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Public goods’ attractiveness and migrations

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  • Jean Gabszewicz
  • Salome Gvetadze
  • Didier Laussel
  • Patrice Pieretti

    ()
    (CREA, University of Luxembourg)

Abstract

The aim of this paper is to develop a dynamic model of migra- tions, in which migration is driven by size asymmetries between coun- tries and by the relative preferences of consumers between private consumption and consumption of public goods. The dynamic trajec- tories heavily depend on the degree of attractiveness for public goods We show that monotone migrations require sufficiently strong pref- erences for public goods, and can only be sustained from the small to 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 arise, but they finally converge to situation where both countries are of equal size.

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Bibliographic Info

Paper provided by Center for Research in Economic Analysis, University of Luxembourg in its series CREA Discussion Paper Series with number 08-12.

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Date of creation: 2008
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Handle: RePEc:luc:wpaper:08-12

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