Citizenship for Sale: A Dilemma of Rights

20 Pages Posted: 28 Jan 2019

See all articles by Kai A. Konrad

Kai A. Konrad

Max Planck Institute for Tax Law and Public Finance; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

Ray Rees

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: January 28, 2019

Abstract

Motivated by the commercialization of citizenship rights in the European Union, we study the market for citizenship in a confederation or union of countries if the countries have full sovereignty over the right to grant national citizenship, and if this national citizenship endows members with benefits and citizenship rights of the confederation. We characterize the unique equilibrium and evaluate it from a welfare point of view. We identify country size and local and federal benefits as well as differences in local and union-wide cost externalities as the key determinants. We also consider how the union as a whole can respond to the efficiency problems such a market creates.

Keywords: citizenship-for-sale, commercialization of citizenship, European Union, Malta

JEL Classification: F15, F53, H77

Suggested Citation

Konrad, Kai A. and Rees, Ray, Citizenship for Sale: A Dilemma of Rights (January 28, 2019). Working Paper of the Max Planck Institute for Tax Law and Public Finance No. 2019-01. Available at SSRN: https://ssrn.com/abstract=3324129 or http://dx.doi.org/10.2139/ssrn.3324129

Kai A. Konrad (Contact Author)

Max Planck Institute for Tax Law and Public Finance ( email )

Marstallplatz 1
Munich, 80539
Germany

HOME PAGE: http://www.tax.mpg.de/en/pub/home.cfm

Centre for Economic Policy Research (CEPR)

90-98 Goswell Road
London, EC1V 7RR
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, 81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, 53072
Germany

Ray Rees

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics ( email )

Munich, D-80539
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
61
Abstract Views
293
rank
357,185
PlumX Metrics