Indeterminacy in a dynamic small open economy with international migration
This paper presents a dynamic small open economy version of the standard neoclassical exogenous growth model with international migration. It considers both the case of perfect world capital markets and the case of imperfect capital markets and shows that local indeterminacy always arises independently of the capital market regime. To study the dynamic implications of migration on domestic consumption, current account and capital accumulation, we simulate the model numerically by distinguishing three different scenarios depending on whether the initial immigration ratio is larger, equal or smaller than its steady-state value. In the case of perfect world capital markets, we find that migration has only a temporary impact on capital accumulation, but a permanent impact on domestic consumption and foreign debt. Instead, in the case of imperfect world capital markets, we find that migration has only temporary impacts on all the main macroeconomic variables.
|Date of creation:||07 Jul 2012|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hayashi, Fumio, 1982.
"Tobin's Marginal q and Average q: A Neoclassical Interpretation,"
Econometric Society, vol. 50(1), pages 213-224, January.
- Fumio Hayashi, 1981. "Tobin's Marginal q and Average a : A Neoclassical Interpretation," Discussion Papers 457, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Ather H. Akbari & Don J. Devoretz, 1992. "The Substitutability of Foreign-Born Labour in Canadian-Production: Circa 1980," Canadian Journal of Economics, Canadian Economics Association, vol. 25(3), pages 604-614, August.
- Theodore Palivos, 2007.
"Welfare effects of illegal immigration,"
Discussion Paper Series
2007_01, Department of Economics, University of Macedonia, revised Dec 2007.
- Asadul, Islam, 2008.
"The Substitutability of Labor between Immigrants and Natives in the Canadian Labor Market: Circa 1995,"
7164, University Library of Munich, Germany.
- Asadul Islam, 2009. "The substitutability of labor between immigrants and natives in the Canadian labor market: circa 1995," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 199-217, January.
- David Card, 2009.
"Immigration and Inequality,"
NBER Working Papers
14683, National Bureau of Economic Research, Inc.
- Liu, Xiangbo, 2010. "On the macroeconomic and welfare effects of illegal immigration," Journal of Economic Dynamics and Control, Elsevier, vol. 34(12), pages 2547-2567, December.
- Ortigueira, Salvador & Santos, Manuel S, 1997. "On the Speed of Convergence in Endogenous Growth Models," American Economic Review, American Economic Association, vol. 87(3), pages 383-399, June.
- Moy, Hon Man & Yip, Chong K., 2006. "The simple analytics of optimal growth with illegal migrants: A clarification," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2469-2475, December.
- Borjas, George J, 1986.
"The Sensitivity of Labor Demand Functions to Choice of Dependent Variable,"
The Review of Economics and Statistics,
MIT Press, vol. 68(1), pages 58-66, February.
- George J. Borjas, 1985. "The Sensitivity of Labor Demand Functions to Choice of Dependent Variable," NBER Working Papers 1624, National Bureau of Economic Research, Inc.
- Rodriguez, Carlos Alfredo, 1975. "On the Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 83(5), pages 1065-1072, October.
- William C. Brainard & James Tobin, 1968. "Pitfalls in Financial Model-Building," Cowles Foundation Discussion Papers 244, Cowles Foundation for Research in Economics, Yale University.
- Weder, Mark, 2000.
"Indeterminacy in a Small Open Economy Ramsey Growth Model,"
CEPR Discussion Papers
2585, C.E.P.R. Discussion Papers.
- Weder, Mark, 2001. "Indeterminacy in a Small Open Economy Ramsey Growth Model," Journal of Economic Theory, Elsevier, vol. 98(2), pages 339-356, June.
- Theodore Palivos & Chong K. Yip, 2007.
"Illegal Immigration in a Heterogeneous Society,"
Departmental Working Papers
_188, Chinese University of Hong Kong, Department of Economics.
- Douglas Gollin, 2002.
"Getting Income Shares Right,"
Journal of Political Economy,
University of Chicago Press, vol. 110(2), pages 458-474, April.
- Alexander Kemnitz & Berthold U. Wigger, 2000.
"Growth and Social Security: The Role of Human Capital,"
CSEF Working Papers
33, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Kemnitz, Alexander & Wigger, Berthold U., 2000. "Growth and social security: the role of human capital," European Journal of Political Economy, Elsevier, vol. 16(4), pages 673-683, November.
- Borjas, George J, 1983. "The Substitutability of Black, Hispanic, and White Labor," Economic Inquiry, Western Economic Association International, vol. 21(1), pages 93-106, January.
- Buiter, Willem H., 1982.
"Predetermined and non-predetermined variables in rational expectations models,"
Elsevier, vol. 10(1-2), pages 49-54.
- Willem H. Buiter, 1983. "Predetermined and Non-Predetermined Variables in Rational Expectations Models," NBER Technical Working Papers 0021, National Bureau of Economic Research, Inc.
- Borjas, George J, 1999.
"Immigration and Welfare Magnets,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(4), pages 607-637, October.
- Galor, Oded, 1986. "Time preference and international labor migration," Journal of Economic Theory, Elsevier, vol. 38(1), pages 1-20, February.
- Hazari, Bharat R. & Sgro, Pasquale M., 2003.
"The simple analytics of optimal growth with illegal migrants,"
CEPREMAP Working Papers (Couverture Orange)
- Hazari, Bharat R. & Sgro, Pasquale M., 2003. "The simple analytics of optimal growth with illegal migrants," Journal of Economic Dynamics and Control, Elsevier, vol. 28(1), pages 141-151, October.
- Chassamboulli, Andri & Palivos, Theodore, 2010.
""Give me your Tired, your Poor," so I can Prosper: Immigration in Search Equilibrium,"
32379, University Library of Munich, Germany.
- Andri Chassamboulli & Theodore Palivos, 2010. "“Give me your Tired, your Poor,” so I can Prosper: Immigration in Search Equilibrium," University of Cyprus Working Papers in Economics 12-2010, University of Cyprus Department of Economics.
- Theodore Palivos & Chong Yip, 2010. "Illegal immigration in a heterogeneous labor market," Journal of Economics, Springer, vol. 101(1), pages 21-47, September.
- Theodore Palivos & Jianpo Xue & Chong K. Yip, 2011. "Illegal Immigration, Factor Substitution and Economic Growth," Discussion Paper Series 2011_10, Department of Economics, University of Macedonia, revised Jun 2011.
- Eicher, Theo S & Turnovsky, Stephen J, 1999. "Non-scale Models of Economic Growth," Economic Journal, Royal Economic Society, vol. 109(457), pages 394-415, July.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40013. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.