Corporate How many cake-eaters? Chouette, on a du monde à dîner !

Pascal Favard and Larry Karp

Cahiers du LASER (LASER Working Papers) from LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1

Abstract: we use a cake-eating model with a non-renewable resource and a backstop technology to describe the intertemporal effect of a sudden increase of the population level, e.g. due to migration. The migrants enter an economy in which there is already surplus labor, and they receive transfers from "natives". These assumptions imply that the present discounted value of natives’ welfare falls. The counterintuitive result is that the flow of natives’ utility can increase at the time of the population change.

Keywords: NONRENEWABLE RESOURCES; CAKE-EATING MODELS; MIGRATION; COMPARATIVE DYNAMICS (search for similar items in EconPapers)
JEL-codes: F22 Q3 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:mop:lasrwp:2001.03

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