Introduction

This book aims to analyze refugee flows through a law and economics lens, including pertinent events in recent years (i.e., COVID-19 and the Russian invasion of Ukraine). This research offers a short historical overview of the creation of the United Nations High Commissioner for Refugees by examining some of these events utilizing law and economics methods. In addition, a law and economics model is applied based on the idea that refugees and national States might aim to maximize their net benefits. Some of the most important variables that impact the refugee “decision-making” process are then uncovered. Afterward, the 1951 Convention Relating to the Status of Refugees is discussed, delving into the main factors for its ratification and compliance by national parliaments by reflecting upon the historical context surrounding its ratification, the importance of the construction of a State based on democratic values, and the fact that this international treaty is considered a non-consequential treaty, which also incorporates some of the flexible clauses, such as reservation, denunciation, and escape clauses. Then, this book offers a study of the economic advantages and disadvantages of a centralized supernational asylum law (acquis communautaire) that might eliminate competition between legal orders in asylum law and remove negative externalities caused by “asylum shopping.” The need to harmonize asylum standards is examined through an economic approach to reach the goal of Article 5 of the Treaty on the European Union. Specifically, the economic methodology is used to investigate the application of the subsidiarity principle by considering some of the most critical economic criteria for both centralization and decentralization and applying the findings to the asylum law. In particular, this book looks at the Tiebout model, the problem of the “race to the bottom,” the reduction of transaction costs, and the importance of protecting refugee human rights. These theories are commonly used in cases with a transboundary nature, which produces (negative) international externalities. To summarize, international refugee law is critically analyzed through a multidisciplinary approach. The principal goal is to explore the “demand” and “supply” of the “refugee law market” through the lens of the law and economics approach but with the context of human rights. After explaining the evolution of the human rights approach by incorporating law and economics insights, this scientific work elaborates on the main “push” factors that impact the refugee “choice”—demand side—and on the public policy—supply side. In conclusion, some policy suggestions are proposed that consider the national preferences of destination countries and the protection of refugee rights.