On December 7th, Andre Coelho from ISEG presents a study on immigration and tax policies in the wake of the COVID-19 pandemic.
Abstract:
In the aftermath of the COVID-19 pandemics European governments will be left with an unprecedented debt burden. Soon, Europe will assist to a rebound in migratory pressure to pre-pandemic levels while the recent demographic changes resume. In a context of population aging, migratory pressure and fiscal imbalances, I explore whether and under which conditions immigration policies may complement fiscal policy in the European Union to revert some of the fiscal consequences entailed by population aging. For that purpose, I construct a general equilibrium overlapping generations model featuring heterogeneous agents, demographic dynamics, idiosyncratic risk, a characterization of fiscal policy and a PAYG pension system, as well as exogenous (potentially selective) immigration policies. The model is calibrated to match observable empirical moments across a set of European countries and shows how feasible immigration policies differ amongst these countries in terms of magnitude and discretionary. Given the degree of cross-country heterogeneity prevailing among European countries, I anticipate meaningful differences in the impacts and incentives to articulate fiscal with immigration policies. These differences may however provide a useful quantitative starting point for policy makers in reform the EU relocation and refugee asylum schemes.
The research seminars will take place from September 21 to December 14, on Wednesdays, from 1:00 PM to 2:00 PM, at the Novo Banco Amphitheater (Quelhas Building, 4th floor).
Faculty from ISEG and other national and international schools will participate in the sessions, when they will address topics related with Economics, Management, Finance, Social Sciences, and Mathematics.
Free admission.