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handle: 10016/45071 , 10016/35137 , 10419/216395
Acquiring information about destinations can be costly for migrants. We model informationfrictions in the rational inattention framework and obtain a closed-form expression fora migration gravity equation that we bring to the data. The model predicts that owsfrom countries with a higher cost of information or stronger priors are less responsive tovariations in economic conditions at destination, as migrants rationally get less informationbefore deciding where to move. The econometric analysis reveals systematic heterogeneityin the pro-cyclical behavior of migration flows across origins that is consistent with theexistence of information frictions.
rational inattention, International migration, ddc:330, Rational inattention, information, Economía, gravity equation, D81, D83, [SHS.ENVIR] Humanities and Social Sciences/Environmental studies, Information, [SHS.STAT] Humanities and Social Sciences/Methods and statistics, international migration, F22, gravity equation JEL codes: F22, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Gravity equation
rational inattention, International migration, ddc:330, Rational inattention, information, Economía, gravity equation, D81, D83, [SHS.ENVIR] Humanities and Social Sciences/Environmental studies, Information, [SHS.STAT] Humanities and Social Sciences/Methods and statistics, international migration, F22, gravity equation JEL codes: F22, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Gravity equation
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