Remittances, savings and return migration under uncertainty

Return migration, uncertainty and precautionary savings.

"This paper presents a life-cycle model where migrants determine re-migration and consumption simultaneously in a stochastic environment. Whether precautionary savings of migrants are above or below those of natives is ambiguous in general--the sign depends on the risk in host- and home-country labor markets and on the correlation of labor market shocks. Furthermore, the effect of an uncertain ...

Gender, Migration and Remittances

51_10 Representing the second largest source of external funding for developing countries, remittances – money transfers by migrants to their relatives or other persons in countries of origin – are recognized by governments and international organizations as important tools for reducing household poverty and enhancing local development.1 However, it is often implicitly assumed in research, poli...

Remittances and savings in migrant-sending countries

The economies of a number of Pacific island countries have become increasingly dependent on the remittance of migrants. A series of recent International Labour Office research projects in the South Pacific focused on two countries—Tonga and Western Samoa (Brown 1994). Recommendations from these insights serve as a basis for a policy dialogue with the financial authorities of Pacific island coun...

Return Predictability under Knightian Uncertainty

The predictability of stock and bond excess returns is investigated from an investment perspective in the presence of Knightian uncertainty. Uncertainty about the return distribution is formalized with the maxmin expected utility approach of Gilboa and Schmeidler (1989). It is analyzed how risk and uncertainty aversion di¤er in their e¤ects on optimal portfolio choice. Most importantly, it is s...

Migration and Remittances