IDEAS home Printed from https://ideas.repec.org/a/vep/journl/y2005v113i1p93-130.html
   My bibliography  Save this article

Fiscal Policy in Infinite-Horizon Endogenous Growth Models: A Survey

Author

Listed:
  • Massimiliano MARZO

    (Universita' di Bologna)

Abstract

We study how immigration policies are determined under voting in a two-country model where immigration redistributes income from wages to capital. Migration decisions are endogenous, there exist border enforcement costs and preference for home-country consumption. We model the migration policy as a pure entry rationing rather than a necessarily porous screening system. Unlike the existing results of polarization, our findings show that preferences over frontier closure are distributed on a continuum, going from total closure to total openness. Thus, the Condorcet winning immigration policy may well be an interior solution. Our results fit the real-life observation that both perfect closure and perfect openness are rare events. We also study the case of a referendum over two alternative policies and show that its outcome depends upon the location of the median voter with respect to the individual indifferent between the two alternatives.

Suggested Citation

  • Massimiliano MARZO, 2005. "Fiscal Policy in Infinite-Horizon Endogenous Growth Models: A Survey," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 113(1), pages 93-130.
  • Handle: RePEc:vep:journl:y:2005:v:113:i:1:p:93-130
    as

    Download full text from publisher

    File URL: http://riss.vitaepensiero.it/scheda-articolo_digital/massimiliano-marzo/fiscal-policy-in-infinite-horizon-endogenous-growth-models-a-survey-000518_2005_0001_0093-150810.html
    Download Restriction: Yes

    More about this item

    Keywords

    growth; factor input taxes; consumption and investment taxes; two sector models; optimal taxation.;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vep:journl:y:2005:v:113:i:1:p:93-130. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vep - Vita e Pensiero). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.