Migration has important implications for the financial soundness of the pe nsion system, which is an important pillar of the welfare state. While it is common sense to expect that young migrants, even if low-skilled, can help society pay the benefits to the currently elderly, it may nevertheless...

The extent of taxation and redistribution policy is generally determined as a political-economy equilibrium by a balance between those who gain from higher taxes/transfers and those who lose. In a stylized model of migration and human capital formation, we show -- somewhat against the conventi...

In this paper, we have emphasized information problems which lead to home bias and insufficient amounts of capital inflows.

Foreign direct investment (FDI) is observed to be a predominant form of capital flows to low and middle income countries with insufficiently developed capital markets. This paper analyzes the problem of channelling domestic savings into productive investment in the presence of asymmetric...

Foreign direct investment (FDI) is observed to be a predominant form of capital flows to low and middle income countries with insufficiently developed capital markets. This paper analyzes the problem of channelling domestic savings into productive investment in the presence of asymmetric...

This paper develops an overlapping generations model of Social Security and human capital formation in which - somewhat against the conventional wisdom - an increase in the dependency ratio can lead to a reduced tax burden or less generous social transfers. A higher dependency ratio resulting...