Remittances and household expenditure behaviour: Evidence from Senegal1 |
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| Affiliation: | 1. Department of Business and Management, School of Business, Management, and Economics (BMEC), University of Sussex, Jubilee Building, Falmer, Brighton BN1 9SL, United Kingdom;2. Centre for International Business, Leeds University Business School, University of Leeds, Maurice Keyworth Building, Leeds LS2 9JT, United Kingdom;3. Alliance Manchester Business School, University of Manchester, Booth Street West, Manchester M15 6PB, United Kingdom;1. University of Pau, CATT, France;2. Paris Sciences et Lettres, Paris-Dauphine University, LEDa, DIAL UMR 225, FR-75016 Paris, France |
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| Abstract: | We use different econometric techniques, from propensity score matching to multinomial treatment methods, to assess the impact of internal and external remittances on several household budget shares in Senegal. When only considering the average impact of remittances on the household expenditure behaviour, we find an overall productive use of remittances. However, the impact of remittances disappears when the marginal spending behaviour is considered, i.e., households do not show a different consumption pattern with respect to their remittance status. The marginal spending behaviour therefore suggests that, in the decision on how to allocate expenditure, remittances are treated just as any other source of income. |
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| Keywords: | Remittances Household expenditure behaviour Propensity score matching Multinomial treatment regression Senegal |
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