Public goods .nance and immigration
- Iturbe-Ormaetxe Cortajarena, Iñigo
- Gabriel Romero, José
Argitaletxea: Universidad de Santiago de Compostela
ISBN: 978-84-695-1574-7
Argitalpen urtea: 2012
Orrialdeak: 54
Biltzarra: Encuentro de Economía Pública (19. 2012. Santiago de Compostela)
Mota: Biltzar ekarpena
Laburpena
In this paper we present and test a model in which the interaction between community decisions, the political process, and agents. preferences determine the shape of immigration and social (tax-expenditure) policies. Our theoretical analysis shows that when the middle class is decisive, political competition leads to over-provision of the (local) public good and to immigration quotas that result below the social optimal level, which makes natives more tolerant to the arrival of (low-skill) immigrants.