This paper examines the decision process that leads destination countries to introduce selective immigration policies based on skill requirements. We show that in absence of policy implementation costs, destination countries’ preferences are polarized between complete openness and complete...

We consider an infinite horizon economy with representative agent, aggregate externalities on capital/labor ratio and liquidity constraint on income taxes. We show that the stationary rate of growth can be indeterminate for a wide range of elasticities of intertemporal substitution in...

An increasing literature encourages the use of selective immigration policies as a tool to promote incentives to education. It is argued that, since not everybody is allowed to migrate, under these policies a poor country may well turn out with more human capital than in autarchy. The implicit...

The aim of this paper is to examine whether the development of waste recycling activities can be a source of economic fluctuations. We assume that the recycling sector has four fundamental characteristics. (i) The production factors are restricted by the production of the last period. (ii) These...

This paper studies the political economy of resource management in an OLG framework with an intertemporal externality problem. The externality arises because a common resource used for production is depleted by production of dirtygoods. An intergenerational conict arises because the young...

We study how immigration policies are determined under voting in a model where immigration redistributes income from wages to capital. Migration decisions are endogenous, there exist border enforcement costs and preference for home-country consumption. We model the migration policy as a pure...

This paper investigates the role of performance voting in solving the capital levy problem. In a representative democracy, voters can use elections to protect their property by holding politicians accountable for the tax policies they implement. We characterize the set of tax policies that can...

In this paper, we present a dynamic general equilibrium model with two sectors: one aggregate firm produces consumption good and a second one investment good. We assume sector specific as well as aggregate ex- ternalities. Moreover, we account for variable capital utilization i.e. the...

Most of the literature on immigration sees it as a permanent phenomenon, which can best be contained by adopting strict policies of border closure. On the other hand, there is considerable historical documentation to show how often immigration is temporary. That is to say, immigrants stay for a...

While most of the literature concerned with indeterminacy considers a representative agent, some recent works have investigated the role of heterogenous agents on dynamics. This paper adds a contribution to the debate, stressing the effects of heterogeneity in consumers’ preferences within an...