Migration networks are usually captured by the number of people from the migrant?s country in the host region. Using Mexican migration data, we analyze the effects of the usual network variable and two additional origin-village-specific variables on migrants? location choice.

This paper addresses the question: Why and where do immigrants cluster? We examine the relative importance and interaction of two alternative explanations of immigrant clustering: (1) network externalities and (2) herd behavior. We advance the theory by presenting a framework encompassing both...

Empirical studies in the migration literature have shown that migration enclaves (networks) negatively affect the language proficiency of migrants. These studies, however, ignore the choice of location as a function of language skills. Using data on Mexican migration to the US, we show that...

Hierarchical firms are enterprises with rigid internal job ladders. We examine the state enterprise as the prototypical hierarchical firm. In the state enterprise, promotion of employees through the internal hierarchy is determined by the workers’ allocation of time between rent seeking and...

Governments do not have perfect information regarding the priorities and the needs of different groups in the economy. This lack of knowledge opens the door for different groups to lobby the government in order to receive the government’s support. We set up a model of hierarchical contests and...

In this paper we develop a theory of “Kosher Wars” under which Rabbis (certifying authorities) compete to enhance the level of Jewish observation of their congregations. The level of observance can be seen as the Rabbi’s rents. Our rent-seeking model explains the establishment...

This paper addresses the question: Why and where do immigrants cluster? We examine the relative importance and interaction of two alternative explanations of immigrant clustering: (1) network externalities and (2) herd behavior. We advance the theory by presenting a framework encompassing both...

Governments do not have perfect information regarding the priorities and the needs of different groups in the economy. This lack of knowledge opens the door for different groups to lobby the government in order to receive the government's support. We set up a model of hierarchical contests and...

Empirical studies in the migration literature have shown that migration enclaves (networks) negatively affect the language proficiency of migrants. These studies, however, ignore the choice of location as a function of language skills. Using data on Mexican migration to the US, we show that...