Giulia Bettin (Università Politecnica delle Marche)
mardi 28 mars 2017
State dependence and unobserved heterogeneity in a double hurdle model for remittances: evidence from immigrants to Germany [PDF]
Abstract : The increasing availability of panel datasets makes it possible to explore the persistence in remittance decisions as a result of intertemporal choices, possibly consistent with several motivations to remit. Building a dynamic model with longitudinal data poses the additional problem of dealing with permanent unobserved heterogeneity; the specific censored nature of international transfers has also to be accounted for. We propose a dynamic, random-effects double hurdle model: we extend the traditional setting to account for state dependence and unobserved heterogeneity. Empirical evidence, based on the GSOEP dataset, suggests that there is significant state dependence in remitting behaviour consistent with migrants’ intertemporal allocation of savings; transaction costs are likely to affect the temporal steadiness of transfers.
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