Garbage in, Gospel Out? Controlling for the Underreporting of Remittances

21 Pages Posted: 8 Oct 2008

See all articles by David Grigorian

David Grigorian

International Monetary Fund (IMF)

Tigran A. Melkonyan

University of Nevada, Reno

J. Scott Shonkwiler

University of Nevada, Reno

Date Written: September 2008

Abstract

Empirical studies that use self-reported data on remittances to measure the latter's impact on microeconomic incentives mostly ignore the potential errors associated with reporting/measurement issues. An econometric procedure to control for these errors is developed and applied to household-level data from Armenia. We find evidence of systematic under-reporting of remittances. After controlling for this, we find a strong negative impact of remittances on incentives to work.

Keywords: Working Paper

Suggested Citation

Grigorian, David A. and Melkonyan, Tigran A. and Shonkwiler, J. Scott, Garbage in, Gospel Out? Controlling for the Underreporting of Remittances (September 2008). IMF Working Papers, Vol. , pp. 1-19, 2008. Available at SSRN: https://ssrn.com/abstract=1278441

David A. Grigorian (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Tigran A. Melkonyan

University of Nevada, Reno ( email )

1664 N. Virginia St
Reno, NV 89557
United States

J. Scott Shonkwiler

University of Nevada, Reno ( email )

Applied Economics and Statistics
Reno, NV 89557
United States
775-784-1341 (Phone)

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