Sun, Regulation and Local Social Networks

Antoine Bonleu ()

No 1714, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: The aim of this paper is to explain over-regulation and local social capital as barriers to immigration. The interest of social networks is that conflict resolution is independent of the law. Hence, if local individuals develop local social capital and regulation, foreigners without social networks are disadvantaged and can less easily migrate. We develop a two-country search-theoretic model where we endogenize the choice of procedural formalism (PF) and the network size. This model features two different equilibria: a Mediterranean equilibrium with PF and dense local social network and a Scandinavian and Anglo-Saxon equilibrium without PF and local social networks.

Keywords: housing market regulation; local social capital; mobility; climate amenities; social networks (search for similar items in EconPapers)
JEL-codes: R38 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2017-04
New Economics Papers: this item is included in nep-mig, nep-net, nep-reg, nep-soc and nep-ure
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Working Paper: Sun, Regulation and Local Social Networks (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1714

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