The Insurance Role of Remittances on Household Credit Demand

摘要: The economic literature has highlighted how in the absence of income insurance risk averse households may voluntarily withdraw from credit markets, since contract terms transfer too much to household (Boucher, Carter, and Guirkinger, 2007). Therefore, forgo activities with higher expected favor less variability across states nature (Morduch, 1995). Recent also evaluated remittances provide against shocks (Yang Choi, 2007; Rosenzweig Stark, 1989) help bypass financial intermediaries (Woodruff Zenteno, 2001; Taylor, Rozelle, de Brauw, 2003). There been minimal attention, however, on access potential receipt affects participation markets. On one hand, direct effect might decrease liquidity constraints at level thus demand. other hand increase willingness accept terms. In this paper I estimate Potential is estimated by predicting household's variables that proxy for strength vulnerability migration networks. Results indicate predicated amount received have a positive