A guest-worker program can be a very flexible and convenient way of meeting labor shortages in a host country, assuming that the migrants obey the rules. This paper investigates the conditions under which guest workers have sufficient incentives for voluntary return to their country of origin...

A guest-worker program can be a very flexible and convenient way of meeting labor shortages in a host country, assuming that the migrants obey the rules. This paper investigates the conditions under which guest workers have sufficient incentives for voluntary return to their country of origin...

A guest-worker program can be a very flexible and convenient way of meeting labor shortages in a host country, assuming that the migrants obey the rules. This paper investigates the conditions under which guest workers have sufficient incentives for voluntary return to their country of origin...

This paper examines the welfare implications of foreign aid within the framework of a two-period, two-country model of international trade. It is up to the donor country to decide what fraction of any given aid package is to be made available for the recipient's immediate, period-one...

This paper develops a model of optimizing behavior of asylum seekers whose objective is to reach an advanced country. Their personal characteristics and the challenges anticipated along the way determine whether they try to reach the ultimate destination with the aid of human smugglers or by...

Climate physics predicts that the intensity of natural disasters will increase in the future due to climate change. We present a stochastic model of a growing economy where natural disasters are multiple and random, with damages driven by the economy's polluting activity. We provide a...

Climate economics has been criticized for ignoring uncertainty, catastrophic changes, and tipping points (Stern 2016). The present paper addresses these issues. We consider multiple climate shocks which are recurring, random, uninsurable, and potentially large. The associated damages and the...

Climate physics predicts that the intensity of natural disasters will increase in the future due to climate change. One of the biggest challenges for economic modeling is the inherent uncertainty of climate events, which crucially affects consumption, investment, and abatement decisions. We...

The paper derives general rules for equitable burden sharing in international climate policy. The focus is on a new social climate contract between developed and less developed countries (LDCs) which preserves competitiveness of the former and the ”right to development” of the latter. We...

Countries with strict immigration policies often resort to deportation measures to reduce their stocks of illegal immigrants. Many of their undocumented foreign workers, however, are not deported but rather choose to return home voluntarily. This paper studies the optimizing behavior of...