Modelling an Immigration Shock

Michele Boldrin and Ana Montes
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Ana Montes: Fundamentos del Análisis Económico

UMUFAE Economics Working Papers from DIGITUM. Universidad de Murcia

Abstract: In this paper we model an overlapping generation economy affected by an unexpected immigration shock and figure out how household would insure against "immigration risk" efficiently. We use the model to study the impact of immigration in (i) the welfare of different generations (ii) the distributions of income among factors of production (iii) the optimal design of the interegenartional welfare state. In particular we construct a system of public education and public pensions that mimics the efficient complete market allocation. We also show the impact of immigration shock in a small open economy.In this case the external capital flows can act as sbustitutes for the miising private insurance markets.Our analysis delivers a set of predictions that we find useful to understand some aspects of the Spanish experience between 1996 and 20007.

Keywords: Seguridad Social; Capital Humano; Modelos de generaciones solapadas; Risk sharing; Inmigración (search for similar items in EconPapers)
JEL-codes: D12 R23 (search for similar items in EconPapers)
Pages: 31
Date: 2013-10
New Economics Papers: this item is included in nep-dge
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http://digitum.um.es/xmlui/bitstream/10201/36663/1/WPUMUFAE.2013.01.pdf (application/pdf)

Related works:
Journal Article: Modeling an immigration shock (2015)
Working Paper: Modeling an Immigration Shock (2014)
Working Paper: Modeling the Immigration Shock (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:mur:wpaper:36663

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