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Migration with local public goods and the gains from changing places

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Hammond, Peter J. and Sempere, Jaume (2009) Migration with local public goods and the gains from changing places. Economic Theory, Vol.41 (No.3). pp. 359-377. doi:10.1007/s00199-008-0400-6

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Official URL: http://dx.doi.org/10.1007/s00199-008-0400-6

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Abstract

Without public goods and under fairly standard assumptions, in Hammond and Sempere (J Pub Econ Theory, 8: 145–170, 2006) we show that freeing migration enhances the potential Pareto gains from free trade. Here, we present a generalization allowing local public goods subject to congestion. Unlike the standard literature on fiscal externalities, our result relies on fixing both local public goods and congestion levels at their status quo values. This allows constrained efficient and potentially Pareto improving population exchanges regulated only through appropriate residence charges, which can be regarded as Pigouvian congestion taxes.

Item Type: Journal Article
Subjects: J Political Science > JV Colonies and colonization. Emigration and immigration. International migration
H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Emigration and immigration -- Economic aspects, Public goods, Externalities (Economics), Equilibrium (Economics), Free trade
Journal or Publication Title: Economic Theory
Publisher: Springer
ISSN: 0938-2259
Official Date: December 2009
Dates:
DateEvent
December 2009Published
Volume: Vol.41
Number: No.3
Number of Pages: 19
Page Range: pp. 359-377
DOI: 10.1007/s00199-008-0400-6
Status: Peer Reviewed
Access rights to Published version: Restricted or Subscription Access
Funder: European Commission (EC)
Grant number: MEXC-CT-2006-041121 (EC)

Data sourced from Thomson Reuters' Web of Knowledge

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