Longitudinal evidence on financial expectations in Albania: Do remittances matter?

This paper focuses on the role of remittances on financial expectations in Albania using longitudinal data covering the period 2002-2004. To study the dynamics of income satisfaction at the household level, we use subjective data on past, current and future financial situations and estimate random and fixed effect ordered Probit models. We find that households are more optimistic about the future when they have experienced an improvement in their financial situation in the past and when they have received private transfers from foreign countries