Resumen de Public goods .nance and immigration
Iñigo Iturbe-Ormaetxe Cortajarena, José Gabriel Romero
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.
