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.
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Paper provided by LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1 in its series Cahiers du LASER (LASER Working Papers) with number
2001.03.
Length: 15 pages Date of creation: 2001 Date of revision: Handle: RePEc:mop:lasrwp:2001.03
Contact details of provider: Postal: Université de Montpellier 1, Faculté des Sciences Economiques, LASER, Av. de la Mer - Espace Richter, CS 79606, 34960 Montpellier Cedex 2, France Web page: http://www.laser.univ-montp1.fr More information through EDIRC
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Find related papers by 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