## Job Market Paper

#### Updated June 2016

I investigate the effects of population ageing on immigration policies. Voters' attitude towards immigrants depends on how the net gains from immigration are divided up in the society by the fiscal policy. In the theoretical literature this aspect is treated as exogenous to the political process because of technical constraints. This generates inconsistent predictions about the policy outcome. I propose a new equilibrium concept for voting models to analyse the endogenous relationship between immigration and fiscal policies and solve this apparent inconsistency.
I show that the elderly and the poor have a common interest in limiting immigration and in increasing public spending. This exacerbates the effects of population ageing on public finances and results in a high tax burden on working age individuals and further worsens the age profile of the population. Moreover, I show that if the share of elderly population is sufficiently large, then a society is unambiguously harmed by the tightening in the immigration policy caused by the demographic change. Finally I show that the implications of the model are consistent with the patterns observed in UK attitudinal data and in line with the findings of the empirical literature about migration.

## Working Papers

I investigate the equilibrium properties of a deterministic voting model in which the policy space is multidimensional and politicians have limited ability to commit to platforms. Specifically, a politician running alone can only offer his ideal policy. Voters can form coalitions to increase the commitment ability of politicians. Coalition structures are required to be stable in any equilibrium. This analysis is useful to answer a large class of Political Economy questions in which the multidimensional nature of the policy is crucial to model voters’ trade-offs. I show that, under suitable restrictions on voter preferences, a Median Voter Theorem holds. The main result consist of two monotone comparative statics results for the equilibrium policy outcome. Moreover, I characterize the types of coalitions that can be stable in an equilibrium. Lastly, I show how this model relates to popular alternatives in the literature, and that the main result is robust to a variety of different assumptions about the notion of stability.