The Economic Value of A Passport: A Model of Citizenship and the Social Dividend in a Global Economy -
AbstractIn a world of fully mobile capital and highly immobile labour, citizenship is effectively an entitlement to the 'dividend' arising from the social infrastructure accumulated in a particular country of birth. The paper opens with the reasons why the passport (ie citizenship) can in consequence be considered as an economic asset with a value that can in principle be determined analytically. A simple endogenous growth model is set up which defines the level and growth of per capita income in a world economy where capital is fully mobile and labour is fully immobile, and where governments set a rate of taxation such as to achieve the optimal balance between the stocks of private capital and social infrastructure. The 'passport value' is then defined as the difference between national income net of capital charges, wage costs and taxes when divided equally among the population; and is shown to depend on per capita income, the rate of growth and the parameters of the production function. A preliminary estimate of the main variables in the model, and the scale of expenditure on social infrastructure, for a wide range of countries suggests what the order of magnitude of the 'value of a passport' might be. A brief section on the wider implications of the findings concludes.
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 Queen Elizabeth House, University of Oxford in its series QEH Working Papers with number qehwps04.
Date of creation:
Date of revision:
Contact details of provider:
Postal: Queen Elizabeth House 3 Mansfield Road, Oxford, OX1 3TB United Kingdom
Phone: +44 (1865) 281800
Fax: +44 (1865) 281801
Web page: http://www.qeh.ox.ac.uk/
More information through EDIRC
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rachel Crawford).
If references are entirely missing, you can add them using this form.