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Internal migration and public policy

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  • Giuranno, Michele G.
  • Rongili, Biswas

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. & Rongili, Biswas, 2012. "Internal migration and public policy," MPRA Paper 94217, University Library of Munich, Germany, revised 23 May 2019.
    • Handle: RePEc:pra:mprapa:94217
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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

    Demographic Changes; Government Spending; Inequality; Redistribution; Bargaining; Political Economy Theory;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H00 - Public Economics - - General - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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