1. Lecture 12: Remittances or Gifts?
Are Remittances a substitute for Canadian Aid?

2. Motivations Alturism: One way Implicit Contract: Combination of both
For How long and to Whom?
Implicit Contract:
For how long and to whom?
Combination of both
Does motivation differ by Immigration Status?
Temporary vs. Permanet

3. Canadian Case Why so little: Less than 6% of total HH expenditures
Less than 1/3 of foreign-born remit
Largest Remittances by older vintage of immigrants
What do remittances look like over life cycle?
What is split between household and Charitable Remittances?

4. Distribution of Remittances

5. Restricted for Homogeneity and Symmetry
Table 3: Expenditure Elasticities for Remittances to Persons Calculated from LA/AIDS, 1992/1996
Population
Uncontrolled
Controlled
Group
Income Group
all
top Y/2
bottom Y/2
Unrestricted
Canadian
1.07
1.27
1.19
1.88
1.73
1.83
N.Am.&W.Eu.
1.29
1.43
1.67
2.28
2.14
2.23
S&E European
1.01
1.11
1.09
2.07
1.59
2.29
Ch.,As.&Oc.
1.12
1.10
1.13
Restricted for Homogeneity and Symmetry
1.25
1.20
1.86
1.70
1.78
1.66
2.25
2.10
2.18
0.98
1.06
1.08
2.08
1.60
2.36
Notes: Elasticity is computed through the formula
, where
is the actual mean expenditure share and
is the estimated household income coefficient.

6. Household Transfers

7. Charitable Remittances

8. What is done with Remittances?
Household consumption
Who gets: poorest or middle class
Is it invested: Schooling, capital equipment
Two for One Mexico Programme
Mexican Heroes to Mexican Exploited.
Are remittances a substitute for Aid or FDI?