Migrations, public goods and taxes
AbstractThis paper examines how and why people migrate between two re- gions with asymmetric size. The agglomeration force comes from the scale economies in the provision of local public goods, whereas the disper- sion force comes from congestion in consumption of public goods. Public goods considered resemble club goods (or public goods with congestion) and people are heterogeneous in their migration costs. We find that the large countries can be destination of migrants for sufficiently high provision of public goods, even when the large country taxes too much. The high provision of public good offsets the congestion effect. While, the small country can be the destination of migrants for two reasons. Firstly, when public good supply is intermediate, people move to avoid congestion in the large country and to benefit from low taxation in the small one. Finally, when the provision of public goods is low, people move towards the small countries just to avoid congestion.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Research in Economic Analysis, University of Luxembourg in its series CREA Discussion Paper Series with number 11-13.
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: 162a avenue de la Faïencerie, L-1511 Luxembourg
Phone: (+352) 46 66 44
Fax: (+352) 46 66 44 ext 633
Web page: http://wwwen.uni.lu/research/fdef/crea
More information through EDIRC
Migration; public goods; congestion.;
Other versions of this item:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-15 (All new papers)
- NEP-GEO-2012-05-15 (Economic Geography)
- NEP-MIG-2012-05-15 (Economics of Human Migration)
- NEP-PBE-2012-05-15 (Public Economics)
- NEP-PUB-2012-05-15 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alesina, Alberto & Spolaore, Enrico, 1997.
"On the Number and Size of Nations,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(4), pages 1027-56, November.
- Fujita, M. & Thisse, J.-F., .
"Economics of agglomeration,"
CORE Discussion Papers RP
-1250, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Fujita,Masahisa & Thisse,Jacques-Francois, 2002. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9780521801386, December.
- Fujita, Masahisa & Thisse, Jacques-Francois, 1996. "Economics of Agglomeration," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 339-378, December.
- Fujita,Masahisa & Thisse,Jacques-Francois, 2002. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9780521805247, December.
- Hindriks, Jean & Peralta, Susana & Weber, Shlomo, 2008.
"Competing in taxes and investment under fiscal equalization,"
Journal of Public Economics,
Elsevier, vol. 92(12), pages 2392-2402, December.
- Hindriks, Jean J.G. & Peralta, Susana & Weber, Shlomo, 2007. "Competing in Taxes and Investment under Fiscal Equalization," CEPR Discussion Papers 6431, C.E.P.R. Discussion Papers.
- HINDRIKS, Jean & PERALTA, Susana & WEBER, Shlomo, 2006. "Competing in taxes and investment under fiscal equalization," CORE Discussion Papers 2006109, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jean, HINDRIKS & Susana, PERALTA & Sholmo, WEBER, 2006. "Competing in taxes and investment under fiscal equalization," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2006062, Université catholique de Louvain, Département des Sciences Economiques.
- Wilson, J.D., 1990.
"Tax Competition With Interregional Differences In Factor Endowments,"
4, John Deutsch Institute for the Study of Economic Policy.
- Wilson, John Douglas, 1991. "Tax competition with interregional differences in factor endowments," Regional Science and Urban Economics, Elsevier, vol. 21(3), pages 423-451, November.
- George J. Borjas, 2000. "Issues in the Economics of Immigration," NBER Books, National Bureau of Economic Research, Inc, number borj00-1.
- Burbidge, John B. & Myers, Gordon M., 1994. "Population mobility and capital tax competition," Regional Science and Urban Economics, Elsevier, vol. 24(4), pages 441-459, August.
- Kimberly Clausing, 2007. "Corporate tax revenues in OECD countries," International Tax and Public Finance, Springer, vol. 14(2), pages 115-133, April.
- Jacques-François Thisse & Tanguy van Ypersele, 1999.
"The Challenge Raised by Metropolitisation and Fiscal Competition in Economic Development,"
The World Economy,
Wiley Blackwell, vol. 22(9), pages 1201-1220, December.
- THISSE, Jacques-François & VAN YPERSELE, Tanguy, . "The challenge raised by metropolisation and fiscal competition in economic development," CORE Discussion Papers RP -1426, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bucovetsky, S., 1991. "Asymmetric tax competition," Journal of Urban Economics, Elsevier, vol. 30(2), pages 167-181, September.
- George J. Borjas, 2000. "Introduction to "Issues in the Economics of Immigration"," NBER Chapters, in: Issues in the Economics of Immigration, pages 1-14 National Bureau of Economic Research, Inc.
- Zissimos, Ben & Wooders, Myrna, 2008.
"Public good differentiation and the intensity of tax competition,"
Journal of Public Economics,
Elsevier, vol. 92(5-6), pages 1105-1121, June.
- Ben Zissimos & Myrna Wooders, 2003. "Public Good Differentiation and the Intensity of Tax Competition," Vanderbilt University Department of Economics Working Papers 0710, Vanderbilt University Department of Economics.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
- Thomas Liebig & Alfonso Sousa-Poza, 2005. "Taxation, Ethnic Ties and the Location Choice of Highly Skilled Immigrants," OECD Social, Employment and Migration Working Papers 24, OECD Publishing.
- Brueckner, Jan K., 2000. "A Tiebout/tax-competition model," Journal of Public Economics, Elsevier, vol. 77(2), pages 285-306, August.
- Wilson, John Douglas, 1997. "Property taxation, congestion, and local public goods," Journal of Public Economics, Elsevier, vol. 64(2), pages 207-217, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elisa Ferreira).
If references are entirely missing, you can add them using this form.