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...

This paper develops a two-period, two-country model of trade in exhaustible resources. It studies how asymmetries in per-capita resource endowments and rates of time preference determine the equilibrium patter of international trade. The degree of intertemporal consumption substitution plays a...

A two-country portfolio balance model is developed to analyse the international transmission of monetary and commercial policy disturbances under flexible exchange rates. Emphasis is placed on the role of capital mobility, differences in money demand functions across countries, and national...

This paper develops a two-country model of international migration to study the implications of opening a minimum wage economy to migration. An inflow of foreign labour may lower the income of the country's native factors of production. Moreover, while an increase in the minimum wage reduces...

This paper analyses the dynamics of labour-market adjustment in response to sectoral shifts using a two sector model. We focus on the interaction between the level of wages and the productivity of finding a job. The model highlights to different speeds of adjustment under the assumption of...

This paper investigates the effects of a temporary change in government expenditures on private consumption and investment. The model employed is one of a closed economy populated by infinitely-lived, utility-maximizing individuals. The analysis focuses on the implications of alternative...

This paper employs a perfect-foresight model of intertemporal utility maximization in analysing the current-account effects of a temporary increase in government spending. The relationship between the marginal utility of private consumption and the supply of public goods in the economy plays a...