on household consumption patterns, albeit being rather small, actually speak in favour of investment of remittances, with …

We incorporate remittances and microentrepreneurship (self-employment) into a small openeconomy business cycle model … with capital and labor market frictions. Countercyclical remittances moderate the decline of households' consumption during … recessions. These remittances also are used to finance the start-up costs of microenterprises that bolster households' income …