The canonical neoclassical model is insufficient to understand business cycle fluctuations in emerging market and developing economies (EMDEs). I reformulate the models proposed by Aguiar and Gopinath (2007) and Neumeyer and Perri (2005) in simple settings that can be used to do...

The current European Union (EU) asylum policy is widely seen as ineffective and unfair. We propose an EU-wide market for tradable quotas on both refugees and asylum seekers coupled with a matching mechanism linking countries’ and migrants’ preferences. We show that the proposed system can go...

We study migration policy enforcement by an elected government. The policymaker faces uncertainty on the supply of migrants, but has more information than the public on its preferences and the extent and effectiveness of its enforcement activities. We show that a utilitarian government...

Studies for major immigrant-receiving countries provide evidence on the comparative economic performance of immigrant classes (skill-, kinship-, and humanitarian-based). Developed countries are increasingly competing for high-skilled immigrants, who perform better in the labor market. However,...

We study the interaction between the optimal immigration policy of a host country and education policy of a source country in a model of international migration of skilled workers. Acquisition of human capital is driven by the academic and career opportunities at home and abroad. Greater...

This paper studies why illegal immigration is widespread. We develop a political agency model in which a politician decides on an immigration target and its enforcement, facing uncertainty on the supply of migrants. Illegal immigration can arise for two reasons: the policy maker may be unable to...