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Gains from Trade versus Gains from Migration: What Makes Them So Different?

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  • Peter J. Hammond
  • Jaime Sempere

Abstract

Latest revision: September 1998. Previous versions appeared under the titles "On Proving Gains from Trade and Migration," and "On the Contrast between Policies toward Trade and Migration." Would unrestricted "economic" migration enhance the potential gains from free trade? First, with free migration feasible sets become non-convex. Under standard assumptions, however, Walrasian equilibrium exists for a continuum of individuals with dispersed ability to afford each of a finite set of possible migration plans. Then familiar conditions ensuring potential Pareto gains from trade also ensure similar supplementary gains from free migration. Second, unlike the standard literature on fiscal externalities, here appropriate policies for providing national public goods, especially those subject to congestion, allow potential Pareto improvements from population exchanges that are regulated only through appropriate residence charges.

Suggested Citation

  • Peter J. Hammond & Jaime Sempere, "undated". "Gains from Trade versus Gains from Migration: What Makes Them So Different?," Working Papers 98012, Stanford University, Department of Economics.
    • Handle: RePEc:wop:stanec:98012
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    File URL: http://www-econ.stanford.edu/faculty/workp/swp98012.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gabriel Felbermayr & Wilhelm Kohler, 2014. "Can International Migration Ever Be Made a Pareto Improvement?," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 11, pages 373-393, World Scientific Publishing Co. Pte. Ltd..
    2. Jaume Sempere, 2022. "On potential Pareto gains from free trade areas formation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(6), pages 1502-1518, December.
    3. Mongin, Philippe, 2019. "Interview of Peter J. Hammond," The Warwick Economics Research Paper Series (TWERPS) 1190, University of Warwick, Department of Economics.
    4. Bougheas, Spiros & Nelson, Doug, 2013. "On the political economy of high skilled migration and international trade," European Economic Review, Elsevier, vol. 63(C), pages 206-224.
    5. Christopher P. Chambers & Takashi Hayashi, 2020. "Can everyone benefit from economic integration?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(3), pages 821-833, June.
    6. Peter Hammond & Jaume Sempere, 2009. "Migration with local public goods and the gains from changing places," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(3), pages 359-377, December.
    7. Vladimir Gligorov, 2009. "Mobility and Transition in Integrating Europe," Human Development Research Papers (2009 to present) HDRP-2009-15, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.
    8. Gersbach, Hans & Haller, Hans, 2022. "Gainers and losers from market integration," Mathematical Social Sciences, Elsevier, vol. 116(C), pages 32-39.
    9. Brian Blankespoor & M Shahe Emran & Forhad Shilpi & Lu Xu, 2022. "Bridge to bigpush or backwash? Market integration, reallocation and productivity effects of Jamuna Bridge in Bangladesh [Agricultural technology choice and transport]," Journal of Economic Geography, Oxford University Press, vol. 22(4), pages 853-871.
    10. Wolfgang Pollan, 2000. "Die volkswirtschaftlichen Auswirkungen der Zuwanderung von Arbeitskräften. Ein Literaturüberblick," WIFO Monatsberichte (monthly reports), WIFO, vol. 73(2), pages 95-112, February.
    11. Noel Gaston & Douglas R. Nelson, 2013. "Bridging Trade Theory And Labour Econometrics: The Effects Of International Migration," Journal of Economic Surveys, Wiley Blackwell, vol. 27(1), pages 98-139, February.

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