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inflationary remittances built-in pressures. We establish a feedback loop between migration and inflation, and specify a simple … to 98 basis points (BP) of inflation pressures in the short-run and 23 BP in the long-run. Remittances induce excessive …
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This paper examines whether biased income expectations due to overconfidence lead to higher levels of debt-taking. In a lab experiment, participants can purchase goods by borrowing against their future income. We exogenously manipulate income expectations by letting income depend on relative...
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