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Public goods’ attractiveness and migrations

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  • Jean J., GABSZEWICZ

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

  • Salome, GVETADZE

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE))

  • Didier, LAUSSEL

    (Université de la Méditérannée, Marseille)

  • Patrice, PIERETTI

    (Université du Luxembourg)

Abstract

The aim of this paper is to develop a dynamic model of migrations, in which migration is driven by size asymmetries between countries and by the relative preferences of consumers between private consumption and consumption of public goods. The dynamic trajectories heavily depend on the degree of attractiveness for public goods. We show that monotone migrations require sufficiently strong preferences for public goods, and can only be sustained from the small of the large countries. We identify the threshold value of the public goods’ intensity of preferences guaranteeing the survival of the small country. For weaker preference intensities, oscillating migrations may rise, but they finally converge to situation where both countries are of equal size

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Bibliographic Info

Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2008049.

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Length: 21
Date of creation: 01 Dec 2008
Date of revision:
Handle: RePEc:ctl:louvec:2008049

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Keywords: Migration; public goods; income tax;

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