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Who Contributes? A Strategic Approach to a European Immigration Policy

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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 border country and a central country minimize a loss function with respect to their national immigration target. We consider both sequential and simultaneous decisions and we show that joint contribution occurs only if the immigration targets are not too different. Total contribution is higher when decisions are simultaneous, but the sequential framework achieves joint contribution under a wider difference in the national targets.

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Bibliographic Info

Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 306.

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Date of creation: 08 Feb 2012
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Handle: RePEc:sef:csefwp:306

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

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  1. Martin A. Schain, 2010. "The shaping of European immigration policy during the past decade," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 2(1), pages 112-124, January.
  2. Karin Mayr & Steffen Minter & Tim Krieger, 2009. "Policies on illegal immigration in a federation," Vienna Economics Papers 0909, University of Vienna, Department of Economics.
  3. Giuseppe Russo, 2008. "Voting over Selective Immigration Policies with Immigration Aversion," EERI Research Paper Series EERI_RP_2008_14, Economics and Econometrics Research Institute (EERI), Brussels.
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  7. Varian, Hal R., 1994. "Sequential contributions to public goods," Journal of Public Economics, Elsevier, vol. 53(2), pages 165-186, February.
  8. Giordani, Paolo & Ruta, Michele, 2009. "The Immigration Policy Puzzle," MPRA Paper 23584, University Library of Munich, Germany.
  9. Claus-Jochen Haake & Tim Krieger & Steffen Minter, 2010. "On the institutional design of burden sharing when financing external border enforcement in the EU," Working Papers 25, University of Paderborn, CIE Center for International Economics.
  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.
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  12. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
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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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