000006261 001__ 6261 000006261 005__ 20180122192546.0 000006261 037__ $$a382-2016-22463 000006261 041__ $$aen 000006261 084__ $$aF22 000006261 084__ $$aF24 000006261 084__ $$aL14 000006261 084__ $$aO1 000006261 084__ $$a015 000006261 245__ $$aThe Insurance Role of Remittances on Household Credit Demand 000006261 260__ $$c2008 000006261 269__ $$a2008 000006261 270__ $$msrichter@primal.ucdavis.edu$$pRichter, Susan M. 000006261 300__ $$a61 000006261 336__ $$aConference Paper/ Presentation 000006261 490__ $$aSelected Paper 000006261 490__ $$a462950 000006261 520__ $$aThe economic literature has highlighted how in the absence of income insurance risk averse households may voluntarily withdraw from credit markets, since contract terms may transfer too much risk to the household (Boucher, Carter, and Guirkinger, 2007). Therefore, households may forgo activities with higher expected income in favor of activities with less income variability across states of nature (Morduch, 1995). Recent literature has also evaluated how remittances provide households with insurance against income shocks (Yang and Choi, 2007; Rosenzweig and Stark, 1989) and how remittances may help households bypass financial intermediaries (Woodruff and Zenteno, 2001; Taylor, Rozelle, and de Brauw, 2003). There has been minimal attention, however, on how access to the potential receipt of remittances affects household participation in financial credit markets. On the one hand, the direct effect of remittances might decrease liquidity constraints at the household level and thus decrease credit demand. On the other hand remittances may provide households with insurance and thus increase willingness to accept credit contract terms. In this paper I estimate the effect of the potential receipt of remittances on credit demand. Potential receipt of remittances is estimated by predicting the household's receipt of remittances and variables that proxy for the strength and vulnerability of migration networks. Results indicate that the predicated amount of remittances received at the household level have a positive effect on credit demand. 000006261 542__ $$fLicense granted by Shelley Reber (rebe0022@umn.edu) on 2008-05-07T17:44:11Z (GMT): <center> <h2> Deposit Agreement </h2> </center> I represent that I am the creator of the digital material identified herein (“Work”). I represent that the work is original and that I either own all rights of copyright or have the right to deposit the copy in a digital archive such as AgEcon Search. I represent that in regard to any non-original material included in the Work I have secured written permission of the copyright owner (s) for this use or believe this use is allowed by law. I further represent that I have included all appropriate credits and attributions. I hereby grant the Regents of the University of Minnesota (“University”), through AgEcon Search, a non-exclusive right to access, reproduce, and distribute the Work, in whole or in part, for the purposes of security, preservation, and perpetual access. I grant the University a limited, non-exclusive right to make derivative works for the purpose of migrating the Work to other media or formats in order to preserve access to the Work. I do not transfer or intend to transfer any right of copyright or other intellectual property to the University. If the Deposit Agreement is executed by the Author's Representative, the Representative shall separately execute the following representation: I represent that I am authorized by the Author to execute this Deposit Agreement on behalf of the Author. 000006261 650__ $$aFinancial Economics 000006261 650__ $$aHealth Economics and Policy 000006261 700__ $$aRichter, Susan M. 000006261 8564_ $$s245414$$uhttp://ageconsearch.umn.edu/record/6261/files/462950.pdf 000006261 887__ $$ahttp://purl.umn.edu/6261 000006261 909CO $$ooai:ageconsearch.umn.edu:6261$$pGLOBAL_SET 000006261 912__ $$nSubmitted by Shelley Reber (rebe0022@umn.edu) on 2008-05-07T17:45:34Z No. of bitstreams: 1 462950.pdf: 245414 bytes, checksum: 609df4ce4b108746885925d493bb448c (MD5) 000006261 912__ $$nMade available in DSpace on 2008-05-07T17:45:35Z (GMT). No. of bitstreams: 1 462950.pdf: 245414 bytes, checksum: 609df4ce4b108746885925d493bb448c (MD5) Previous issue date: 2008 000006261 982__ $$gAmerican Agricultural Economics Association>2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 000006261 980__ $$a382