In this paper, we present a dynamic general equilibrium model with two sectors: one aggregate firm produces consumption good and a second one investment good. We assume sector specific as well as aggregate ex- ternalities. Moreover, we account for variable capital utilization i.e. the...

Most of the literature on immigration sees it as a permanent phenomenon, which can best be contained by adopting strict policies of border closure. On the other hand, there is considerable historical documentation to show how often immigration is temporary. That is to say, immigrants stay for a...

This paper examines the decision process that leads destination countries to introduce selective immigration policies based on skill requirements. We show that in absence of policy implementation costs, destination countries’ preferences are polarized between complete openness and complete...