EconPapers    
Economics at your fingertips  
 

Accounting for Fluctuations in Social Network Usage and Migration Dynamics

Joseph Haslag (), Mark Guzman () and Pia Orrenius ()

No 410, Working Papers from Department of Economics, University of Missouri

Abstract: In this paper, we examine network capital usage and migration patterns in a theoretical model. Networks are modeled as impacting the migration decision in many ways. When young, larger networks reduce the time lost moving from one region to another. In addition networks decrease the time spent searching for a job. Finally, when old, migrants receive transfer payments through the network. We show that the number and properties of steady state equilibria as well as the global dynamics depend crucially on whether the returns to network capital accumulation exhibit constant, increasing, or decreasing returns to scales relative to the level of network capital. With constant returns to scale, migration flows and network capital levels are characterized by either a unique steady state equilibria or by a two-period cycle. The fluctuations in network capital usage exhibited by our model are consistent with recent empirical data regarding the usage of networks by Mexican immigrants. In the case of increasing returns to scale, either there exists a unique, stable steady state equilibria or multiple equilibria which are characterized as either sinks or saddles. When the returns to scale are decreasing, there exists a unique, stable steady state equilibrium. Finally, we show that increasing barriers to migration will result in an increase in the flow of immigrants, contrary to the desired effect, in the constant and increasing returns to scale cases.

JEL-codes: F22 F43 H21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-net
Date: 2004-08-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
https://economics.missouri.edu/working-papers/2004/wp0410_haslag.pdf (application/pdf)

Related works:
Working Paper: Accounting for fluctuations in social network usage and migration dynamics (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:umc:wpaper:0410

Access Statistics for this paper

More papers in Working Papers from Department of Economics, University of Missouri Contact information at EDIRC.
Bibliographic data for series maintained by Valerie Kulp ().

 
Page updated 2019-04-13
Handle: RePEc:umc:wpaper:0410