The ongoing process of increased integration of national economies, culminating in the single European market of 1992, still leaves as virtually separate the national fiscal systems. In this book international economists Jacob Frenkel and Assaf Razin join forces with public finance economist...

Economists tend to favor the free �ow of capital across national borders, because it allows capital to seek out the highest rate of return. Unrestricted capital �ows may also o¤er several advantages, as noted by Feldstein (2000). First, international �ows reduce the risk faced by owners...

Migrants being relatively low earners are net beneficiaries of the welfare state. However this paper uses a dynamic model to show that because of migrants` positive influence on the pension system which is an important pillar of any welfare state migration could be beneficial to all income (high...

We develop a simple information-based model of FDI flows. On the one hand, the abundance of intangible capital in specialized industries in the source countries, which presumably generates expertise in screening investment projects in the host countries, enhances FDI flows. On the other hand,...

Like any trade activity, migration tends to generate gains to all parties involved - the migrants as well as the native-born population. With a mal-functioning labour market, however, migration will exacerbate the imperfections in the market. Consequently, it may lead to losses to the...