| Abstract: | The author analyzes "the various arguments that can be advanced for imposing fees on immigrants to optimize...resident gains.... This article discusses cost recovery and emphasizes the costs of multiculturalism as a possible basis for fees. It then analyzes the effects of inelastic immigrant supplies in providing an optimal tariff motivation for monopsonistically restricting labor flows and deals with the second-best problem of devising an optimal fee policy to accompany a possibly suboptimal immigration quota. Next, attention turns to the role of priceable externalities. Externalities which are expensive to price because of transactions costs are analyzed. Finally, along with summarization of major conclusions, the author considers if, even in the economic interests of existing residents, entry rights should be sold." |
