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Internal Migration and Public Policy

Author

Listed:
  • Giuranno Michele G.

    (University of Salento, Dipartimento di Scienze dell’Economia “A. De Viti De Marco”, Lecce, 73100Italy)

  • Biswas Rongili

    (Maulana Azad College, Kolkata, India)

Abstract

This paper studies the relation between internal migration and public spending on public goods. We describe centralized public policy when a central government is comprised of elected representatives from local electoral districts. Internal migration determines the median voter in the districts. The median voters decide the equilibrium policy through bargaining. We find the conditions under which voters’ mobility results in larger or smaller public spending. Furthermore, the distance between the actual size and the efficient size of government spending depends on the way internal migration changes the distribution of income within and between districts.

Suggested Citation

  • Giuranno Michele G. & Biswas Rongili, 2019. "Internal Migration and Public Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(4), pages 1-16, October.
    • Handle: RePEc:bpj:bejeap:v:19:y:2019:i:4:p:16:n:3
    DOI: 10.1515/bejeap-2018-0203
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    Cited by:

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    2. Fabio Fiorillo & Michele G. Giuranno & Agnese Sacchi, 2021. "Asymmetric decentralization: distortions and opportunities," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 625-656, July.

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    More about this item

    Keywords

    public goods; bargaining; political economy;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H0 - Public Economics - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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