In this paper we introduce the notion of herd effects or information cascades into models of migration-related phenomena. We consider individuals making sequential decisions regarding emigration. Each individual receives a signal which conveys private information regarding preferred locations...

The economic theory of defense has traditionally described public safety as achieved through investments that deter adversaries. Deterrence is however ineffective, and preemptive defense is required, when a population of intended victims confronts supreme-value suicide terror. A moral dilemma...

The social contract of the welfare state can be strained by the arrival of immigrants who receive welfare payments financed by citizens' taxes. We show, however, that the presence of unemployed immigrants receiving welfare payments is consistent with social harmony. The social harmony, which is...

Governments have rarely been successful in adhering to intended consequences of temporary guest-worker policies. The conduit for legal entry of workers has resulted in a population of illegal workers, as the initially legal workers make the move to illegal employment. In this paper we examine...

This Paper surveys the ways in which departures from free trade have been treated in economic analysis. Normative theories linked to classical arguments have shown how departure from free trade can enhance efficiency and increase social welfare. Positive perspectives with links to...

We consider a country where a king assigns benefits in accordance with privilege determined by the population’s proximity to the throne. People have different relative advantages in seeking privilege and in productive activity. The nature of the contest for privilege determines whether, in...