| 1. |
- Akay, Alpaslan, 1975, et al.
(författare)
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Purchasing-Power-Parity and the Saving Behavior of Temporary Migrants
- 2021
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 134
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Tidskriftsartikel (refereegranskat)abstract
- How does saving behavior of immigrants respond to changes in purchasing power parity between the source and host countries? We examine this question by building a theoretical model of joint return-migration and saving decisions of temporary migrants and then test its implications by using data from the German Socioeconomic Panel on immigrants from 92 source countries. As implied by our theoretical model, we find that the saving rate increases in the nominal exchange rate but decreases in the source-country price level and that the absolute magnitude of both relationships increases as the time to retirement becomes shorter. At the median level of years to retirement, the absolute values of the elasticity of savings with respect to the nominal exchange rate and with respect to the source-country price level are both close to unity. Moreover, as we gradually restrict the sample to individuals with stronger return intentions, the estimated magnitudes become larger and their statistical significance higher.
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| 2. |
- Djajic, Slobodan
(författare)
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Effects of Budgetary Policies in Open Economies : The Role of Intertemporal Consumption Substitution
- 1986
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- An economy's optimal response to temporary and anticipated future changes in government spending is examined in the context of a two-country model which highlights the role of the elasticity of intertemporal consumption substituion (ICS). Soecial attention is devoted to the case in which both governments pursue identical policy measures. The qualitative effects of such measures on an economy's current account, its terms of trade (in a two-commodity world), and its real exchange and interest rate (in a world with non-traded goods) are shown to depend on the relationship between the domestic and the foreign elasticity of ICS.
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| 3. |
- Djajic, Slobodan
(författare)
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Migrants in a Guest-Worker System : A Utility-Maximizing Approach
- 1986
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper examines the behavior of utility-maximizing migrants in a system of guest-worker migration. Their pattern of leisure and commodity consumption at home and abroad is analysed and related to those chosen by the natives of the host country and the non-migrants of the source country. The paper also highlights an important distinction between permanent and temporary migration. While a permanent migrant is primarily interested in the real-wage differential betweeen countries of immigration and emigration, a guest worker's decision to migrate depends on both the real and the nominal differential. The relative importance of the nominal differential is found to be inversely related to the degree of concavity of his instantaneous utility function.
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