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Who Contributes? A Strategic Approach to a European Immigration Policy

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  • Russo, Giuseppe
  • Senatore, Luigi

Abstract

According to the Lisbon Treaty the increasing cost of enforcing the European border against immigration shall be shared among the EU members. Nonetheless, the Treaty is rather vague with respect to the "appropriate measures" to adopt in order to distribute the financial burden. Members who do not share their borders with source countries have an incentive to free ride on the other countries. We study a contribution game where a northern government and a southern government minimize a loss function with respect to their national immigration target. We consider both sequential and simultaneous decisions and we show that the contribution of both governments is positive when their immigration targets are not too different. We show that total contribution is higher when decisions are simultaneous, but the conditions for both contributions to be positive are less restrictive in the sequential framework.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33421.

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Date of creation: Aug 2011
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Handle: RePEc:pra:mprapa:33421

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Keywords: Policy making; Government expenditures; Local government expenditures; Federalism;

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References

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  1. Russo, Giuseppe, 2008. "Voting over Selective Immigration Policies with Immigration Aversion," MPRA Paper 6845, University Library of Munich, Germany.
  2. Paolo E. Giordani & Michele Ruta, 2009. "The Immigration Policy Puzzle," Working Papers CELEG 0905, Dipartimento di Economia e Finanza, LUISS Guido Carli.
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  4. Claus-Jochen Haake & Tim Krieger & Steffen Minter, 2013. "On the institutional design of burden sharing when financing external border enforcement in the EU," International Economics and Economic Policy, Springer, vol. 10(4), pages 583-612, December.
  5. d'ASPREMONT, Claude & GERARD-VARET, Louis-André, . "Incentives and incomplete information," CORE Discussion Papers RP -354, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  8. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  9. 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.
  10. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR & CES & MSH, vol. 20(44), pages 629-703, October.
  11. Russo, Giuseppe & Senatore, Luigi, 2011. "A Note on Contribution Games with Loss Functions," MPRA Paper 33423, University Library of Munich, Germany.
  12. Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October.
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  14. Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-98, September.
  15. Facchini, Giovanni & Willmann, Gerald, 2005. "The political economy of international factor mobility," Journal of International Economics, Elsevier, vol. 67(1), pages 201-219, September.
  16. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
  17. Varian, Hal R., 1994. "Sequential contributions to public goods," Journal of Public Economics, Elsevier, vol. 53(2), pages 165-186, February.
  18. Warr, Peter G., 1983. "The private provision of a public good is independent of the distribution of income," Economics Letters, Elsevier, vol. 13(2-3), pages 207-211.
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Cited by:
  1. Senatore, L, 2011. "Public Good Provision with Convex Costs," MPRA Paper 36984, University Library of Munich, Germany.

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