A theoretical discussion of the role of remittances in a small open economy real business cycle model
Date of Publication
2013
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Applied Economics
Subject Categories
Economics
College
Ramon V. Del Rosario College of Business
Department/Unit
Economics
Defense Panel Member
Dickson A. Lim
Marites M. Tiongco
Ruperto P. Majuca
Abstract/Summary
Remittances are a large source of external finance especially for developing countries. This paper theoretically explains the role of remittances in a small open economy. It presents an extension to the baseline Real Business Cycle model through the inclusion of financial sector as intermediaries of these transfers, as depository banks of households, and as a source of external funding for firms in financing the wage bill. In an attempt to explain their role in the economy, the four-sector small open economy model is used to explore the interaction between economic sectors. Considering that remittances are an additional source of income for households, these transfers clearly affect household budget constraint and firm borrowings for wage bill.
Abstract Format
html
Language
English
Format
Accession Number
TU20066
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
72 leaves ; 28 cm.
Keywords
Business cycles--Mathematical models; Emigrant remittances; Economic policy
Recommended Citation
Bocago, C. L., Gonzales, J. M., & Park, S. G. (2013). A theoretical discussion of the role of remittances in a small open economy real business cycle model. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/11318
