Are remittances a substitute for credit?
Ambrosius, Christian ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleAre remittances a substitute for credit?
SubtitleCarrying the financial burden of health shocks in national and transnational households
AuthorAmbrosius, Christian
EditorUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages32 S.
Series ; 2012,9 : Economics
Classification (DDC)332 Financial economics
AbstractThe assumption that remittances are a substitute for credit has been an implicit or
explicit theoretical foundation of many empirical studies on remittances. This paper
directly tests this assumption by comparing the response to health-related shocks
among national and transnational households using panel data from Mexico for 2002 and 2005. While the occurrence of serious health shocks that required hospital treatment doubled the average debt burden of exposed households compared to the control group, households with nuclear family members (a parent, child, or spouse) in the US did not increase their debts due to health shocks. This finding is consistent with the view that remittances respond to households’ demand for financing emergencies and make them less reliant on debt-financing.
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FU DepartmentInstitute for Latin American Studies
Other affiliation(s)Internationales Graduiertenkolleg "Zwischen Räumen"
Year of publication2012
Type of documentBook
Terms of use/Rights Nutzungsbedingungen
Created at2012-04-27 : 09:56:25
Last changed2016-01-05 : 02:38:27
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000013526