Economics of Migration

Migration concerns a variety of private and§collective choices, which are of immense value to the§functioning of the market economy. This book provides§theoretical clarification to the issue with special§emphasis on the effects of migration of people. Three§types of analytical frameworks are used. The§Microeconomic Framework is based on a synthesis of§the classical models of labour migration and trade§policy. The short-run effects of taxation are§examined in close scrutiny. The Macroeconomic§Framework applies the Neo-Keynesian macroeconomic§model to the analysis of factor migration paying§attention to the market adjustment mechanism. In§examining the effects of local policies, the long§disgraced Adaptive Expectations Hypothesis is given§fresh interpretations. In the Club Theoretic§Framework, welfare in a locality depends on its size.§The competitive dynamics of the system is a product§of people s exit-type migration choices and their§collective voice-type choices. The need for§centralized policy intervention is also analyzed. The§leading intuition of the book is that migration§should be a vital element of spatial resource§allocation in the real-world context.