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Corporate How many cake-eaters? Chouette, on a du monde à dîner !

Author

Listed:
  • Favard, P.
  • Karp, L.

Abstract

we use a cake-eating model with a non-renewable resource and a backstop technology to describe the intertemporal effect of a sudden increase of the population level, e.g. due to migration. The migrants enter an economy in which there is already surplus labor, and they receive transfers from "natives". These assumptions imply that the present discounted value of natives’ welfare falls. The counterintuitive result is that the flow of natives’ utility can increase at the time of the population change.

Suggested Citation

  • Favard, P. & Karp, L., 2001. "Corporate How many cake-eaters? Chouette, on a du monde à dîner !," Cahiers du LASER (LASER Working Papers) 2001.03, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
    • Handle: RePEc:mop:lasrwp:2001.03
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    More about this item

    Keywords

    NONRENEWABLE RESOURCES ; CAKE-EATING MODELS; MIGRATION ; COMPARATIVE DYNAMICS;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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