The purpose of this paper is to gain a better understanding of the black market premium--the percent differential between the black market and official exchange rate. We test to see whether the black market premium responds to variations in expectations about the official exchange rate in...

This paper analyzes the impact of exchange rate levels and exchange rate uncertainty on US foreign direct investment into Latin America. By decomposing exchange rate uncertainty into temporary (short-run) and permanent (long-run) components, we further explore whether the nature of uncertainty...

A panel of nine Western Hemisphere nations is employed to test the proposition that the remittances of immigrants respond to risk variables, in particular to exchange-rate uncertainty. To estimate annual exchange-rate uncertainty, a nonparametric estimator based on monthly exchange rate returns...

This book deals with the economic consequences of monetary integration, which has long been dominated by the Optimal Currency Area (OCA) paradigm. In this model, money is perceived as having developed from a private sector cost minimization process to facilitate transactions. Not surprisingly,...

Beyond Small Change examines the phenomenon of migrant remittances in hopes of contributing to international understanding of remittances, promoting better policies and practices in this area, and turning migrant workers' hard-won resources into a source of development for their homelands. This...

A typical strategy for measuring the returns to international experience—comparing the earnings of returning migrants to comparable non-migrants—has been criticized for not adequately accounting for self-selection. I suggest an alternative, testing whether individuals born beyond US borders,...