We show that labour market institutions, and particularly employment protection are an important determinant of migration flows. Contrary to the popular wisdom, migrants are not attracted by more protective legislation. On the contrary, we show that the employment protection differential acts as...

We analyze the impact and the determinants of a global carbon tax maximizing social welfare in an imperfectly integrated economy. Using a model of trade and location with two countries with different population size, we first show that agglomeration of firms in the larger country raises total...</indice>

This article proposes a perspective on international climate agreements, based on mechanism design. We exhibit a trade-off between incentives and participation. We derive a general condition under which the first-best allocation can be implemented. We then discuss how this condition is affected...