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Migration Impact

(http://faculty.washington.edu/krumme/systems/migration.html)


Assumptions:
  1. Yearly Net In-Migration: 2% of Population
  2. Inmigrants have consumption and investment needs identical to resident population

Without
Migration
With
Migration
Total Capital Stock: $ 300 billion $ 306 billion
Housing $ 100 billion
Social & Industrial Infrastructure $ 100 billion
Job-Related Capital Needs $ 100 billion
Output of the Economy (GDP): $ 100 billion $ 102 billion
Consumption:
(rising +2% due to migration)
$  90 billion $  91.8 billion
Investment: Regular Reinvestment (10)
+ new capital stock to accommodate migrants (6)
(does not yet include increased investments
due to increased consumption)
Capital / Output Ratio:   3:1
$  10 billion $  16 billion
Total Demand Increase: $ 6 + 1.8 billion= $   7.8 billion



Inflationary Gap: $   5.8 billion


Literature:


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