NDLI: Should I Stay or Should I Go : Microeconomic determinants of migration

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Should I Stay or Should I Go : Microeconomic determinants of migration

Content Provider	Semantic Scholar
Author	Barnett-Howell, Zack
Copyright Year	2017
Abstract	There appear to be inefficiencies in the distribution of people across space as individuals stay in locations that offer little observable welfare. This paper develops and tests a new microtheoretic model of decision-making under uncertainty to explain this phenomenon. People choose how to migrate using informative but noisy signals over their underlying type, a problem this model decomposes into separate decisions over when to leave and where to go. This decomposition makes an intractable dynamic problem solvable using static rules, and allows for the level of noise in the signal to produce ex-ante rational and yet ex-post sub-optimal decisions. This theory is tested in a lab experiment where participants make stopping time and matching decisions over locations in a game and receive monetary rewards according to their performance. This experiment is run at universities in the United States and Ethiopia, where the results demonstrate that participants produce optimal solutions to the stopping time and matching rules. A randomized treatment in the game provides extra information, and demonstrates how limited information and uncertainty bind optimization decisions. 1Zack Barnett-Howell. Department of Agricultural & Applied Economics and Department of Political Science, University of Wisconsin – Madison. 301 Taylor Hall 427 Lorch St Madison, WI 53715. zbarnetthowe@wisc.edu. I cannot express sufficient appreciation for the incredible help provided on this project by Matt Kimball and Snapkick Studios, Kait Sims, Getachew Alemayehu, and the faculty of Economics at Bahir Dar University. This research received clearance from the University of Wisconsin–Madison’s Institutional Review Board via Protocol 2017-0448 and 2017-0448-CP001 “Choice Under Uncertainty". Financial support for this research was provided by a 2016 grant from the Behavioral Research Insights through Experiments (BRITE) Lab and Department of Agricultural and Applied Economics, University of Wisconsin – Madison.
File Format	PDF HTM / HTML
Alternate Webpage(s)	https://zackbh.github.io/assets/micromodel.pdf
Alternate Webpage(s)	https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=CSAE2018&paper_id=961
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article

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