This paper develops a simple two-country model of illegal immigration to examine the interaction among migrant labour, unemployment rates, and spending by the host country on enforcement. The analysis focusses on the dynamics of immigration policy and its role in determining the mechanism by...

This paper examines the effects of a minimum wage on real income and the composition of the economy's labour force, and studies various policy measures to deal with unemployment problems. It is possible to reduce unemployment by subsidizing education and health services. Policies to restore the...

This paper analyses the real and monetary effects of an increase in the price of a traded intermediate input. The analysis mainly focuses on the effects of an increase in the price of the intermediate input on the the distribution of income, relative prices, production levels, the balance of...

This paper studies an economy where agents expect the floating-rate regime to be interrupted on a specific future date by a transitional fixed-rate policy. When the new peg is not revealed in advance, the path of the floating rate in anticipation of pegging is determined by the interaction...

The paper examines the interaction between a resource-exporting and a resource-importing country. The exporter chooses an optimal depletion rate and decides the allocation of the extracted resource between exports and domestic use. Optimal management from a national view entails inefficiency...

This paper studies the effects of a temporary import quota on the real exchange rate and the current account of a small-open economy populated by utility-maximizing individuals. The optimal current-account response is determined by the interactions between two opposing forces: the intertemporal...

This note extends Rivera-Batiz (1982) to examine the role of remittances in determining the effects of migration on welfare of the remaining residents in a small open economy. If the flow of remittances exceeds a certain critical value, the remaining residents benefit from migration, even if...

This paper develops a simple two-country model of international migration in a general equilibrium framework. By distinguishing individuals in terms of ability and age, the model enables an examination of equilibrium flows of migrant, factor rewards in the two economies and also the factors that...

This paper examines the problem of guest-worker migration in an economy populated by identical, utility-maximizing agents with finite lives. The decision to migrate, the savings rate while abroad, and the migrants stay in the foreign country as viewed as the solution to an intertemporal...

This paper studies the dynamics of the balance of payments in response to policy disturbances under the assumption that the central bank devalues the country's currency over time at a constant preannounced rate. Depending on the model parameters, a given distribution may result in qualitatively...