Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75530
Authors: 
Michael, Michael S.
Hatzipanayotou, Panos
Year of Publication: 
2000
Series/Report no.: 
CESifo Working Paper 347
Abstract: 
We construct a general equilibrium trade model of a two-class small open host or source country. When consumption tax revenue finances the provision of a public good, marginal migration reduces social welfare in the source country and raises it in the host. When consumption tax revenue is equally distributed among domestic households in each country, then migration has an ambiguous impact on social welfare in either country. When tariff revenue in either country is either equally distributed among domestic households, or it is used to finance the provision of a public good, then migration has an ambiguous effect on social welfare in the host country, and is expected to reduce social welfare in the source.
Subjects: 
International migration
taxes
tariffs
income transfers
welfare
Document Type: 
Working Paper

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