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Study: Immigration can lower prices of consumer products
08-23-2007 · EurekAlert!A forthcoming study challenges the predictions of the perfectly competitive model -- that an increase in demand leads to higher prices. Instead, the study finds that immigration can lower the prices of food, clothing, furniture, and appliances and have a significant moderating effect on inflation. Saul Lach (Hebrew University of Jerusalem and the CEPR) finds that a one percentage point increase in the ratio of immigrants to natives in a city decreases prices by 0.5 percentage points on average.
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Keywords: study, immigration, lower, prices, consumer, products, price, product
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