multi issue allocation situations abstract this paper introduces a new class of transferable utility games called multi issue allocation games these games arise from various allocation situations and are based on the concepts underlying the bankruptcy model as introduced by o neill math social sci 2 1982 345 in this model a perfectly divisible good estate has to be divided amongst a given set of agents each of whom has some claim on the estate contrary to the standard bankruptcy model the current model deals with situations in which the agents claims are multi dimensional where the dimensions correspond to various issues it is shown that the class of multi issue allocation games coincides with the class of non negative exact games the run to the bank rule is introduced as a solution for multi issue allocation situations and turns out to be shapley value of the corresponding game finally this run to the bank rule is characterised by means of a consistency property in the spirit of o neill

the inflation output trade off with downward wage rigidities the macroeconomic implications of downward nominal wage rigidi ties are analyzed via a dynamic stochastic general equilibrium model featuring aggregate and idiosyncratic shocks a closed form solution for a long run phillips curve relates average output gap to average wage inflation it is virtually vertical at high inflation and flattens at low inflation macroeconomic volatility shifts the curve outwards and reduces output the results imply that stabilization policies play an important role and that optimal inflation may be positive and dif fer across countries with different macroeconomic volatility results are robust to relaxing the wage constraint for example when large idiosyncratic shocks arise jel e23 e24 e31 e63

non manipulable division rules in claim problems and generalizations abstract when resources are divided among agents the characteristics of the agents are taken into consideration a simple example is the bankruptcy problem where the liquidation value of a bankrupt firm is divided among the creditors based on their claims we characterize division rules under which no group of agents can increase the total amount they receive by transferring their characteristics within the group by allowing agents characteristics to be multi dimensional and choosing the meaning of variables appropriately our model can subsume a number of existing and new allocation problems such as cost sharing social choice with transferable utilities income redistribution bankruptcy with multiple types of assets probability updating and probability aggregation a number of existing and new results in specific problems are obtained as corollaries

decentralization and intra country transfers in the great recession the case of the european union empirical evidence is found supporting the assignment of the redistribution function to the central government viewing the great recession or recessions in general as a shock it is found that a

the local structure of the welfare state uneven effects of social spending on poverty within countries research has shown that there is a strong negative relationship between social spending and poverty levels among urban inequality researchers it is often assumed that compared with the usa the welfare state has mitigated social differences explaining lower levels of urban inequality in most european countries however research on the role of the welfare state is often conducted on the national level and is thus unable to draw conclusions on the effects of social spending and redistribution on a lower level failing to take the within country variation into account this study connects welfare state research to urban inequality research by investigating the effects of social spending on poverty in urban and non urban areas we have conducted a cross national multilevel logistic regression analysis using eurostat and european social survey data of 2008 our findings suggest that the effects of social spending are unequally distributed within countries

balanced contributions for tu games with awards and applications abstract calleja et al calleja p borm p hendrickx r 2005 multi issue allocation situations european journal of operational research 164 730 747 introduced multi issue allocation situations with awards in this paper we extend the classical model of cooperative games with transferable utility to the cooperative games with transferable utility and awards we define a run to the bank rule for cooperative games with transferable utility and awards and characterise it in terms of a property of balanced contributions we apply our main result to bankruptcy problems and multi issue allocation situations with awards

the medicaid notch labor supply and welfare participation evidence from eligibility expansions i assess the impact of losing public health insurance on labor market decisions of women by examining a series of medicaid eligibility expansions targeted toward young children these targeted expansions severed the historical tie between afdc and medicaid eligibility the reforms allowed a mother s earnings to increase without losing public health insurance for her young children increasing the income limit for medicaid resulted in a decrease in afdc participation and an increase in labor force participation among these women the effects were large for ever married women and negligible for never married women

time consistent immigration policy under economic and cultural externalities summarydiscussions of immigration policy are typically framed in the context of their economic effects in receiving countries notably labour market and fiscal effects in this paper we characterize immigration policy in a richer model where migrants are also a source of cultural externalities stemming from either preferences or the functioning of formal and informal institutions in receiving countries while in terms of pure economic effects immigrants do not generally have any more incentives than low skilled natives to allow for more immigration in the future this is not the case when accounting for cultural externalities therefore insofar as past immigrants have a voice in affecting future policies a time consistent immigration policy entails back loading as natives attempt at limiting voice of immigrants in the future the economic effects of immigration flows as well as the cultural externality they introduce furthermore natives exploit any pre commitment device to limit immigration flows e g building walls limiting immigrants political rights or accumulating fiscal surpluses

is the minimum wage a pull factor for immigrants in this article the author studies the effects of the minimum wage on immigration he develops an analytical framework in which immigration is a function of the expected wage in the region of destination in the analysis the author exploits the state variation in expected wages stemming from the changes in the u s federal minimum wage during 1996 1997 and 2007 2009 the author addresses endogeneity between immigration and the expected wage using an instrumental variable approach his results provide consistent evidence that the policy induced a sizeable flow of low skilled immigrants to the united states in both periods this pull is attributable to the minimum wage increasing immigrants wages without harming their potential employment outcomes the author corroborates these findings by showing that the policy did not have any impact on the flow of high skilled immigrants the effect on low skilled immigration is also found when the interstate mobility of immigrants is considered finally changes in the minimum wage only attracted legal immigrants while undocumented immigrants were not affected

immigrant participation in the welfare system this paper presents a systematic analysis of immigrant participation in the us welfare system using the 1970 and 1980 us censuses in contrast to the previous studies the researchers focused on changes in welfare use across immigrant cohorts over time for a single immigrant cohort as it assimilates to the us furthermore it develops a theoretical model of the migration decision that explicitly incorporates the income insurance aspect of the us welfare system the analysis revealed that recent immigrant cohorts use the welfare system more intensively than earlier immigrant waves also the immigrant welfare participation was greater the longer an immigrant household had resided in the us and those characteristics of the immigrants country of origin were important determinants of welfare participation in addition the theoretical model of the migration decision which explicitly incorporated the presence of a welfare system in the destination country and this model could account for some of the ways in which source country characteristics were found to affect immigrant welfare participation

a pie allocation among sharing groups this paper deals with a pie allocation problem to users who are divided intosharing groups that are not necessarily disjoint the pie is allocated among the groups rather than the users the portion of a sharing group is a public good for its members that is all of them can enjoy it a non cooperative game for allocating the pie and a special equilibrium outcome strongly disappointment free allocation are defined we prove the existence of a unique such allocation and show that it coincides with the nash solution of the related bargaining problem journal of economic literatureclassification numbers c70 c71 c72 and c78

the impact of immigration on the size of government empirical evidence from danish municipalities several studies have reported a negative relationship between ethnic heterogeneity and the size of the public sector one problem with this literature is that ethnic composition is hardly exogenous

priority rules and other asymmetric rationing methods in a rationing problem each agent demands a quantity of a certain commodity and the available resources fall short of total demand a rationing method solves this problem at every level of resources and individual demands we impose three axioms consistency with respect to variations of the set of agents upper composition and lower composition with respect to variations of the available resources in the model where the commodity comes in indivisible units the three axioms characterize the family of priority rules where individual demands are met lexicographically according to an exogeneous ordering of the agents in the more familiar model where the commodity is divisible these three axioms plus scale invariance independence of the measurement unit characterize a rich family of methods it contains exactly three symmetric methods giving equal shares to equal demands these are the familiar proportional uniform gains and uniform losses methods the asymmetric methods in the family partition the agents into priority classes within each class they use either the proportional method or a weighted version of the uniform gains or uniform losses methods

measuring the effect of subsidized training programs on movements in and out of employment despite over two decades of u s experience in operating large scale subsidized training programs for low income and unemployed workers the effects of these programs are still highly controversial the controversy arises from the difficulty of specifying the model of participant outcomes in the absence of training that is necessary in any nonexperimental program evaluation in this paper we suggest that some of these difficulties may be overcome by focusing on a very simple measure of outcomes namely the probability of employment we present a variety of estimates of the effect of training on the probability of employment for the 1976 cohort of adult male participants in the comprehensive employment and training act ceta program our methods range from a simple comparison of pre and post training employment probabilities between trainees and nonparticipants to a fully specified first order markov model of employment probabilities with individual heterogeneity there is consistent evidence across methods that ceta participation increased the probability of employment in the three years after training by from 2 to 5 percentage points classroom training programs appear to have had significantly larger effects than on the job programs although the estimated effects of both kinds of programs are positive we also find that movements in and out of employment for trainees and nonparticipants are reasonably well described by a first order process conditional on individual heterogeneity in the context of this model ceta participation appears to have increased both the probability of moving into employment and the probability of continuing employment

migration and income redistribution responsibilities this study examines whether afdc benefits determine or discourage state to state migration flows in the united states a pooled cross section time series model is developed to estimate afdc benefits in a state and recipients and whether benefits in one state affect benefits in other states a second model using data from the 1980 census and the panel study of income dynamics estimates migration of afdc recipients and the level of benefits in in migration and out migration states both models indicate that small but statistically significant amounts of migration occur which may be quite important but only in the long run movers although small in number are much more likely to move to a state with higher benefits states perceive this migration as important indicating that states should have less control and the federal government more control over income redistribution

the effect of welfare and wage levels on the location decisions of female headed households abstract this paper develops and estimates a model designed to calculate the impact of welfare benefit levels wages and tax rates on the location choices of female headed households the empirical model assumes that women simultaneously choose both where they will live and whether or not they will participate in the welfare system based on their expected income and expected hours of work for each location participation possibility these income and hours expectations depend in turn on the welfare benefits wage and tax rates facing each household in each location it is found that both regional welfare levels and wage rates have a significant effect on the location decisions of this population the probability of a typical female headed household with little outside income leaving an area with low welfare payments and low wages can be as much as 12 points higher over a 4 year period than the probability of leaving a high welfare high wage area

labor market effects of language enclaves hispanic men in the united states in a model of a labor market with enclaves of spanish speakers a large enclave provides better jobs for persons lacking skills in english consequently the larger enclave lowers earnings returns to english returns to english also vary with the distribution of english skills among spanish speaking workers returns to english rise if the distribution becomes skewed toward less proficiency in english and fall if it becomes skewed toward more proficiency in english the model has broad implications for the consequences of enclaves the model is tested with an application to hispanic men in the united states using the 1980 census of population empirical results are consistent with theoretical predictions enclaves do reduce the earnings losses associated with limited english skills for hispanic men and increasing the fraction of hispanic men who speak english only does lower the returns to english

welfare magnet hypothesis fiscal burden and immigration skill selectivity in this paper we investigate the effect of welfare state generosity on the difference between skilled and unskilled migration rates and the role of mobility restriction in shaping this effect we utilize the free labor movement within the european union plus norway and switzerland eur and the restricted movement from outside the eur in order to compare the free migration regime to the restricted migration regime we find strong support for the magnet hypothesis under the free migration regime and the fiscal burden hypothesis under the restricted migration regime even after controlling for differences in educational quality and returns to skills in source and host countries

does immigration impact institutions the economics literature generally finds a positive but small gain in income to native born populations from immigrants and potentially large gains in world incomes but immigrants can also impact a recipient nation s institutions a growing empirical literature supports the importance of strong private property rights a rule of law and an environment of economic freedom for promoting long run prosperity but little is known about how immigration impacts these institutions this paper empirically examines how immigration impacts a nation s policies and institutions we find no evidence of negative and some evidence of positive impacts in institutional quality as a result of immigration

stable allocations of risk abstract the measurement and the allocation of risk are fundamental problems of portfolio management coherent measures of risk provide an axiomatic approach to the former problem in an environment given by a coherent measure of risk and the various portfolios realization vectors risk allocation games aim at solving the second problem how to distribute the diversification benefits of the various portfolios understanding these cooperative games helps us to find stable efficient and fair allocations of risk we show that the class of risk allocation and totally balanced games coincide hence a stable allocation of risk is always possible when the aggregate portfolio is riskless the class of risk allocation games coincides with the class of exact games as in exact games any subcoalition may be subject to marginalization even in core allocations our result further emphasizes the responsibility involved in allocating risk

game theoretic analysis of a bankruptcy problem from the talmud abstract for three different bankruptcy problems the 2000 year old babylonian talmud prescribes solutions that equal precisely the nucleoli of the corresponding coalitional games a rationale for these solutions that is independent of game theory is given in terms of the talmudic principle of equal division of the contested amount this rationale leads to a unique solution for all bankruptcy problems which always coincides with the nucleolus two other rationales for the same rule are suggested in terms of other talmudic principles needless to say the rule in question is not proportional division

immigration and the welfare state immigrant participation in means tested entitlement programs this paper documents the extent to which immigrants in the united states over the past 30 years participate in the many programs that make up the welfare state the immigrant native difference in the probability of receiving cash benefits is small but the gap widens once other programs are included in the analysis 21 percent of immigrant households receive some type of assistance as compared with only 14 percent of native households the types of benefits received by earlier immigrants influence the types of benefits received by newly arrived immigrants hence there might be ethnic networks that transmit information about the availability of particular benefits to new immigrants excerpt

does the chinese diaspora speed up growth in host countries summary we compiled a new enhanced data set on the population share of overseas chinese covering 147 countries over the period 1970 2010 linking the migration and economic growth literature this article attempts to estimate the impact of the chinese diaspora on economic growth in host countries regression results from both barro type and dynamic panel data models suggest that a country s initial relative endowment with overseas chinese is positively related to subsequent growth results are robust to a number of sensitivity tests the effect is transmitted via increased trade openness enhanced investment and general tfp effects

spillover effects of stricter immigration policies abstract we provide evidence for the existence of spillover effects of national immigration policies by estimating the effect of stricter family reunification rules in denmark on migration behavior we reach three main conclusions using danish register data we first show that stricter rules for reunification led to a clear and significant increase in emigration of danish citizens with immigrant background most of the emigrants left denmark for sweden a neighboring country in which reunification was possible next using swedish register data we find that affected individuals emigrating to sweden actually came for family formation purposes finally we demonstrate that not all individuals that came to sweden to reunite with a partner stayed in the country of those leaving return migration to denmark was most common our results indicate that potential spillover effects from national migration policies should be taken into account when forming migration policy

distributive justice in taxation abstract a classical criterion for apportioning taxes is that all should sacrifice equally in loss of utility suppose that a method of apportioning taxes is continuous and has the following four properties i the way that taxpayers split a given tax total depends only on their own taxable incomes ii an increase in the tax total implies that everyone pays more iii every incremental increase in tax is apportioned according to taxpayers current after tax incomes iv the ordering of taxpayers by pre tax income and after tax income is the same then there exists a utility function relative to which all sacrifice equally

population monotonic allocation schemes for cooperative games with transferable utility abstract an allocation scheme for a cooperative game specifies how to allocate the worth of every coalition it is population monotonic if each player s payoff increases as the coalition to which he belongs grows larger we show that essentially a game has a population monotonic allocation scheme pmas if and only if it is a positive linear combination of monotonic simple games with veto control a dual characterization is also provided sufficient conditions for the existence of a pmas include convexity and increasing average marginal contributions if the game is convex its extended shapley value is a pmas classification number 026

self selection and the earnings of immigrants this paper analyzes the way in which the earnings of the immigrant population may be expected to differ from the earnings of the native population because of the endogeneity of the decision to migrate the empirical study shows that differences in the u s earnings of immigrants with the same measured skills but from different home countries are attributable to variations in political and economic conditions in the countries of origin at the time of migration excerpt

familiarity breeds investment diaspora networks and international investment what explains cross national patterns of international portfolio and foreign direct investment fdi while existing explanations focus on the credibility of a policy maker s commitment we emphasize the role of diaspora networks we hypothesize that diaspora networks connections between migrants residing in investing countries and their home country influence global investment by reducing transaction and information costs this hypothesis is tested using dyadic cross sectional data for both portfolio and fdi the findings indicate that even after controlling for a multitude of factors disapora networks have both a substantively significant effect and a statistically significant effect on cross border investment

the short and long run determinants of less educated immigrant flows into u s states we use a gravity model of migration and alternative estimation strategies to analyze how income differentials affect the flow of immigrants into u s states using annual data from the american community survey we add to existing literature by decomposing income differentials into short and long term components and by focusing on newly arrived less educated immigrants between 2000 and 2009 our sample is unique in that the vast majority of our observations take zero values models that include observations with zero flow values find that recent male immigrants respond to differences in short term gdp fluctuations between origin countries and u s states and perhaps to long term trend gdp differences as well more specifically gdp fluctuations pull less educated male immigrants into certain u s states whereas gdp trends push less educated male immigrants out of their countries of origin effects for less educated women are less robust as gdp coefficients tend to be much smaller than for men

when do women use aid to families with dependent children and food stamps the dynamics of eligibility versus participation this paper investigates dynamic patterns in the relationship between eligibility and participation in the aid to families with dependent children afdc and food stamp programs using monthly longitudinal data from the survey of income and program participation the results indicate that there are many relatively short eligibility spells that do not result in program participation and end with increases in income participation is most likely to occur among women with lower current and future earnings opportunities and is affected by locational and policy parameters those who elect to participate in these programs tend to start receiving benefits almost immediately upon becoming eligible a substantial number of women exit these programs before their eligibility ends among at least some of these women it is likely that unreported changes in income are occurring in 1989 if all eligible single parent families had participated in afdc and food stamps benefit payments in these programs would have been 13 5 billion higher

the use of transfer payments by immigrants this paper uses data from the 1976 survey of income and education to compare the receipt of transfers by families headed by male and female immigrants and those headed by native born americans the average level of transfers is found to be considerably higher among families headed by immigrants but this is almost entirely the result of the higher average age of family members among the immigrant group a reflection of the large inflows of immigrants into the u s during the pre 1924 period when age and other factors are held constant immigrant families are found to be considerably less likely to rely on welfare than native families and their receipts from social insurance programs are found to be only slightly higher

the effect of immigration on public finances the impact of immigration on the public finances is an important influence on public opinion this study aims to provide a thorough conceptual survey pointing out the complexities of a full understanding and the relevance of indirect effects and covering both static perspectives and longer run dynamic issues it considers simple accounting approaches which are relatively neglectful of behavioural responses but also tries to bring out the complexities in the nature of the relationship between immigration and the public exchequer that come with more sophisticated modelling of its economic effects

self selection and internal migration in the united states abstract within the conceptual framework of the roy model this paper provides an empirical analysis of internal migration flows using data from the national longitudinal survey of youth the theoretical approach highlights regional differences in the returns to skills regions that pay higher returns to skills attract more skilled workers than regions that pay lower returns our empirical results suggest that interstate differences in the returns to skills are a major determinant of both the size and skill composition of internal migration flows persons whose skills are most mismatched with the reward structure offered by their current state of residence are the persons most likely to leave that state and these persons tend to relocate in states which offer higher rewards for their particular skills

immigrants and welfare programmes exploring the interactions between immigrant characteristics immigrant welfare dependence and welfare policy the primary purpose of this paper is to provide a review of the papers within the economics literature that have examined the questions of immigrant welfare use and the responsiveness of immigrants to the incentives created by welfare systems while our focus is largely on papers looking at the european case we also draw on studies from the united states in particular on issues where the european literature is thin one set of papers asks whether immigrants who are more likely to use welfare are attracted to more generous welfare states the results from these papers are not clear cut another set of papers asks if immigrants use welfare more intensively than natives and if they assimilate out of or into welfare participation in most cases the unadjusted data show higher use of welfare by immigrants although for some countries for example germany this can be explained by differences in immigrants characteristics yet another set of papers finds that the rate of welfare use by existing migrants can influence the welfare use of newly arrived co nationals we illustrate some of these issues by looking at immigrant welfare use in ireland and the uk immigrants in the uk appear to use welfare more intensively than natives but the opposite appears to be the case in ireland

defying the law of gravity the political economy of international migration bilateral flows of international migrants exhibit tremendous variance both across destination countries and over time to explain this variance studies of international migration tend to focus on economic determinants such as income differentials or on social conditions such as the presence of coethnics in certain destination countries the authors argue that migration is driven not solely by economic or social determinants rather the political environment across destinations plays a substantively large role in influencing bilateral migration flows they test the importance of the political environment citizenship rights and the prominence of right wing parties using data on migration flows from 178 origin countries into 18 destination countries over the period 1980 2006 they find even after controlling for a variety of economic social policy and international variables that variation in political environments across time and destination plays a key role in observed patterns of international migration

welfare induced migration at state borders new evidence from micro data abstract this paper extends and synthesizes the various approaches used in the recent welfare migration literature to both offer the most comprehensive set of tests to date for welfare migration and to also determine the relative importance of short distance moves in welfare migration flows the current study follows on the finding of mckinnish mckinnish t importing the poor welfare magnetism and cross border welfare migration journal of human resources 2005 40 57 76 of welfare migration effects obtained by comparing welfare participation at state borders to state interiors this identification strategy is extended to micro data from the 1980 and 1990 decennial censuses and combined with the demographic comparisons used elsewhere in the welfare migration literature the signs and patterns of the estimates are consistent with the presence of welfare migration effects and the magnitudes of the estimates are consistent with the importance of short distance moves in welfare induced migration flows but most of the estimates are not statistically significant

immigration and welfare magnets this article investigates if the location choices made by immigrants when they arrive in the united states are influenced by the interstate dispersion in welfare benefits income maximizing behavior implies that foreign born welfare recipients unlike their native born counterparts may be clustered in the states that offer the highest benefits the empirical analysis indicates that immigrant welfare recipients are indeed more heavily clustered in high benefit states than the immigrants who do not receive welfare or than natives as a result the welfare participation rate of immigrants is much more sensitive to changes in welfare benefits than that of natives

welfare reform and the race to the bottom theory and evidence economists have argued that welfare migration leads to a race to the bottom in the choice of welfare benefits although a system of federal matching grants can remedy this problem the recent welfare reform law replaced the existing matching grant structure with block grants a policy change that appears undesirable to judge whether this critique of welfare reform is justified this paper evaluates the evidence in favor of a race to the bottom after explaining the theoretical effects of welfare migration the paper surveys the empirical evidence on the occurrence of such migration concluding that the evidence is mixed the discussion also considers recent empirical tests for strategic interaction which show that benefit levels in nearby states affect a given state s benefit choice the most plausible source of such interaction is a concern about welfare migration which leads policymakers to look at benefits in neighboring states when making their own choices judging that the evidence appears consistent with the existence of a race to the bottom the paper concludes that the demise of matching grants may be undesirable from a policy perspective