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Who Contributes? A Strategic Approach to a European Immigration Policy

  • Russo, Giuseppe
  • Senatore, Luigi

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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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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  1. Giuseppe Russo & Luigi Senatore, 2011. "A Note on Contribution Games with Loss Functions," CSEF Working Papers 302, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  2. Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-98, September.
  3. d'Aspremont, Claude & Gerard-Varet, Louis-Andre, 1979. "Incentives and incomplete information," Journal of Public Economics, Elsevier, vol. 11(1), pages 25-45, February.
  4. Karin Mayr & Steffen Minter & Tim Krieger, 2009. "Policies on illegal immigration in a federation," Working Papers CIE 23, University of Paderborn, CIE Center for International Economics.
  5. Russo, Giuseppe, 2008. "Voting over Selective Immigration Policies with Immigration Aversion," MPRA Paper 6845, University Library of Munich, Germany.
  6. 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.
  7. 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.
  8. 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.
  9. Varian, Hal R., 1994. "Sequential contributions to public goods," Journal of Public Economics, Elsevier, vol. 53(2), pages 165-186, February.
  10. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
  11. Paolo E. Giordani & Michele Ruta, 2009. "The Immigration Policy Puzzle," Working Papers CELEG 0905, Dipartimento di Economia e Finanza, LUISS Guido Carli.
  12. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  13. Facchini, Giovanni & Willmann, Gerald, 2005. "The political economy of international factor mobility," Journal of International Economics, Elsevier, vol. 67(1), pages 201-219, September.
  14. 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 CIE 25, University of Paderborn, CIE Center for International Economics.
  15. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR;CES;MSH, vol. 20(44), pages 629-703, October.
  16. 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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