt:
This paper investigates the channels through which remittances affect macroeconomic volatility in African countries using a dynamic stochastic general equilibrium (DSGE) model augmented with financial frictions. Empirical results indicate that remittances—as a share of GDP—have a significant smoothing impact on output volatility but their impact on consumption volatility is somewhat small. Furthermore, remittances are found to absorb a substantial amount of GDP shocks in these countries. An investigation of the theoretical channels shows that the stabilization impact of remittances essentially hinges on two channels: (i) the size of the negative wealth effect on labor supply induced by remittances and, (ii) the strength of financial frictions and the ability of remittances to alleviate these frictions.
Anmerkung:
Description based upon print version of record.
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Cover; ABSTRACT; CONTENTS; I. INTRODUCTION; II. LITERATURE REVIEW; FIGURES; 1..Remittances and Other Financial Flows in SSA; 2. Volatility of Financial Flows to Africa (Coefficient of Variation); III. EMPIRICAL EVIDENCE; A. Remittances and Macroeconomic Volatility; TABLES; 1. Business Cycle Fluctuations and Remittances; 2. Macroeconomic Fluctuations and Remittances, GLS Estimation; B. Remittances and Risk Sharing; IV. A SMALL OPEN ECONOMY MODEL WITH REMITTANCES; A. The Theoretical Model; 3. Remittances and Risk Sharing; B. International Financial Markets and the Role of Remittances
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V. QUANTITATIVE ANALYSISA. The Role of Wealth Effect on Labor Supply; 4. Calibrated Parameters; 5. Model Predictions and the Wealth Effect; B. Remittances and Financial Frictions; VI. SENSITIVITY ANALYSIS; 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; VII. CONCLUSION; REFERENCES; 11. Summary Statistics; APPENDIX; 3. Macroeconomic Volatilit y and Remittances in Africa; 4. IRF To TFP Shocks with KPR Preferences, Without Remittances
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5. IRF With KPR Preferences and Remittances-Credit Frictions6. IRF To TFP Shocks with GHH Preferences Without Remittances-Credit; 7. IRF To TFP shocks with GHH Preferences and Remittances-Credit Frictions
Weitere Ausg.:
ISBN 1-4983-0094-4
Weitere Ausg.:
ISBN 1-4983-2374-X
Sprache:
Englisch
