Description

This paper uses a nationally-representative household survey from Ghana (2005-06) to analyze how the receipt of internal remittances (from Ghana) and international remittances (from other countries) affects the marginal spending behavior of households on various consumption and investment goods. Controlling for endogeneity and selection, it finds that households receiving remittances do not spend more at the margin on food, education and housing than households that receive no remittances. Households in Ghana treat remittances just like any other source of income, and the paper finds no changes in marginal spending patterns for households with the receipt of remittances.