TY - JOUR
T1 - Mental accounting and remittances: A study of rural Malawian households
AU - Davies, Simon
AU - Easaw, Joshy Z
AU - Ghoshray, Atanu
PY - 2009/6/1
Y1 - 2009/6/1
N2 - In this paper we use a behavioural approach to studying household consumption behaviour in Malawi. In particular we are interested to know whether households use mental accounting when consuming different categories of good. It is useful for assessing the impact of remittances on household consumption behaviour. We use 1998 cross-sectional data to find the following key results: (i) mental accounting systems are in operation; (ii) remittance income exhibits a lower marginal propensity to consume than other income sources, (iii) remittances are widely used to fund education consumption, (iv) credit plays an important role in funding education and farming.
AB - In this paper we use a behavioural approach to studying household consumption behaviour in Malawi. In particular we are interested to know whether households use mental accounting when consuming different categories of good. It is useful for assessing the impact of remittances on household consumption behaviour. We use 1998 cross-sectional data to find the following key results: (i) mental accounting systems are in operation; (ii) remittance income exhibits a lower marginal propensity to consume than other income sources, (iii) remittances are widely used to fund education consumption, (iv) credit plays an important role in funding education and farming.
KW - Global political economy
UR - http://www.scopus.com/inward/record.url?scp=67349141908&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1016/j.joep.2009.03.003
U2 - 10.1016/j.joep.2009.03.003
DO - 10.1016/j.joep.2009.03.003
M3 - Article
VL - 30
SP - 321
EP - 334
JO - Journal of Economic Psychology
JF - Journal of Economic Psychology
IS - 3
ER -