Economics serving society

G-MonD Note n°13

Tradable Refugee-admission Quotas and EU Asylum Policy

G-MonD Note n°13 - March 2015
Authors: Jesus Fernández-Huertas Moraga and Hillel Rapoport

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The current refugee crisis in the neighborhood of the European Union is putting EU policies and institutions dealing with refugees and asylum seekers under heavy pressure to reform. This note suggests that Tradable Refugee-Admission Quotas (TRAQs) can help addressing some of the main problems identified with the existing policies. It builds on well-established models in public economics (markets for tradable quotas) and on recent contributions in the field of mechanism design (the “matching” mechanism below) to design policies that promote efficiency, fairness in burden (or responsibility) sharing, and take refugees’ preferences over destinations (and vice-versa) seriously.