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...

A perfect-foresight model of intertemporal utility maximization is used to analyze 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 is shown to play a...

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...