Don’t tell on me: Experimental evidence of asymmetric information in transnational households

Although most theoretical models of household decision making assume perfect information, empirical studies suggest that information asymmetries can have large impacts on resource allocation. I demonstrate the importance of these asymmetries in transnational households, where physical distance betwe...

Descripción completa

Detalles Bibliográficos
Autor principal: Ambler, Kate
Formato: Journal Article
Lenguaje:Inglés
Publicado: Elsevier 2015
Materias:
Acceso en línea:https://hdl.handle.net/10568/151359
_version_ 1855519085623771136
author Ambler, Kate
author_browse Ambler, Kate
author_facet Ambler, Kate
author_sort Ambler, Kate
collection Repository of Agricultural Research Outputs (CGSpace)
description Although most theoretical models of household decision making assume perfect information, empirical studies suggest that information asymmetries can have large impacts on resource allocation. I demonstrate the importance of these asymmetries in transnational households, where physical distance between family members can make information barriers especially acute. I implement an experiment among migrants in Washington, DC, and their families in El Salvador that examines how information asymmetries can have strategic and inadvertent impacts on remittance decisions. Migrants make an incentivized decision over how much of a cash windfall to remit, and recipients decide how they will spend a remittance. Migrants strategically send home less when their choice is not revealed to recipients. Recipients make spending choices closer to migrants' preferences when the migrants' preferences are shared, regardless of whether or not the spending choices are revealed to the migrants, suggesting that recipients' choices are inadvertently affected by imperfect information.
format Journal Article
id CGSpace151359
institution CGIAR Consortium
language Inglés
publishDate 2015
publishDateRange 2015
publishDateSort 2015
publisher Elsevier
publisherStr Elsevier
record_format dspace
spelling CGSpace1513592025-02-24T06:48:33Z Don’t tell on me: Experimental evidence of asymmetric information in transnational households Ambler, Kate intrahousehold relations remittances households resource allocation information exchange Although most theoretical models of household decision making assume perfect information, empirical studies suggest that information asymmetries can have large impacts on resource allocation. I demonstrate the importance of these asymmetries in transnational households, where physical distance between family members can make information barriers especially acute. I implement an experiment among migrants in Washington, DC, and their families in El Salvador that examines how information asymmetries can have strategic and inadvertent impacts on remittance decisions. Migrants make an incentivized decision over how much of a cash windfall to remit, and recipients decide how they will spend a remittance. Migrants strategically send home less when their choice is not revealed to recipients. Recipients make spending choices closer to migrants' preferences when the migrants' preferences are shared, regardless of whether or not the spending choices are revealed to the migrants, suggesting that recipients' choices are inadvertently affected by imperfect information. 2015-03-01 2024-08-01T02:56:51Z 2024-08-01T02:56:51Z Journal Article https://hdl.handle.net/10568/151359 en https://hdl.handle.net/10568/153756 Open Access Elsevier Ambler, Kate. 2015. Don’t tell on me: Experimental evidence of asymmetric information in transnational households. Journal of Development Economics 113(March 2015): 52-69. https://doi.org/10.1016/j.jdeveco.2014.11.001
spellingShingle intrahousehold relations
remittances
households
resource allocation
information exchange
Ambler, Kate
Don’t tell on me: Experimental evidence of asymmetric information in transnational households
title Don’t tell on me: Experimental evidence of asymmetric information in transnational households
title_full Don’t tell on me: Experimental evidence of asymmetric information in transnational households
title_fullStr Don’t tell on me: Experimental evidence of asymmetric information in transnational households
title_full_unstemmed Don’t tell on me: Experimental evidence of asymmetric information in transnational households
title_short Don’t tell on me: Experimental evidence of asymmetric information in transnational households
title_sort don t tell on me experimental evidence of asymmetric information in transnational households
topic intrahousehold relations
remittances
households
resource allocation
information exchange
url https://hdl.handle.net/10568/151359
work_keys_str_mv AT amblerkate donttellonmeexperimentalevidenceofasymmetricinformationintransnationalhouseholds