Fiscal Revenues and Commitment in Immigration Amnesties

A Simple Model of Immigration Amnesties∗

We study the outcome of an immigration amnesty for a government that faces a trade-off between minimizing the number of unwanted immigrants and expanding the tax base. Since the government is not credible when announcing a generalized amnesty, both the fiscal benefit and the stock of illegal immigrants are sub-optimal. In addition, we argue that amnesties can occur only at irregular intervals a...

The Why, When and How of Immigration Amnesties

Immigration, Integration and Fiscal Sustainability

Economic theory points out that immigration of even low-skilled immigrants may improve public finances in Western welfare states, and it is some times suggested that fiscal sustainability problems in Western countries caused by ageing populations could be solved by increasing immigration. We examine consequences of various immigration scenarios using the large-scale computable general equilibri...

Ageing, Immigration, and Fiscal Sustainability

This paper evaluates the sustainability of Danish fiscal policy for a given demographic development. The total population forecast is the sum of individual forecasts for 5 different origin groups including immigrants and descendents of immigrants. Results are that the demographic dependency ratio increases and has a local maximum around 2040. However, the level of the dependency ratio remains p...

Optimal Fiscal Policy With Oil Revenues