This paper explores the fiscal implications to the US, and argues that immigration policy should be viewed as a vital part of fiscal policy. In particular, a case is made that skills and age at time of arrival are of great importance for the cost-benefit calculation of new immigrants.

O'Connell and Zeldes (1993) have shown that the dynamic inefficiency result of a standard gift model is reversed if parents can undersave strategically. I impose an explicit non-negativity constraint on gifts, which - for all the numerical examples suggested by O'Connell and Zeldes - alters this...

This paper explores the fiscal implications of immigration to the US and argues that immigration policy should be viewed as a vital part of fiscal policy. In particular a case is made that skills and age at the time of arrival are of great importance for the cost-benefit calculation of new...