Economic migration, capital flows, and welfare

This research project funded through the Systems Analysis Forum (SAF) aims to better understand the interaction between labour flows and capital flows in an economy. This work will help to improve the assessment of welfare dynamics and evaluate policies that can lead to higher levels of economic welfare. 

© doom.ko

© doom.ko

Both demographic changes and capital flows affect economic welfare, but in the literature one of these factors is typically immobile. In the context of economic integration, the mobility of the factors of production is equally important, and therefore, there is a clear need to develop a theoretical framework that integrates both dynamic effects.

 In this project, we develop a multilayer network model that captures the dynamics of labour and capital over regions, countries, or larger economic areas. Due to differences in wages and capital interest rates, certain countries attract labor and foreign investment. The proposed analytical model will be integrated in a dynamic optimization framework to study the policies that can lead to optimal welfare. The framework also allows to analyze the sensitivity of labour market and capital market policies with respect to other effects that drive labour and capital dynamics, such as population growth and saving rates.


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Last edited: 26 June 2017

CONTACT DETAILS

Matthias Wildemeersch

IIASA Postdoctoral Research Scholar

Advanced Systems Analysis

Ecosystems Services and Management

Capacity Building and Academic Training

T +43(0) 2236 807 601

CONTACT DETAILS

Elena Rovenskaya

Program Director

Advanced Systems Analysis

T +43(0) 2236 807 608

CONTACT DETAILS

Alexia Fürnkranz-Prskawetz

Research Scholar

World Population

T +43(0) 2236 807 568

CONTACT DETAILS

Jesus Crespo Cuaresma

Research Scholar

World Population

T +43(0) 2236 807 513

Timeframe

June 2016 - June 2017

International Institute for Applied Systems Analysis (IIASA)
Schlossplatz 1, A-2361 Laxenburg, Austria
Phone: (+43 2236) 807 0 Fax:(+43 2236) 71 313