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Departamento de Economía
Documentos de Trabajo
Dynamics, welfare and migration
Alexandra M. EspinosaIgnacio Díaz-Emparanza
AbstractIn this work we analyze the importance of dynamics in the
determination of the distribution of gains from free trade and
migration. Given a transition dynamic, free trade might worsen a
country relatively to autarchy. Moreover, some individuals might
lose welfare during the transition dynamics. In both case,
individuals find incentives to migrating, given the lost in the
welfare relatively to the autarchy; given the lost in welfare
relatively to another country; or, given the intertemporal lost in
welfare. Then, inequalities in the distribution of the benefits from
free trade matters. Finally, we find out that population size and
specialization in production matters in the determination of the
distribution of gains from free trade and migration.
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