According to the latest figures from the United Nations,1 the number of migrants throughout the world has more than doubled since 1975. At the turn of this new century it is reported to stand at around 175 million persons (including refugees), or 2.9% of the global population. Still largely from...

We explore a political-economy model of labor subsidies, extending Meltzer and Richard's median-voter model to a dynamic setting. We explore only one source of heterogeneity: initial wealth. As a consequence, given an operative wealth effect, poorer agents work harder, and if the agent with...

In this paper we address the time-inconsistency of optimal debt policy—the incentive for a current government to “manipulate interest ratesâ€â€”raised in Lucas and Stokey’s celebrated 1983 paper. The literature that followed suggested various ways to fully overcome...