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Public goods’ attractiveness and migrations

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  • GABSZEWICZ , Jean

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • Gvetadze, Salome

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • Laussel, Didier
  • Pieretti, Patrice

Abstract

The aim of this paper is to develop a dynamic model of migrations, in which migration is driven by size asymmetries between countries and by the relative preferences of consumers between private consumption and consumption of public goods. The dynamic trajectories heavily depend on the degree of attractiveness for public goods We show that monotone migrations require sufficiently strong preferences for public goods, and can only be sustained from the small to the large countries. We identify the threshold value of the public goods’ intensity of preferences guaranteeing the survival of the small country. For weaker preference intensities, oscillating migrations may arise, but they finally converge to situation where both countries are of equal size.

Suggested Citation

  • GABSZEWICZ , Jean & Gvetadze, Salome & Laussel, Didier & Pieretti, Patrice, 2008. "Public goods’ attractiveness and migrations," LIDAM Discussion Papers CORE 2008080, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2008080
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    Keywords

    migration; public goods; income tax.;
    All these keywords.

    JEL classification:

    • H - Public Economics

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