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Submitted by Tim Ogden on

David,

I'm not clear on why migrants investing in property in their country of origin should be distinct from other transfers. As Michael and I implicitly argue in our paper on rethinking remittances (http://www.financialaccess.org/sites/default/files/publications/migration-as-a-strategy-for-household-finance-2013_0.pdf) the idea that there is a fundamental change in how households behave when an income earner crosses a national border may be wrong.

Information asymmetries may get larger and preferences may further diverge, but those may be marginal changes. Therefore, the balance of transfers for consumption and investment are all part of the same set of decisions and intrahousehold dynamics and shouldn't be thought of separately at all.