75 research outputs found

    An Extended Solow Growth Model with Emigration: Transitional Dynamics and Skills Complementarity

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    In this paper we develop an extended Solow growth model with skilled labor emigration which aggregates different labor types from strict complementarity to perfect substitution. Except in two particular cases, balanced growth paths can only be attained asymptotically. We therefore derive an analytical characterization of the transitional dynamics of the model. We are thus able to study the impact of labor elasticity of substitution on the time pattern of per capita income in the country that experiences brain drain. Simulations show that the shape of per capita trajectory depends crucially on the degree of complementarity (substitutability) between labor skills. Given that no income trajectory dominates the others, there is room for policy issues by influencing the elasticity of substitution (Klump and Preissler, 2000).Brain drain

    Brain drain and factor complementarity

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    In this paper we develop a neoclassical growth model that aggregates different types of labor skills from strict complementarity to perfect substitution. After having derived general balanced growth conditions and developed explicit growth paths for capital and aggregate labor force, the model serves to qualitatively study the effect of brain drain on income and wages of the source country.Brain drain, growth, complementary, migration

    On tax competition, public goods provision and jurisdictions’ size

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    tax competition, public goods competition, spatial competition, foreign direct investments, country size

    The shortage of medical workers in sub-Saharan Africa and substitution policy

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    Substitution policies are strategies sometimes chosen in Sub-Saharan Africa for curtailing the shortage of health professionals especially caused by the outflow of medical personnel. The aim of our contribution is to propose a way to assess the merits and drawbacks of substitution policies by developing a simple growth model of healthcare productivity with medical brain drain. Within this framework, we use a medical care production function of the CES type which aggregates low and high specialized health workers. We then run simulations which compare scenarios with and without substitution strategies by using data from the Ghana’s medical sector.medical shortage, healthcare policy, substitution policy

    Public goods’ attractiveness and migrations

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    The aim of this paper is to develop a dynamic model of migrations, in which migration is driven by size asymmetries between countries and by the relative preferences of consumers between private consumption and consumption of public goods. The dynamic trajectories heavily depend on the degree of attractiveness for public goods We show that monotone migrations require sufficiently strong preferences for public goods, and can only be sustained from the small to the large countries. We identify the threshold value of the public goods’ intensity of preferences guaranteeing the survival of the small country. For weaker preference intensities, oscillating migrations may arise, but they ïŹnally converge to situation where both countries are of equal size.migration, public goods, income tax.

    Public goods’ attractiveness and migrations

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    The aim of this paper is to develop a dynamic model of migrations, in which migration is driven by size asymmetries between countries and by the relative preferences of consumers between private consumption and consumption of public goods. The dynamic trajectories heavily depend on the degree of attractiveness for public goods. We show that monotone migrations require sufficiently strong preferences for public goods, and can only be sustained from the small of the large countries. We identify the threshold value of the public goods’ intensity of preferences guaranteeing the survival of the small country. For weaker preference intensities, oscillating migrations may rise, but they finally converge to situation where both countries are of equal sizeMigration; public goods; income tax

    The long run survival of small nations. A dynamic view

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    Pieretti P, Zanaj S, Zou B. The long run survival of small nations. A dynamic view. Working Papers. Institute of Mathematical Economics. Vol 437. Bielefeld: UniversitÀt Bielefeld; 2010.In this paper, we analyze the dynamics of a very small economy which tries to attract foreign investments. For that purpose, we model the intertemporal behavior of a small jurisdiction using taxes and attractive public infrastructures as policy instruments, for given policy choices of the rest of the world. Applying Pontryagin's maximum principle, we then characterize the potential steady states which are attainable. These results give some insights into the policy behavior that may guarantee the long run survival of very small economies

    MESURE DES EXTERNALITÉS TECHNOLOGIQUES ET PÉCUNIAIRES DANS UN CLUSTER FINANCIER

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    Cet article se propose d’estimer les Ă©conomies d’agglomĂ©ration des activitĂ©s de services supĂ©rieurs au sein du cluster financier luxembourgeois. Le modĂšle empirique utilisĂ©, inspirĂ© de celui de Midelfart-Knarvik et Steen (1999), fait notamment apparaĂźtre l’existence de diffĂ©rents effets externes pĂ©cuniaires et technologiques entre le secteur financier et les branches de services aux entreprises et informatiques. Abstract: In this paper, we estimate agglomeration effects which arise in the Luxembourg banking and services industries. The empirical model we use is inspired from Midelfart-Knarvik and Steen (1999). Empirical evidence of technological and pecuniary externalities is found between the financial industry and the computer and business services.CLUSTER FINANCIER, LUXEMBOURG, EXTERNALITÉS TECHNOLOGIQUES, EXTERNALITÉS PÉCUNIAIRES

    Immigration, occupational choice and public employment

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    Marchiori L, Pieretti P, Zou B. Immigration, occupational choice and public employment. Center for Mathematical Economics Working Papers. Vol 516. Bielefeld: Center for Mathematical Economics; 2014.This paper investigates the theoretical effects of immigration in an occupational choice model with three sectors: a low-skilled, a high-skilled and a public sector. The originality of our approach is to consider (i) intersectoral mobility of labor and (ii) public employment. We highlight the fact that including a public sector is crucial, since omitting it implies that low-skilled immigration unambiguously reduces wages and welfare of all workers. However, when public employment is considered, we demonstrate that immigration increases wages in the high-skilled and the public sectors, provided that the immigrant workforce is not too large and the access to public jobs is not too easy. The average wage of natives may also increase accordingly. Moreover, immigration may improve workers’ welfare in each sector. Finally, the mechanism underlying these results does not require complementarity between natives and immigrants
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