We investigate the effect of population aging on international factor flows in a political-economy framework. Political barriers to immigration in developed countries and insecure property rights in developing countries impede factor flows. Taking into account different generations’...

In this paper we investigate the twofold effect of demographics on international factor flows in a model with endogenous policy constraints on both foreign direct investment and migration. Factor price differences between industrialized and developing countries create economic incentives for...

The surge of maritime piracy in the Gulf of Aden is often related to lawlessness and poverty in Somalia. We set up a simple model to describe the choice of becoming a pirate in a setting with an industrialized and a developing country which both engage in fishing in the same waters. As a result...

To counter the effects of population aging in rich industrialized countries, raising immigration from and raising capital exports to younger developing countries are often seen as alternative solutions. In this paper, we explicitly account for mobility constraints in the form of immigration...

In this note we analyze how aging affects immigration policy. We set up a dynamic political-economy model of representative democracy in which the government of the destination country sets the immigration level to maximize aggregate welfare of the constituency. Aging, i.e. a decline in the...

In the face of rising old-age dependency ratios in industrialized countries like Germany, politicians and their electorates discuss the loosening of immigration policies as one policy option to ensure the sustainability of public social security systems. The question arises whether this policy...

This paper analyzes how population aging affects immigration policy in rich industrialized countries. It sets up a two-period model of a representative democracy with two overlapping generations. The government’s preferred immigration rate increases with the share of retirees in the...

The formation of party preferences is a complex and not yet fully understood process based on a number of factors. This process, which is of great interest for both social and political science, is usually studied using questionnaire data which has proven to be a very reliable yet often costly...