Foreign aid as a discipline on illegal immigration

This paper deals with a sanctions policy toward reducing illegal immigration. Using a single-period game, it shows that by imposing a penalty on each apprehended illegal alien, the host country will increase the motivation of the source country to expend money for preventing illegal immigration. It is also shown that although the sanctions are allowed to go only one way, by increasing the efficiency of catching illegal aliens, both parties will be motivated to expend money for restraining illegal immigration. The author thanks Gideon Hollander, Eliakim Katz, and an anonymous referee for their valuable help. All errors are the author's responsibility.