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Fiscal Policy in Infinite-Horizon Endogenous Growth Models: A Survey

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  • Massimiliano MARZO

    (Universita' di Bologna)

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    Abstract

    We study how immigration policies are determined under voting in a two-country model where immigration redistributes income from wages to capital. Migration decisions are endogenous, there exist border enforcement costs and preference for home-country consumption. We model the migration policy as a pure entry rationing rather than a necessarily porous screening system. Unlike the existing results of polarization, our findings show that preferences over frontier closure are distributed on a continuum, going from total closure to total openness. Thus, the Condorcet winning immigration policy may well be an interior solution. Our results fit the real-life observation that both perfect closure and perfect openness are rare events. We also study the case of a referendum over two alternative policies and show that its outcome depends upon the location of the median voter with respect to the individual indifferent between the two alternatives.

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    File URL: http://riss.vitaepensiero.it/scheda-articolo_digital/massimiliano-marzo/fiscal-policy-in-infinite-horizon-endogenous-growth-models-a-survey-000518_2005_0001_0093-150810.html
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    Bibliographic Info

    Article provided by Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore in its journal Rivista Internazionale di Scienze Sociali.

    Volume (Year): 113 (2005)
    Issue (Month): 1 ()
    Pages: 93-130

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    Handle: RePEc:vep:journl:y:2005:v:113:i:1:p:93-130

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    Related research

    Keywords: growth; factor input taxes; consumption and investment taxes; two sector models; optimal taxation.;

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