2020
DOI: 10.1016/j.jinteco.2020.103364
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Rational inattention and migration decisions

Abstract: Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Founda… Show more

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Cited by 18 publications
(15 citation statements)
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“…Hence, it is unlikely that the jn s comply with the independence assumption. Third, random terms are likely to be spatially correlated if migrants rationally decide to limit the acquisition of information to a subset of alternatives (Bertoli et al, 2020b), if some of their (ex-post) observed characteristics have been acquired after moving (de la Croix et al, 2020), or if migration influences the distribution of country characteristics.…”
Section: Stochastic Component Of Utilitymentioning
confidence: 99%
See 1 more Smart Citation
“…Hence, it is unlikely that the jn s comply with the independence assumption. Third, random terms are likely to be spatially correlated if migrants rationally decide to limit the acquisition of information to a subset of alternatives (Bertoli et al, 2020b), if some of their (ex-post) observed characteristics have been acquired after moving (de la Croix et al, 2020), or if migration influences the distribution of country characteristics.…”
Section: Stochastic Component Of Utilitymentioning
confidence: 99%
“…Sources of violation from the IIA hypothesis stem from modeling imperfections (i.e., the existence of unobserved location characteristics or individual traits and preferences that are correlated across destinations) Fernández-Huertas Moraga, 2013, 2015;Bredtmann et al, 2017), from individuals' rational decisions to limit the costly acquisition of information to a subset of alternatives (Bertoli et al, 2020b), from the fact that some (expost) individual characteristics might have been acquired after moving to a place of residence (de la Croix et al, 2020), or from general equilibrium and spillover effects (decisions made by a group of individuals affecting the distribution of attributes). Failing to capture these effects can result in correlated random taste shocks and thus calls for the use of alternative modeling approaches.…”
Section: Introductionmentioning
confidence: 99%
“…Drastic improvements in communication technology, especially mobile internet access, make migration much easier and allow migrants to remain in contact with family members left behind. Recent research has extended gravity models of migration decisions by modelling the decision whether to acquire costly information (Bertoli et al 2020). Migrants rationally invest less in acquiring information concerning countries that they expect to be unlikely to be optimal destinations, or that have high costs of information.…”
Section: Research Agenda For the Futurementioning
confidence: 99%
“…In this model, information processing costs are proportional to the amount of mutual information, and the subject decides which information and actions to use to maximize the expected utility. This model is also known to be closely related to the logit-type stochastic choice model and recently been applied to various fields, including game theory [4,12,13], dynamic modeling [14,16,18,19] and information acquisition processing costs [11,15,17,20].…”
Section: Introductionmentioning
confidence: 99%