Asylum Seekers in Europe: The Warm Glow of a Hot Potato
Giovanni Facchini (),
Oliver Lorz () and
Gerald Willmann ()
No 205, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano
The Common European Asylum System calls for increased coordination of the EU countries’ policies towards asylum seekers and refugees. In this paper, we provide a formal analysis of the effects of coordination, explicitly modelling the democratic process through which policy is determined. In a symmetric, two-country citizen-candidate setup, in which accepting asylum seekers in one country generates a cross-border externality in the other, we show that coordination is desirable. Internalizing the externality leads to a welfare improvement over the non–cooperative outcome. However, contrary to suggestions by many observers, we show that allowing for cross-country transfers in the cooperative outcome leads to a welfare inferior outcome because the possibility of compensation exacerbates strategic delegation effects.
Keywords: Political Economy; Asylum Policy; Migration (search for similar items in EconPapers)
JEL-codes: J61 H77 F22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pbe and nep-pol
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Journal Article: Asylum seekers in Europe: the warm glow of a hot potato (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:205
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