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Related Experiment Videos

Migration with fiscal externalities.

Z Hercowitz, D Pines

    Journal of Public Economics
    |November 1, 1991
    PubMed
    Summary
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    Decentralized regional government decisions can lead to optimal population distribution with costless mobility. However, costly mobility necessitates centralized transfers for efficient population allocation due to fiscal externalities.

    Area of Science:

    • Economics
    • Public Policy
    • Urban Planning

    Background:

    • Population distribution is influenced by regional economic factors and government policies.
    • Fiscal externalities arise when migration decisions impact public finances across regions.
    • Decentralized decision-making is often proposed for regional governance.

    Purpose of the Study:

    • To analyze population distribution patterns under fiscal externalities.
    • To determine if decentralized regional government decisions lead to optimal population allocation.
    • To assess the necessity of centralized intervention in managing population distribution.

    Main Methods:

    • Economic modeling of population dynamics.
    • Analysis of fiscal externalities in interregional migration.
    Keywords:
    Demographic FactorsEconomic FactorsGeographic FactorsMigration PolicyMigration--costModels, TheoreticalPolicyPopulationPopulation DynamicsPopulation PolicyResearch MethodologySocial PolicySpatial DistributionWorld

    Related Experiment Videos

  • Comparative analysis of decentralized versus centralized policy interventions.

    • Main Results:

    • With costless mobility, fiscal externalities are fully internalized through voluntary interregional transfers.
    • With costly mobility, decentralized decisions do not achieve optimal population distribution.
    • Centrally coordinated transfers are essential for optimal allocation when mobility is costly.

    Conclusions:

    • Decentralized regional governance is insufficient for optimal population distribution when migration involves costly mobility and fiscal externalities.
    • Centralized intervention and transfers remain indispensable for achieving social optimum in population allocation.
    • Policy recommendations emphasize the need for coordinated fiscal policies to manage interregional migration effectively.