This article develops a model that examines the role of cultural conflict in immigration and immigration policy. Cultural differences lead to frictions between natives and immigrants unless the latter make a costly investment to assimilate. This article’s key contribution is the joint analysis...

1. Introduction -- 2.Methodology and stylised facts -- 3. Labour input and labour income -- 4. Capital stock and capacity utilisation -- 5. Growth and development accounting -- 6. The neoclassical growth model -- 7. Markets and distortions -- 8. Growth and the financial environment -- 9. Credit...

The paper analyses the population dynamics of a country that has two ethnic groups, a minority and a majority, and minority members can choose to assimilate into the majority. Depending on the minority's size, the long-run outcome can be full or no assimilation. Under certain parameter values...