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The third column presents estimates for the remittance volume model based on OLS using the sample of non-zero remitters.
Banks may have a hard time competing with money-transfer companies for the remittance business, despite their new low-price or even free transactions.
A first for the remittance industry, claims the company, with perhaps PayPal-to-PayPal transfers coming closest.
This finding is invariant to whether the model is estimated using different definitions for the remittance metric.7.
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To account for the potential endogeneity of the remittance decision, we need instruments that are correlated with the level and probability of a remittance, but not education spending.
They send $38 billion abroad annually, a third of that to Mexico, using Western Union, check-cashing outlets and banks for the remittances.
Correction 24 January 2017: This article mistakenly gave the figure for the remittances sent to Mexico from the US as $4bn when it is about $25bn.
Similarly, McFadden's pseudo R2 for the remittances regression is 0.171 while it equals 0.003 for school enrollment.
The likelihood ratio χ2 test is significant in both cases, but the value for the remittances model is 30 times that of the school enrollment model.
Should Barclays go ahead with the closures it is unlikely another bank would step in.The London summit had been meant to find a compromise ahead of Barclays' September 30th deadline for closing the remittance agencies' accounts.
However, after controlling for the endogeneity of the remittances, we find that the amount of remittances sent by other siblings has no statistically significant effect on sibling remittances.
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