Public goodsÕ attractiveness and migrations

JeanÊ GABSZEWICZÊ, Salome Gvetadze (), Didier Laussel () and Patrice Pieretti
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JeanÊ GABSZEWICZÊ: UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE)
Authors registered in the RePEc Author Service: Jean Gabszewicz ()

No 2008080, CORE Discussion Papers from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: The aim of this paper is to develop a dynamic model of migrations, in which migration is driven by size asymmetries between countries and by the relative preferences of consumers between private consumption and consumption of public goods. The dynamic trajectories heavily depend on the degree of attractiveness for public goods We show that monotone migrations require sufficiently strong preferences for public goods, and can only be sustained from the small to the large countries. We identify the threshold value of the public goodsÕ intensity of preferences guaranteeing the survival of the small country. For weaker preference intensities, oscillating migrations may arise, but they Þnally converge to situation where both countries are of equal size.

Keywords: migration; public goods; income tax. (search for similar items in EconPapers)
JEL-codes: H (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mig, nep-pbe and nep-pub
Date: 2008-12-01

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http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2008_80.pdf (application/pdf)

Related works:
Working Paper: Public goods’ attractiveness and migrations (2008)
Working Paper: Public goodsÕ attractiveness and migrations (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:cor:louvco:2008080

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