If a dollar denominated external debt comes with so many risks, why do emerging economies allow for such an imbalance to accumulate ? The explanation provided in this paper builds on a simple signaling model. By assumption, lenders have no direct possibility to infer a firm’s financial stance....

This paper analyzes the interaction between migrants' income and remittances and between remittances and the labor supply of residents. The model is cast as a two-period game with imperfect information about the residents' real economic situation. Residents subject to a good economic situation...