Over the period 19952006 the Spanish economy experienced a rapid increase in employment and output growth, a surge in investment over GDP, a substantial deterioration in the current account balance and an improvement in the finances of the social security system. This paper presents a dynamic...

This paper presents a dynamic general equilibrium model designed to compute the aggregate impact of immigration, accounting for relevant supply and demand effects. We calibrate the model to the Spanish economy, allowing for enough heterogeneity in the demographic characteristics of immigrant and...

To study the political economy of immigration, we develop a common agency model where a trade union and a lobby of entrepreneurs offer contributions to the government to influence its decision on how many immigrants can enter the domestic economy. In the political equilibrium, anticipating that...