Advanced Search
MyIDEAS: Login

Coordination Failures in Immigration Policy

Contents:

Author Info

  • Paolo Giordani

    ()
    (Università Luiss "Guido Carli")

  • Michele Ruta

    ()
    (World Trade Organization)

Abstract

We propose a theoretical framework for analyzing the problems associated to unilateral immigration policy in receiving countries and for evaluating the grounds for reform of international institutions governing immigration. We build a model with multiple destination countries and show that immigration policy in one country is influenced by measures adopted abroad as migrants choose where to locate (in part) in response to differences in immigration policy. This interdependence gives rise to a leakage effect of immigration policy, an international externality well documented in the empirical literature. In this environment, immigration policy becomes strategic and unilateral behavior may lead to coordination failures, where receiving countries are stuck in welfare inferior equilibria. We then study the conditions under which a coordination failure is more likely to emerge and argue that multilateral institutions that help receiving countries make immigration policy commitments would address this inefficiency.

Download Info

If 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.
File URL: http://static.luiss.it/RePEc/pdf/lleewp/1190.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Dipartimento di Economia e Finanza, LUISS Guido Carli in its series Working Papers LuissLab with number 1190.

as in new window
Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:lui:lleewp:1190

Contact details of provider:
Postal: Viale Romania 32 - 00197 Roma
Phone: 06 85225.550
Fax: 06 85225.973
Email:
Web page: http://ricerca.economiaefinanza.luiss.it/
More information through EDIRC

Related research

Keywords: Immigration policy; cross-border externalities; coordination failures; multilateral institutions.;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Blume, A., 1996. "Communication, Risk and Efficiency in Games," Working Papers 96-03, University of Iowa, Department of Economics.
  2. O'Rourke, Kevin H. & Sinnott, Richard, 2006. "The determinants of individual attitudes towards immigration," European Journal of Political Economy, Elsevier, vol. 22(4), pages 838-861, December.
  3. Gordon H. Hanson, 2009. "The Governance of Migration Policy," Human Development Research Papers (2009 to present) HDRP-2009-02, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.
  4. Ortega, Francesc, 2005. "Immigration quotas and skill upgrading," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1841-1863, September.
  5. Herbert Brücker & Philipp JH Schröder, 2011. "Migration regulation contagion," European Union Politics, , vol. 12(3), pages 315-335, September.
  6. John Huyck & Raymond Battalio & Frederick Rankin, 2007. "Evidence on learning in coordination games," Experimental Economics, Springer, vol. 10(3), pages 205-220, September.
  7. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384.
  8. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR & CES & MSH, vol. 20(44), pages 629-703, October.
  9. Blume, Andreas & Ortmann, Andreas, 2007. "The effects of costless pre-play communication: Experimental evidence from games with Pareto-ranked equilibria," Journal of Economic Theory, Elsevier, vol. 132(1), pages 274-290, January.
  10. Christian Dustmann & Ian Preston, 2000. "Racial and Economic Factors in Attitudes to Immigration," Econometric Society World Congress 2000 Contributed Papers 0839, Econometric Society.
  11. Cooper, Russell W. & Haltiwanger, John Jr., 1992. "Macroeconomic implications of production bunching : Factor demand linkages," Journal of Monetary Economics, Elsevier, vol. 30(1), pages 107-127, October.
  12. Van Huyck John B. & Battalio Raymond C. & Beil Richard O., 1993. "Asset Markets as an Equilibrium Selection Mechanism: Coordination Failure, Game Form Auctions, and Tacit Communication," Games and Economic Behavior, Elsevier, vol. 5(3), pages 485-504, July.
  13. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
  14. Bagwell,K. & Staiger,R.W., 1998. "An economic theory of GATT," Working papers 15, Wisconsin Madison - Social Systems.
  15. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  16. Van Huyck, John B & Battalio, Raymond C & Beil, Richard O, 1990. "Tacit Coordination Games, Strategic Uncertainty, and Coordination Failure," American Economic Review, American Economic Association, vol. 80(1), pages 234-48, March.
  17. Cooper, Russell, et al, 1992. "Communication in Coordination Games," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 739-71, May.
  18. Gordon H. Hanson, 2009. "The Economic Consequences of the International Migration of Labor," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 179-208, 05.
  19. Facchini, Giovanni & Willmann, Gerald, 2005. "The political economy of international factor mobility," Journal of International Economics, Elsevier, vol. 67(1), pages 201-219, September.
  20. David de la Croix & Frederic Docquier, 2010. "An Incentive Mechanism to Break the Low-skill Immigration Deadlock," CReAM Discussion Paper Series 1008, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  21. Nuno Limao & Kamal Saggi, 2011. "Size Inequality, Coordination Externalities and International Trade Agreements," NBER Working Papers 17603, National Bureau of Economic Research, Inc.
  22. Jim Dolmas & Gregory W. Huffman, 2004. "On The Political Economy Of Immigration And Income Redistribution," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(4), pages 1129-1168, November.
  23. Giovanni Facchini & Oliver Lorz & Gerald Willmann, 2006. "Asylum seekers in Europe: the warm glow of a hot potato," Journal of Population Economics, Springer, vol. 19(2), pages 411-430, June.
  24. Argenton, C. & Müller, W., 2009. "Collusion in Experimental Bertrand Duopolies with Convex Costs: The Role of Information and Cost Asymmetry," Discussion Paper 2009-87, Tilburg University, Center for Economic Research.
  25. Andersson, Ola & Argenton, Cédric & Weibull, Jörgen, 2010. "Robustness to strategic uncertainty in price competition," Working Paper Series in Economics and Finance 0726, Stockholm School of Economics, revised 08 Apr 2010.
  26. Timothy J. Hatton, 2007. "Should we have a WTO for international migration?," Economic Policy, CEPR & CES & MSH, vol. 22, pages 339-383, 04.
  27. Cahuc, Pierre & Kempf, Hubert, 1997. "Alternative Time Patterns of Decisions and Dynamic Strategic Interactions," Economic Journal, Royal Economic Society, vol. 107(445), pages 1728-41, November.
  28. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
  29. Crawford, Vincent, 1998. "A Survey of Experiments on Communication via Cheap Talk," Journal of Economic Theory, Elsevier, vol. 78(2), pages 286-298, February.
  30. Belot, Michèle & Hatton, Timothy J., 2008. "Immigrant Selection in The OECD," CEPR Discussion Papers 6675, C.E.P.R. Discussion Papers.
  31. AMIR, Rabah, 1994. "Cournot Oligopoly and the Theory of Supermodular Games," CORE Discussion Papers 1994013, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  32. Paolo E. Giordani & Michele Ruta, 2012. "Self-Confirming Immigration Policy," CESifo Working Paper Series 3762, CESifo Group Munich.
  33. Bagwell, Kyle & Ramey, Garey, 1994. "Advertising and Coordination," Review of Economic Studies, Wiley Blackwell, vol. 61(1), pages 153-72, January.
  34. Claudia Goldin, 1994. "The Political Economy of Immigration Restriction in the United States, 1890 to 1921," NBER Chapters, in: The Regulated Economy: A Historical Approach to Political Economy, pages 223-258 National Bureau of Economic Research, Inc.
  35. Amy Glass & Kamal Saggi, 2000. "Coordinating FDI Policies among Host Countries," Working Papers 00-04, Ohio State University, Department of Economics.
  36. Bryant, John, 1983. "A Simple Rational Expectations Keynes-Type Model," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 525-28, August.
  37. Abbink, Klaus & Brandts, Jordi, 2008. "24. Pricing in Bertrand competition with increasing marginal costs," Games and Economic Behavior, Elsevier, vol. 63(1), pages 1-31, May.
  38. Joseph Farrell & Matthew Rabin, 1996. "Cheap Talk," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 103-118, Summer.
  39. Timothy J. Hatton, 2004. "Seeking asylum in Europe," Economic Policy, CEPR & CES & MSH, vol. 19(38), pages 5-62, 04.
  40. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  41. Ryan Bubb & Michael Kremer & David I. Levine, 2011. "The Economics of International Refugee Law," The Journal of Legal Studies, University of Chicago Press, vol. 40(2), pages 367 - 404.
  42. Dastidar, Krishnendu Ghosh, 1995. "On the Existence of Pure Strategy Bertrand Equilibrium," Economic Theory, Springer, vol. 5(1), pages 19-32, January.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Paolo E. Giordani & Michele Ruta, 2012. "Self-Confirming Immigration Policy," CESifo Working Paper Series 3762, CESifo Group Munich.
  2. Simone Bertoli & Jesus Fernández-Huertas Moraga, 2012. "Visa Policies, Networks and the Cliff at the Border," Working Papers 2012-12, FEDEA.
  3. Floriana Cerniglia & Laura Pagani, 2014. "Political knowledge and attitudes toward (de)centralization in Europe," Working Papers 272, University of Milano-Bicocca, Department of Economics, revised Apr 2014.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:lui:lleewp:1190. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanna Vallanti).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.