We consider a model of international migration with heterogeneity in the skill level of workers which accounts for country-specific educational investment, unemployment expectations and return to the origin country. We prove that migrants invest less than natives in human capital formation...

In this paper, we present a model of tax evasion in the presence of imperfect auditing. We show that there is a clear link between the degree of observability associated with respect to fiscal agency. We also show that the degree of observability is critical in determining the optimal regulation...

We consider a model of international migration with heterogeneity in the skill level of workers which accounts for country-specific educational investment, unemployment expectations and return to the origin country. We prove that migrants invest less than natives in human capital formation...