Endogeneity and sample selection in a model for remittances

• 成果类型: Article
• 署名作者: Bettin, Giulia; Lucchetti, Riccardo; Zazzaro, Alberto
• 署名单位: Marche Polytechnic University; Marche Polytechnic University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2012.05.001
• 发表日期: 2012
• 页码: 370-384
• 关键词: remittances; migration; Selection models

摘要

We estimate a remittance model in which we address endogeneity and reverse causality relationships between immigrants' remittances, pre-transfer income and consumption. In order to take into account the fact that a large share of individuals do not remit, instrumental variable variants of the double-hurdle and Heckit selection models are proposed and estimated by Limited Information ML; semiparametric extensions are considered as robustness checks. Our results for a sample of recent immigrants to Australia show that endogeneity is substantial and that estimates obtained by the methods previously employed in the literature may be misleading if given a behavioral interpretation. (C) 2012 Elsevier B.V. All rights reserved.