The study addresses the general issues that are involved in evaluating the impact of
immigration on the public finances. It aims to provide a thorough conceptual survey,
pointing out the complexities of a full understanding and the relevance of indirect
effects. It covers both static perspectives and longer run dynamic issues. It considers
simple accounting approaches which are relatively neglectful of behavioural responses
but also tries to bring out the complexities in the nature of the relationship between
immigration and the public exchequer that come with more sophisticated modelling
of its economic effects. The article’s contribution is in bringing material together to
clarify the range of issues involved in reaching a comprehensive assessment of the
effect of immigration on public finances. Reference is made to evidence with particular
emphasis on the UK, where possible, but drawing widely from relevant research also on
other economies.