Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Migration and the Option Value of Waiting
Humboldt-Universit├Ąt zu Berlin.
1995 (English)Report (Other academic)
Abstract [en]

Migration is an investment: it involves fixed, unrecoverable costs and uncertain future returns. If migration can be postponed, the option value of doing so may have positive value. Migration may not occur for a range of individuals who would otherwise migrate on a net present valur basis. This paper models the migration decision using ideas developed by Pindyck (1991) and Dixit (1992). Th option value of waiting is related to the interest rate, fixed costs, and especially uncertainty governing the evolution of income at home and abroad. The "bad news principle" predicts that only unfavorable states of the world will affect the value of the migration option. In a rational intertemporal equilibrium of two regional labor markets, low migration rates may coexist with large or even increasing current wage differentials.

Place, publisher, year, edition, pages
Stockholm: IIES , 1995. , 26 p.
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 597
Keyword [en]
migration, option value of waiting, mobility
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41928OAI: oai:DiVA.org:su-41928DiVA: diva2:343081
Note
Published in connection with a visit at the IIES.Available from: 2010-08-12 Created: 2010-08-12 Last updated: 2010-08-12

Open Access in DiVA

fulltext(3564 kB)217 downloads
File information
File name FULLTEXT01.pdfFile size 3564 kBChecksum SHA-512
1f26a149c6d54dbbaad7b91262c593d73ad7bd64336d415007668f8dd1c4472d8ac542bbe7b139d603602be47f4e81bfacdeeb27b3b18d28f55a582eb2ea1858
Type fulltextMimetype application/pdf

Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 217 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 59 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf