The Library

Migration with local public goods and the gains from changing places

Tools

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. ISSN 0938-2259

Preview

PDF
WRAP_Hammond_Local_public_goods.pdf - Draft Version - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (208Kb)

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

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:

Date	Event
December 2009	Published

Volume:

Vol.41

Number:

No.3

Number of Pages:

Page Range:

pp. 359-377

Identification Number:

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)

References:

Arrow, K.J. and G. Debreu (1954), “Existence of Equilibrium for a Competitive
Economy,” Econometrica 22, 265–290.
Broome, J. (1972), “Existence of Equilibrium in Economies with Indivisible
Commodities,” Journal of Economic Theory 5, 224–250.
Conley, J. and M.H. Wooders (1996), “Taste-Homogeneity of Optimal Jurisdictions
in a Tiebout Economy with Crowding Types and Endogenous
Educational Investment Choices,” Ricerche Economiche 50, 367–387.
Conley, J. and M.H. Wooders (1997) “Equivalence of the Core and Competitive
Equilibrium in a Tiebout Economy with Crowding Types,” Journal of
Urban Economics 41, 421–440.
Hammond P.J. and J. Sempere (1995), “Limits to the Potential Gains from
Market Integration and Other Supply-Side Policies,” Economic Journal 105,
1180–1204.
Hammond, P.J. and J. Sempere (2006), “Gains from Trade versus Gains from
Migration: What Makes Them So Different?” Journal of Public Economic
Theory 8, 145–170.
Hildenbrand, W. (1974), Core and Equilibria of a Large Economy (Princeton:
Princeton University Press).
Mas-Colell, A. (1977), “Indivisible Commodities and General Equilibrium Theory,”
Journal of Economic Theory 16, 443–456.