Seminars

Regulation and Environment Seminar

The Regulation and Environment Seminar is a seminar series dedicated to presenting and discussing research in Industrial Organization and Environmental Economics. This seminar is organized by the Paris School of Economics in collaboration with the University Paris 1 Panthéon-Sorbonne.
Organizers: Katheline Schubert (Environment) and Angelo Secchi (Regulation).
Contact: Sophie Gozlan

Upcoming events

Monday 16 December 2019 12:00-13:00
salle R1-14, campus Jourdan - 75014 Paris
LUENGO Andres (Pontificia Universidad Javeriana) : Environmental Misallocation in the Copper Industry
Abstract
We use mine-level data from the international copper industry to quantify environmental misallocation. We define this concept as the ratio between the observed carbon dioxide (CO2) emissions in the industry and the level reached by a social planner that allocate the observed output across mines so as to minimize emissions, conditional on the current state of the technology and some well-defined extraction rules. We find that CO2 emissions derived from the world copper industry could be reduced by 47% under the planner's allocation. We also find that the latter allocation of output would bring down production costs by 24% at the aggregate level. Our results suggest that a cleaner environment is not necessarily tied to lower levels of productive efficiency.
Monday 3 February 2020 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
FRANÇOIS Manon (PSE) : *
Monday 10 February 2020 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
MOLINA Hugo (KU Leuven) : *
Monday 2 March 2020 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
RODHES Andrew (TSE) : *
Monday 9 March 2020 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
BRETSCHGER Lucas (ETHZ) : *
Monday 16 March 2020 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
FISHMAN Arthur (Bar-Ilan University) : *
Monday 23 March 2020 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
LAUKKANEN Marita (VATT) : *
Monday 4 May 2020 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
SOVINSKI Michelle (Universitat Manheim) : *
Monday 11 May 2020 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
PICCOLO Salvatore (University of Bergamo) : *
Monday 18 May 2020 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
CRAWFORD Gregory (UZH) : *
Monday 22 June 2020 12:00-13:00
salle R2-20, campus Jourdan - 75014 Paris
MIKLOS-THAL Jeanine (University of Rochester) : *

Archives

Monday 9 December 2019
THE ECONOMICS OF ENERGY TRANSITION
Full text [pdf]
Monday 2 December 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
SABATINO Lorien (Politecnico di Torino) : Fast Internet and Firm Creation: Evidence from Italy
Abstract
In this paper we provide new empirical evidence on the impact of ultra-fast broadband deployment on local growth, and in particular on local new business establishment. We leverage on a unique dataset collecting data on broadband coverage and firm creation for every Italian municipality over the period 2013-2018. Our identification strategy relies on the distance between municipalities and the closest telephone exchange with optical line terminal (OLT). Preliminary results show that OLS estimates are upward biased, as they overestimate the impact of ultra-fast broadband deployment on firm establishment. Results depend crucially on the industrial sector we consider: technology-intensive sectors such as ICT and scientific activities are strongly positively affected by the introduction of new broadband infrastructure, while more traditional sectors such as agriculture and manufacturing are not significantly affected by high-speed connections. Taken together, our results highlight the heterogeneous effects of new broadband technologies on local business establishment.
Monday 25 November 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
DAUBANES Julien (University of Geneva (GSEM) and MIT (CEEPR)) : Green finance and climate policy
Jean-Charles-Rochet: University of Geneva (SFI, GSEM) and MIT (Sloan)
Abstract
A rapidly increasing amount of investments commit firms to undertake climate-friendly projects. Recent empirical evidence shows that certified green bonds have a significant impact on CO2 emissions. Yet little is known about the economic mechanisms of green finance and its possible contribution to climate policy. This paper develops the first formal analysis of green finance as a climate policy instrument. We examine firms that undertake green and conventional projects, and finance the former through green bonds. Green projects emit less CO2, but they entail costs which stock investors do not directly observe. Our theory holds that green bonds allow firms to signal to stock investors their otherwise unobservable efficiency at controlling their CO2 emissions. Our model consistently accounts for stylized facts on the recent development of green finance. It explains why firms benefit from green bonds even though these bonds' yield spread is small in practice compared to conventional bonds. The analysis has direct implications for the effective design of climate policy. Like carbon taxation, green finance induces firms to undertake more green projects at the expense of conventional ones. It may further amplify the effect of carbon taxation. Moreover, unlike standard voluntary programs, green finance induces firms to abandon their least efficient conventional projects.
Monday 21 October 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
RUIZ Celia (Toulouse School of Economics) : Agglomeration, Transport and Productivity: Evidence from Toulouse Metropolitan Area
Abstract
Economic activity tends to be highly concentrated. These agglomeration or concentration forms are driven by spatial externalities on productivity, and are named agglomeration externalities. Transport improvements - by reducing the interaction cost between economic agents placed in different locations - can extend the geographic scope of these externalities on productivity. Furthermore, transport exposure also affects productivity directly as it may bring firm and employee relocations by making some places more attractive than others. Therefore, the objective of this paper is twofold. Firstly, to estimate the extent of agglomeration externalities at the urban scale, and secondly, to estimate the - direct and indirect - impact of transport exposure on productivity, using very fine georeferenced data on the road and public transport networks, and on more than one million employees working in a number of heterogeneous zones within Toulouse metropolitan area. This constitutes a valuable input for an urban planner who wants to maximize city’s wealth by identifying the disaggregated productivity impact of new transport infrastructure. To achieve these goals, we first estimate productivity effects of agglomeration and transport measures implementing a wage determination model using very disaggregated and georeferenced data of a sample of employees working in Toulouse in 2013 and 2015. We perform a two stage estimation approach (Combes et al. (2008)). The first stage of the regression allows us to assess the importance of industry effects and sector concentration characteristics against those highlighting true productivity differences across zones. In the second stage of the regression, we explain those productivity differences across zones - represented by the estimated first stage’s area-year fixed effects – by our local factors of interest: local employment density, and local transport exposure measures. Finally, and to have a full representation of transport impacts, we investigate the effect of transport exposure on local employment density. Our results suggest that out transport exposure measures have a substantial and significant effect on local productivity and local employment density.
Monday 14 October 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
NEWMAN Andy (Boston University) : Competing for a Quiet Life: An Organizational Theory of Market Structure
Patrick Legros, Zsolt Udvari
Abstract
We develop a property-rights model of endogenous market structure in which contracting imperfections, rather than scale economies, emerge as the source of market power. Production of a homogenous good is carried out by substitutable, incentive-constrained teams that can stand alone as perfect competitors or sell their assets to profit-motivated HQs, thereby becoming subordinate members of their firms. HQs subsequently Cournot compete in the product market. Team output and costs aggregate linearly within and across firms, there are no diseconomies of HQ ownership, and HQs are abundant. A fundamental hold-out problem places lower and upper bounds on the degree of concentration. The equilibrium market structure is typically an oligopoly, sometimes with a competitive fringe. Concentration may increase with the size of the market, unlike in the standard Cournot entry model. Entry barriers and competition policy may have distinct effects depending on the demand regime, which has implications for optimal policy in rich vs. developing countries.
Monday 7 October 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
LISKI Matti (Aalto University) : Do consumers gain when new technologies improve the efficiency of goods trade?
Ivo Vehviläinen
Abstract
This paper points out the basic price theory predictions for the consumer welfare gain from new technologies that improve the efficiency of goods trade. Micro-data on over 140 million of bids from three electricity markets reveals strikingly different consumer welfare impacts from new technologies. Consistent with the theory, the results can be explained by structural differences in excess demand: its convexity (concavity) is a determinant of consumers’ gain (loss).
Full text [pdf]
Monday 30 September 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
REILEY David (University of California - Berkeley) : Measuring Consumer Sensitivity to Audio Advertising:A Field Experiment on Pandora Internet Radio
Jason Huang, Nickolai M. Riabov
Abstract
Measuring Consumer Sensitivity to Audio Advertising:A Field Experiment on Pandora Internet RadioJason HuangDavid H. ReileyNickolai M. Riabov?April 21, 2018AbstractA randomized experiment with almost 35 million Pandora listeners enables us to measure the sensi-tivity of consumers to advertising, an important topic of study in the era of ad-supported digital contentprovision. The experiment randomized listeners into nine treatment groups, each of which received adifferent level of audio advertising interrupting their music listening, with the highest treatment groupreceiving more than twice as many ads as the lowest treatment group. By keeping consistent treatmentassignment for 21 months, we are able to measure long-run demand effects, with three times as muchad-load sensitivity as we would have obtained if we had run a month-long experiment. We estimatea demand curve that is strikingly linear, with the number of hours listened decreasing linearly in thenumber of ads per hour (also known as the price of ad-supported listening). We also show the negativeimpact on the number of days listened and on the probability of listening at all in the final month. Us-ing an experimental design that separately varies the number of commercial interruptions per hour andthe number of ads per commercial interruption, we find that neither makes much difference to listenersbeyond their impact on the total number of ads per hour. Lastly, we find that increased ad load causesa significant increase in the number of paid ad-free subscriptions to Pandora, particularly among olderlisteners.
Full text [pdf]
Monday 23 September 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
SCHUTZ Nicolas (University of Manheim) : All-Pay Oligopolies: Price Competition with Unobservable Inventory Choices
Joao Montez
Abstract
We study production-in-advance in a setting where firms first source inventories that remain unobservable to rivals, and then simultaneously set prices. In the unique equilibrium, each firm occasionally holds a sale relative to its reference price, resulting in firms sometimes being left with unsold inventory. In the limit as inventory costs become fully recoverable, the equilibrium converges to an equilibrium of the game where firms only choose prices and produce to order - the associated Bertrand game (examples of such games include fully-asymmetric clearinghouse models). Thus, away from that limit, our work generalizes Bertrand-type equilibria to production in advance, and challenges the commonly-held view associating production in advance with Cournot outcomes. The analysis involves, as an intermediate step, mapping the price-inventory game into an asymmetric all-pay contest with outside options and non-monotonic winning and losing functions. We lay out applications to taxation, merger analysis, information sharing, ex-ante investments, and vertical relations.
Full text [pdf]
Monday 16 September 2019 12:00-13:00
salle R1-13, camppus Jourdan - 75014 Paris
MANARESI Francesco (Bank of Italy) : Born in Hard Times: Startups and Intangible Capital During the Financial Crisis
Abstract
We show that the credit crunch of 2007-2013 favoured the adoption by startups of more efficient, intangible-intensive technologies. Using data for the universe of Italian corporations, we document that the cohorts of firms born during the crisis significantly increased their share of intangible capital relative to both incumbents and comparable young firms born before the crisis. Moreover, the entry rates of intangible-intensive startups decreased by less than those of other firms. We estimate that this selection is directly linked to the tightening of credit conditions. We use a firm dynamics model to unveil the mechanism behind these patterns. Intangible goods make firms more efficient and profitable, reducing their demand of total capital and, crucially, their leverage at entry: this increases their resiliency to a financial shock. In the aggregate, a credit tightening changes the composition of new cohorts in favor of intangible-intensive producers, resulting in a persistent increase in their intangible capital accumulation.
Monday 24 June 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
PARENTI Mathieu (Université Libre de Bruxelles) : Sales and Markup Dispersion: Theory and Empirics
Monika Mrazova and J. Peter Neary
Abstract
We characterize the analytic relationship between the distributions of two variables linked by a structural model. We then highlight four theoretical applications to models of heterogeneous firms in monopolistic competition. First, we ask which demand func- tions are consistent with productivity and sales distributions having the same form (whether Pareto, lognormal, or Fr ?echet) in the cross section. The answer is a new “CREMR” demand function (Constant Revenue Elasticity of Marginal Revenue). Sec- ond, we show that CREMR is also necessary and sufficient for Gibrat’s Law to hold over time. Third, we use our methodology to quantify misallocation at the microeco- nomic level (both in general and in the special CREMR case). Fourth, we characterize the distribution of markups implied by any assumptions on demand and productivity. Finally, we show in an empirical application using Indian firm-level data on sales and markups that CREMR-based distributions yield a parsimonious fit superior to many widely-used alternatives.
Full text [pdf]
Monday 27 May 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
KALKUHL Matthias (University of Potsdam) : The Impact of Climate Conditions on Economic Production. Evidence from a Global Panel of Regions
Wenz Leonie
Abstract
We estimate the impacts of climate on economic growth using Gross Regional Product (GRP) for more than 1,500 regions in 77 countries. In temperate and tropical climates, annual temperature shocks reduce GRP whereas they increase GRP in cold climates. With respect to long-term climate conditions, one degree of temperature increase reduces output by 2-3%. The effect of annual or long-term precipitation is found to be less important and less robust among specifications. For projected global warming of 4°C until 2100, we find that regions lose 9\% of economic output on average and more than 20% of output in tropical regions.
Full text [pdf]
Monday 20 May 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
BIANCINI Sara (Université de Cergy) : Mission Drift in Microcredit: A Contract Theory Approach
David Ettinger, Baptiste Venet
Abstract
We analyze the relationship between Micro nance Institutions (MFIs) and external funding institutions, with the aim of contributing to the debate on mission drift (the tendency for MFIs to lend money to wealthier borrower rather than to the very poor). We suggest that funding institutions build incentives for MFIs to choose the adequate share of poorer borrowers and to exert effort to increase the quality of the funded projects. We show that asymmetric information on both the effort level and its cost may increase the share of richer borrowers. However the unobservability of the cost of effort has an ambiguous effect. It pushes efficient MFIs to serve a higher share of poorer borrowers, while less efficient ones decrease their poor outreach. JEL codes: O12, O16, G21. Keywords: Micro nance, Funding Institutions, Mission Drift, Contract Theory.
Monday 13 May 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
LEROUTIER Marion : Carbon Pricing and Power Sector Decarbonisation: Evidence from the UK
Abstract
The electricity and heat generation sector represents about 40 % of global greenhouse gas (GHG) emissions in 2016. Policy-makers have implemented a variety of instru- ments to decarbonise their power sector. This paper examines the UK Carbon Price Floor (CPF), a novel carbon pricing instrument implemented in the United Kingdom in 2013. After describing the potential mechanisms behind the recent UK power sector decarbonisation, I apply the synthetic control method on country-level data to estimate the impact of the CPF on per capita emissions. I discuss the importance of potential confounders and the amount of net electricity imports imputable to the policy. De- pending on the speci_cation, the abatement associated with the introduction of the CPF range from 104 to 156 millions tons of equivalent CO2 over the 2013-2017 period. This implies a reduction of between 39% and 48% of total power sector emissions by 2017. Several placebo tests suggest that these estimates capture a causal impact. This paper shows that a carbon levy on high-emitting inputs used for electricity generation can lead to successful decarbonisation.
Monday 6 May 2019 12:00-13:00
salle R1-13, campus Jourdan, 75014 Paris
FABRE Brice (IPP) : Can We Reconcile French People with the Carbon Tax? Disentangling Beliefs from Preferences
Thomas Douenne
Abstract
Using anewsurvey and National households’surveydata, we investigate French perception over carbon taxation. We find that French people largely reject a tax and dividend policy where revenues of the tax would be redistributed uniformly. However, their perception about the properties of the tax are biased: people overestimate the negative impact on their purchasing power, wrongly think the scheme is regressive, and do no tperceive it as environmentally effective. Our econometric analysis shows that correcting these three bias would suffice to generate majority acceptance. Yet, we find that people’s beliefs are persistent and their revisions biased towards pessimism, so that only few can be convinced.
Full text [pdf]
Monday 15 April 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
CALZOLARI Giacomo (European University Institute) : Artificial Intelligence, Algorithmic Pricing and Collusion
Emilio Calvano,Vincenzo Denicolò and Sergio Pastorello
Abstract
Pricing algorithms are increasingly replacing human decision making in real marketplaces. To inform the competition policy debate on possible consequences, we run experiments with pricing algorithms powered by Artificial Intelligence in controlled environments (computer simulations). In particular, we study the interaction among a number of Q-learning algorithms in the context of a workhorse oligopoly model of price competition with Logit demand and constant marginal costs. We show that the algorithms consistently learn to charge supra-competitive prices, without communicating with each other. The high prices are sustained by classical collusive strategies with a finite punishment phase followed by a gradual return to cooperation. This finding is robust to asymmetries in cost or demand and to changes in the number of players.
Full text [pdf]
Monday 8 April 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
KASSAB Dina (University of Cairo) : Agree to Disagree ? Making sense of vagueness in International Environmental Agreements
Abstract
International Environmental Agreements (IEA) tend to bear a high degree of vagueness. They are expressed in terms of levels of standards, with a permitted degree of discretion to the signatories, rather than a specific policy commitment. Why would negotiators craft vague agreements that risk non-compliance ? Using a game-theoretic model, where information regarding institutional capacities of potential participants is asymmetric, I argue that vagueness offers the ability to manage uncertainty over policy outcomes. In doing so, I contribute to the theory of international environmental agreements, which has overwhelmingly assumed non-compliance to be observable and non-enforcement to be punishable. By also incorporating countries ratification decisions, this paper makes several important contributions : it contributes to a more realistic modeling of the treaty formation, it endogenizes the number of participants as well as their characteristics and it identifies the determinants of the optimal level of ambiguity in designing an IEA.
Monday 1 April 2019 12:00-13:00
salle R1-13, campus Jourdan, 75014 Paris
DECAROLIS Francesco (University of Unibocconi) : From Mad Men to Maths Men: Concentration and Buyer Power in Online Advertising
Gabriele Rovigatti
Abstract
This paper analyzes the impact of intermediaries concentration on the allocation of revenues in online platforms. We study sponsored search - the sale ad space on search engines through online auctions - documenting how advertisers increasingly bid through an handful of specialized intermediaries. This enhances automated bidding and data pooling, but lessens competition whenever the intermediary represents com- peting advertisers. Using data on nearly 40 million Google’s keyword-auctions, we first apply machine learning algorithms to cluster keywords into thematic groups serving as relevant markets. Then, through an instrumental variable strategy, we quantify a negative and sizeable impact of intermediaries’ concentration on platform’s revenues.
Monday 25 March 2019 12:00-13:00
salle R1-13, campus Jourdan, 75014 Paris
MARTINEZ-ZARZOSO Inma (University of Göttingen) : Searching for Grouped Patterns of Heterogeneity in the Climate-Migration Link
Abstract
This paper investigates the extent to which international migration can be explained by climate change and whether this relationship varies systematically between groups of countries. The primary focus is to further investigate the differential effect found for countries with different income levels using a high-frequency migration dataset and allowing the country-grouping to be data-driven. For this purpose, the main results of this paper are based on the group-mean fixed-effects (GFE) estimator proposed by Bonhomme and Manresa (2015), which allows us to group the countries of origin according to the data generating process. The results indicate that on average, increasing average temperatures are associated with an increase in emigration rates, but that the pattern differs between groups. The relationship is driven by a group of countries mainly located in sub-Saharan Africa and Central Asia. No statistically significant association is found between average local precipitation and emigration.
Monday 18 March 2019 12:00-13:00
salle R1-13, campus Jourdan, 75014 Paris
BECERRA VALBUENA Luis : Do local ENSO events affect air quality and health in Bogotá ?
Professor Jorge
Abstract
We aim to analyze if, for the case of Bogota, the ENSO events (El Niño and la Niña) have an effect on health via weather and air quality. To our knowledge, no one seems to have investigated further the ENSO events on weather, how this relates with the concentration of air pollutants and the impact it could have on health outcomes. The question seems more relevant now as an increase in intensity and frequency of El Niño phenomena are expected in the coming years (see chapter 3 of last report Global Warming of 1.5 Celsius degrees the Intergovernmental Panel of Climate Change). The paper is purely empirical and uses a large database for a period running from 1997 to 2015 for different stations measuring pollutants as well as meteorological and weather variables along the city. The data are rich (by day and hour in many cases) and allow to do a unique analysis. Information of health outcomes come from a data-set of health centers along the city, with information of respiratory and cardiovascular diseases between 2012 to 2015. Information of births and deaths (weight at birth, height at birth, weeks of gestation, etc) is available from 1997 to 2015. Information of the ENSO events is publicly available by month since 1950. As a first step, we have estimated the effects of ENSO events on weather and on pollutants hour by hour, using those phenomena as a quasi-experiment; this has allowed us to understand better at which time of the day, weather and pollutant factors are highly or less affected by ENSO events. In terms of weather, the effect goes in the expected direction, with higher temperature in El Niño and higher rain in La Niña. However, the effects on weather variables tend to be higher during La Niña than during El Niño, and in both cases, the maximum effects happen during the afternoon peak, in comparison with the morning. In terms of pollution, El Niño brings higher temperatures, and pollutants such as particulate matter and CO increase during these events, in peak hours. However, La Niña brings more rain which could help to clean those contaminants. Importantly, peak hours of transport matter to increase pollution, and ENSO events are more relevant during this time. The hours of the day when the effects are more important should be considered in the health equation. The step to follow will be to test the potential effects this could have on health costs, and to estimate the economic cost of these phenomena (on QUALYS-DALYS).
Monday 11 March 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
VONA Francesco (Sciences Po) : The Impact of Energy Prices on Employment and Environmental
Abstract
This paper evaluates the influence of energy prices on employment and environmental performance of French manufacturing establishments over the period of 1997-2015. To identify price effects, we construct a shift-share instrument that captures only the exogenous variation in establishment-specifi c energy prices. Our results highlight a trade-off between environmental and economic goals: an increase in energy prices brings about not only substantial reductions in energy consumption and CO2 emissions, but also modestly negative impacts on employment and productivity. This trade-off will be ampli fied by a carbon tax, especially in trade-intensive and energy-intensive sectors. Finally, employment effects are not biased against unskilled workers and are mitigated by labor reallocation across establishments within the same company.
Monday 25 February 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
GERLAGH Reyer (University of Tilburg) : Family Planning and Climate Change
Abstract
Historical data show that the increase in emissions is for only one-fourth attributable to the growth of emissions per person, whereas three-fourths are due to the growth of population. This striking evidence notwithstanding, the majority of climate-economic studies focus on emissions through the lens of energy externalities in production and consumption activities, and on policies to correct these. Population dynamics in those models is typically taken to follow exogenous trends. Yet population growth is a key component of projections of future emissions. Population is expected to rise to around 9.8 billion by 2050, and climate economists must include the environmental consequences of individuals' reproductive decisions into their analyses. In this paper, we study the interactions between climate change and population dynamics. We develop an analytical model of endogenous fertility and embed it in a calibrated climate-economy model. The social optimum can be implemented through carbon pricing policies and policies aiming at smaller families. Population without family planning policies peaks at 12 billion, while optimal family planning brings the peak back to 9 billion. If family planning cannot be addressed as a separate policy instrument for climate policies, carbon taxes need to be lowered. Our results present family planning as an integral part of climate policies and quantify the costs of neglecting the interaction.
Monday 18 February 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
WANG Oliver (NYU Stern) : Identification and Estimation of Demand for Bundles
Alessandro Iaria
Abstract
We study the identification and estimation of a mixed logit model of demand for bundles. We generalize the model proposed by Gentzkow (2007) in three ways. First, we allow the demand synergies among products (capturing complementarity and substitutability) to be bundle-individual specific and treated as random coefficients. Second, we allow the joint distribution of the random coefficients to belong to any parametric family. Third, our arguments are not specific to the three-bundle case but are directly developed for choice sets of any size. We propose sufficient conditions for identification and for lack of it. Our sufficient conditions for identification also guarantee consistency and asymptotic normality of a constrained MLE (MPEC) that alleviates the curse of dimensionality inherent in estimation, and it is robust to both price endogeneity and sampling error in the observed market shares. We use our methods to investigate the welfare implications of mixed bundling pricing in the ready-to-eat cereal industry in the USA. The profit gains of mixed bundling pricing with respect to pure components pricing are sharply decreasing in the level of competition: while a monopolist would benefit from mixed bundling, the observed oligopoly would not—even ignoring potential increases in logistics costs. Given any market structure, mixed bundling leads to lower levels of consumer surplus than pure components.
Monday 11 February 2019 12:00-13:00
R1-13, campus Jourdan - 75014 Paris
RAUSCHER Michael (University of Rostock) : Demographic Change and Climate Change
Abstract
The paper uses a continuous-time overlapping-generations model with endogenous growth and pollution accumulation over time to study the link between longevity and global warming. It is seen that increasing longevity accelerates climate change in a business-as-usual scenario without climate policy. If a binding emission target is set exogenously and implemented via a cap-and-trade system, the price of emission permits is increasing in longevity. Longevity has no effect on the optimal solution of the climate problem if perfect intergenerational transfers are feasible. If these transfers are absent, the impact of longevity is ambiguous.
Monday 4 February 2019 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
STERN Lennart (PSE) : *
Monday 10 December 2018 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
TAYLOR Scott (University of Calgary) : Is Free Trade Good for Resources - Labellisé par les Assises de la recherche de l'Université Paris 1
Monday 3 December 2018 12:00-13:00
salle R1-13, campus Jourdan, 75014 Paris
POZZI Andrea (EIEF) : The Cost of Steering in Financial Markets: Evidence from the Mortgage Market
Leonardo Gambacorta, Luigi Guiso, Paolo Mistrulli and Anton Tsoy
Abstract
Many households lack sophistication required to make complex financial decisions and can be steered by intermediaries to certain financial products via informative or distorted advice, advertisement, shrouding, etc. We build a model of the mortgage market in which banks attain their optimal mortgage portfolio by both setting rates and steering their clientele. “Sophisticated” households know which mortgage type is best for them; “naive” are susceptible to bank’s steering. Using data on the universe of Italian mortgages, we estimate the model and quantify the welfare implications of steering in this market. The average cost of the distortion is equivalent to an increase in the annual mortgage payment by 11%. However, since steering often also conveys information about mortgages, restricting steering results in a loss of 998 euros per year on average. A financial literacy campaign is beneficial for naive households, but hurts sophisticated ones.
Monday 26 November 2018 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
SOMANATHAN Eswaran (Indian Statistical Institute) : The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing
Rohini Somanathan, Anant Sudarshan, and Meenu Tewari
Abstract
Hotter years are associated with lower economic output in country-level data. We show that the effect of temperature on labor is an important part of the explanation. Using high-frequency micro data from selected firms in India, we find that worker productivity on hot days declines by 2 to 4 percent per degree celsius. Sustained heat also increases worker absenteeism. Using a national panel of manufacturing plants, we find similar temperature effects on output and show that these can be fully accounted for by reductions in the productivity of labor. Estimated effect sizes are consistent with studies that rely on country GDP panels.
Full text [pdf]
Monday 19 November 2018 12:00-13:00
salle R1-13, campus Jourdan, 75014 Paris
TREICH Nicolas (TSE) : An economic model of the meat paradox
N. Hestermann et Y. Le Yaouanq
Abstract
How can individuals care about animals and, at the same time, eat meat? We design a survey study to explore this \meat paradox. Survey participants (N = 3054) underestimate farm animal suffer- ing, and underestimate it more (i.e., are less realistic) when they eat more meat. Building on the literature on cognitive dissonance, we develop a model in which individuals form self-serving beliefs in order to reduce the moral guilt associated with meat consumption. The model characterizes how individuals' beliefs about animal wel- fare and their attitude towards information are affected by the eco- nomic environment (e.g., price of meat, salience of animal welfare), and by individuals' preferences (e.g., taste for meat, moral cost of guilt). Several empirical observations are consistent with our model.
Full text [pdf]
Monday 12 November 2018 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
VANDENBUSSCHE Hylke (KU Leuven) : Input reallocation in Multi-product Firms
C. Viegelahn
Abstract
This paper documents the within firm reallocation of inputs and outputs as a result of a trade policy shock on the input side. A unique firm-input level dataset for India with information on different raw material inputs used in production, enables us to identify firms with imported inputs subject to trade policy. To guide the empirics, we first develop a back-bone model of heterogeneous firms that source inputs from abroad. We find that affected firms engage in input reallocation and lower their use of protected inputs by 25-40%, relative to other inputs. Especially large firms and multi-output firms skew their input use towards unprotected inputs. To identify the output reallocation ensuing trade protection on inputs, we develop a firm level input-output correspondence. Firms reduce their sales of outputs made of protected inputs, resulting in an annual aggregate manufacturing output growth loss for India of around 10%. We find a firm level decrease in markups, suggesting that the cost of imported inputs is only partially passed through to output prices. Thus, this paper documents a new channel through which trade protection negatively impacts input-using firms.
Monday 5 November 2018 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
DELMAS Magali (Maggie) (UCLA) : Sustainable Practices and Wine Quality: Is there value in Certification?
Olivier Gergaud
Abstract
More and more wineries are using third-party eco-certification, such as organic or biodynamic certification, to communicate their sustainable practices. At the same time some wineries are adopting sustainable practices without third party certification. In France for example, some wineries self-proclaim themselves "Viticulture Raisonnée" (reasoned viticulture), a flexible approach to sustainability devoid of the rigidity of third party certification. The presence of these different sustainable practices raises the question of their comparative value. While previous research estimates that third party eco-certification leads to increased quality as evaluated by experts, it is unknown whether non-certified sustainable practices are also associated with quality improvements. Evaluating the impact of non-certified sustainability practices on quality is challenging due to the difficulty of identifying such practices. In this paper, we use French data on experts' quality ratings from Gault Millau, Gilbert Gaillard and Bettane Desseauve, to compare the ratings of self-proclaimed sustainable wines to third party eco-certified wines and conventional wines. A total of 140,690 wines is analyzed. Preliminary findings based on different matching techniques indicate that self-proclaimed sustainable wines are of lower quality than conventional wines, while eco-certified wines are of higher quality than conventional wines. This suggest that non certified practices could be associated with greenwashing. JEL Classification: L15, L66; Q5
Monday 22 October 2018 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
DOUENNE Thomas : Disaster risks, disaster strikes and economic growth: the role of preferences
Abstract
This paper studies the role of preferences on the link between disasters and growth. An endogenous growth model with disasters is presented in which one can derive closed-form solutions with nonexpected utility. The model distinguishes disaster risks and disaster strikes and highlights the numerous mechanisms through which they may affect growth. It is shown that separating aversion to risk from the elasticity of inter-temporal substitution bears critical qualitative implications that enable to better understand these mechanisms. In a calibration of the model, it is shown that for standard parameter values, the additional restriction imposed by the time-additive expected utility can also lead to substantial quantitative bias regarding optimal risk-mitigation policies and growth. The paper thus calls for a wider use of non-expected utility in the modeling of disasters, in particular with respect to environmental disasters and climate change.
Full text [pdf]
Monday 15 October 2018 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
MILLOCK Katrin : The effect of flood risk information on property values around Paris
Edwige Dubos-Paillard, University Paris 1 Panthéon-Sorbonne (Géographie-cités) and Emmanuelle Lavaine, Montpellier University (CEEM)
Abstract
The paper examines the effect of information about flood zone location on property prices in the region around Paris, France, over the period 2002 to 2012. We use unique data on real estate transactions and geo-localised amenities from a major European city exploiting the different dates of implementation of special risk zoning regulation. Using an identification strategy based on a difference-in-difference specification, the results indicate that home prices for similar real estate are 3 to 7% lower when located in a flood risk zone, depending on the sub market (flats or houses), and the discount increases the higher is the flood risk designated by the regulation. The effect is attenuated for buyers coming from locations with previous flood events.
Monday 8 October 2018 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
TOIVANEN Otto (Aalto University) : Welfare effects of R&D support policies
Tuomas Takalo & Tanja Tanayama
Abstract
We build a structural model of the R&D subsidy process incorporating externalities, fixed costs of R&D, and financial market imperfections. We estimate the model using project level R&D and subsidy data from Finland. We conduct a counterfactual analysis of an optimal R&D tax credit policy, the first and second best policies, and laissez-faire with no support and compare them to the subsidy policy used in Finland. We find that the optimal R&D tax credit rate is 0.24, which is lower than the observed average R&D subsidy rate (0.36). R&D participation does not vary across regimes. The R&D investments and spillovers generated by the optimal R&D tax credit and subsidy policies are significantly higher than under laissez-faire but smaller than in the first and second best. Neither tax credits nor subsidies improve welfare compared to laissez-faire.
Monday 1 October 2018 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
GOUEL Christophe (INRA) : The Crucial Role of International Trade in Adaptation to Climate Change
Abstract
Climate change effects on agricultural yields will be uneven over the world with a few countries, mostly in high latitudes, that may experience gains, while most will see average yield decrease. This paper aims at quantifying the role of international trade in attenuating the effects of climate change by allowing the expression of the new climate-induced pattern of comparative advantages. To do this, we develop a quantitative general equilibrium trade model where the representation of acreage and land use choices is inspired from modern Ricardian trade models but also consistent with theoretical and empirical literature on land use choices. The model is calibrated on spatially explicit information about potential yields before and after climate change coming from the agronomic literature. The results show that the climate-induced yield changes generate large price movements that incentivize adjustments in acreage and trade. The new trade pattern is very different from the current one showing the important role of trade flows in adapting to climate change. This is confirmed by large increased welfare losses from climate change when adjustments in trade flows are constrained.
Full text [pdf]
Monday 24 September 2018 12:00-13:00
salle R1-13, campus Jourdan - 75014 Paris
MARTIMORT David (PjSE) : Screening Contracts As A Barrier To Entry
Jérôme Pouyet and Lars Stole
Abstract
We uncover how strategic and screening concerns interact in the design of ver- tical contracts under the threat of entry. We provide a rationale for the use of rebates, discounts and quantity requirements in a context with uncertainty on the fixed cost of entry, multi-unit demand and private information on the buyer’s prefer- ences. These key ingredients were missing from the extant literature. First, private information on the buyer’s tastes motivates the use of price discounts as screening devices as in any nonlinear pricing context. Yet, price discounts are modified by the threat of entry in subtle ways that depend on the contractual environments. Second, the buyer has a downward sloping demand and finds it sometimes optimal to split consumption between the incumbent and the entrant, with the proviso, con- sistent with most recent Antitrust cases, that the entrant, although more efficient, never serves the whole demand. Third, although it can be attractive on alloca- tive grounds, entry might not always be socially optimal because of uncertainty on the fixed cost of entry. We study two different scenarios. In the first one, the case of market-share contracts, the incumbent can design different nonlinear tariffs depending on whether the buyer also purchases from the entrant or not. In the second scenario, the incumbent can only offer a single nonlinear tariff and cannot distinguish whether the buyer also purchases from the entrant or not. Our analy- sis stresses properties of nonlinear prices that are specific to an entry context and that respond to the incumbent’s incentives to shift rent under the aforementioned contractual restrictions.
Monday 11 June 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
WAGNER Ulrich : THE CO-POLLUTION BENEFITS OF CLIMATE POLICY: EVIDENCE FROM THE EU EMISSIONS TRADING SCHEME
with Laure B. de Preux
Abstract
Carbon dioxide (CO2) emissions are known to cause global climate change but no damage to the local environment. However, because CO2 is often jointly produced with other substances that pollute the environment, CO2 abatement may generate ancillary benefits, especially for human health. Previous research suggests that these co-benefits can offset a substantial share of the economic costs of mitigation policies. This paper conducts the first empirical test of this hypothesis in the context of the European Emissions Trading Scheme (EU ETS) for CO2. The econometric analysis exploits comprehensive microdata on discharges of more than 90 different pollutants into air, water and soil, at more than 28,000 commercial installations in 31 European countries. It is found that the EU ETS decreased air releases of some pollutants while increasing water releases of other pollutants. Moreover, in some cases the patterns of spatial redistribution are strongly correlated with income, population size or age. The implications for the efficiency and environmental justice of the EU ETS are discussed.
Monday 4 June 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
JESSOE Katrina (UC Davis) : Gains from Water Markets: Micro-level Evidence on Agricultural Water Demand
with Ellen Bruno
Abstract
This paper demonstrates that the establishment of well-functioning water markets may substantially mitigate the costs of drought. We develop a framework to model the costs of incomplete water regulation, and simulate the efficiency gains from water trading across the agricultural and urban sectors. Critical to this exercise are credible estimates of the price elasticity of demand for agricultural water. We use monthly panel data on well-level agricultural groundwater extraction in an area that charges volumetric rates for groundwater to estimate the elasticity. Demand is inelastic, with estimates ranging from -0.17 to -0.22. Our simulation suggests that in an agriculturally productive and dense urban area of California, a water market could have reduced the welfare impacts to residential users from the 2015 drought mandate by 60% from $83 million to $33.5 million. Water markets present a promising adaption strategy to climate change.
Monday 28 May 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
ELLISON Glenn (MIT) : A Model of Online Retail Recommendations
Monday 16 April 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
TRAEGER Christian (University of Oslo) : ACE – Analytic Climate Economy
Abstract
The paper develops an analytic integrated assessment model of climate change. It enhances our current understanding of climate policy and explains crucial relations to the broader audience. The model offers a novel framework to address climate change uncertainties. The analytic solution overcomes Bellman’s curse of dimensionality for a wide range of stochastic processes. I analyze the policy implications of the main climate uncertainties and show the different welfare implications of “objective” uncertainty, epistemological uncertainty, and anticipated learning. In contrast to earlier suggestions in the literature, uncertainty is not more relevant to climate change evaluation than discounting, but uncertainty makes the policy recommendations even more sensitive to the calibration of the discount rates and its individual components than under certainty. The present Analytic Climate Economy (ACE) is the first analytic model comprising all the components considered essential for quantitative policy advising.
Monday 9 April 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
GAGNEPAIN Philippe (Université Paris 1, PSE) : Market power and volatility in the airline industry
With A. Belova, P. Gagnepain, et S. Gauthier
Abstract
In a strategic game where firms compete against each other, the set of rationalizable strategies for each player entails all the best responses to the other’s decisions. The theoretical litterature has suggested that the uniqueness of the rationalizable outcomes coincides with the Nash equilibrium of the game. This paper proposes an empirical test of the existence of the uniqueness of the Nash equilibrium in a Cournot oligopoly. We focus on the U.S. airline industry and develop a theoretical model of competition on each route. It is assumed that airlines are not always able to predict perfectly the behavior of the competitors which can result in multiplicity of rationalizable outcomes. Based on the supply and demand ingredients of our model, we construct a stability criterion which guarantees uniqueness. We conclude that more than 90% of the local markets observed in the U.S. airline industry have reached the unique possible Nash equilibrium. As a by-product, we also identify the main determinants which prevent firms from reaching an equilibrium. We show in particular that local markets which include a higher number of competitors are the ones where the quantity produced is more volatile.
Monday 26 March 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
ELLISON Sara (MIT) : Regulatory Distortion: Evidence from Uber’s Entry Decisions in the US
Abstract
There is a large and long-standing literature on the distortionary effects of regulations on the functioning of markets. A newer strand of this literature focuses on licensing regulations, such as state-specific licensing of teachers and hairdressers. We seek to add to this literature with the specific case of ride-hailing services, such as Uber. We assemble a new and comprehensive data set of 250 US cities and their regulations regarding hackney services. We specify a stylized profit model for Uber, which is a function of these regulations, and estimate the parameters of the profit function using observed Uber entry decisions into these cities. Our data set and empirical strategy allow us to estimate the differential effects of particular types of regulations, separating out regulations governing safety, governing operations, and erecting entry barriers. We find that safety regulations do not have a distortionary effect on the functioning of the market for hackney services and evading them does not increase Uber’s profits. We find evidence that Uber’s profits are increased, however, by their ability to evade regulatory entry barriers and regulations governing operations. In other words, those regulations do have a significant distortionary effect on the market. To the extent that safety-related regulations are welfare-enhancing and those erecting entry barriers are welfare-decreasing, our results suggest a welfare-enhancing effect of Uber’s entry.
Monday 19 March 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
MILLOCK Katrin : Accelerating diffusion of climate-friendly technologies: a network perspective
MAYOL Alexandre (PSE, Université Paris 1 Panthéon-Sorbonne ) : Providing public utilities in a common agency framework: making, buying and governance
with Solmaria Halleck Vega and Antoine Mandel
Abstract
Abstract 1: We introduce a methodology to estimate the determinants of the formation of technology diffusion networks from the patterns of technology adoption. We apply this methodology to wind energy, which is one of the key technologies for climate change mitigation. Technology diffusion occurs at the firm level, but it is influenced by policy and we study how policy affects network formation at a country level. Our results emphasize that long-term economic and trade relationships, as measured in particular by economic integration, are key determinants of technological diffusion. Specific support measures seem less relevant for the diffusion per se, although they might play a crucial role from an industrial perspective. Abstract 2: This article analyzes how the local political organization (in France, the level of the single municipality, the union of communes (Syndicats) or supermunicipality (communaut de communes) and the management mode (public or private) can influence the performance of the public service. The impact of these organizational configurations on costs has never been studied simultaneously by the literature. We first propose a theoretical model based on a principal-agent problem to analyze them together. Then, from a panel of French water services, we observe empirically that these different organizational ombinations have an impact on the price.
Monday 5 March 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
IOSSA Elisabetta (University of Rome Tor Vergata) : Project Choice and Innovation Policy: the case for Public Procurement
with Alessandro De Chiara
Abstract
There is a long standing policy debate on the role and design of innovation policies. In this paper, we develop a model of project choice with competition for funding and compare: (i) A Demand-side approach, in which the public authority restricts the type of research project eligible for funding, with (ii) A Supply-side approach, in which the public authority chooses its preferred project among those submitted. The authority can verify the characteristics of the projects submitted by the firms, but does not know which other projects the firms have available. We compare the two approaches from the point of view of the authority and in terms of social welfare, considering both small projects which the firm could self-finance and larger projects which would not be implemented absent public funds. We identify under which conditions a Demand-side approach is preferable in terms of allocative efficiency and investment incentives.
Monday 19 February 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
CREPIN Anne-Sophie : Inertia in risk; improving economic models of catastrophes
Eric Nævdal
Abstract
We provide a new way to model endogenous catastrophic risk termed inertia risk, which accounts for dynamic lags between physical variables and the hazard rate—a characteristic which is often observed in real life problems. For example the stock of some particular species in an ecosystem might influence the level of stress (or resilience) in that system, which is a slowly changing variable compared to the species dynamics. When the level of stress passes a critical threshold the ecosystem undertakes a regime shift, a rapid, substantial and persistent change in the system. In such context the inertia hazard rate defines the risk that the system will shift in the next period of time, which depends on both variables. We show that the added realism in our risk model has intuitive appeal and significantly impacts optimal solutions. With inertia risk, the probability that a catastrophe will ever occur may span the entire interval [0, 1]. This as opposed to the standard approach where this probability is either zero or one. We also show how inertia risk may generate path dependency as the hazard rate depends on learning about how risk is distributed in state space. We illustrate the implications for policy in a simple model of climate change. The optimal solution with inertia depends on parameters, such as damage and discount rates in a qualitatively different way compared to the standard approach. Hence for problems with lagged effects, where inertia risk is a more realistic way to represent risk, using the standard models of catastrophic risk that discard these lagged effects could generate substantially flawed policy recommendations.
Monday 12 February 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
FODHA Mouez (Université Paris 1, PSE) : Environmental Tax Reform under debt constraint
COLO Philippe (PSE) : Uncertainty in environmental agreements
Abstract
This article analyzes the impacts of Environmental Tax Reform (ETR) when the government is constrained not to increase the public debt-to-output ratio. We consider an overlapping generations model with pollution. Public spending for pollution abatement are …nanced by tax revenues and public debt. We show that keeping constant the public debt-output ratio is not an obstacle to attain a double dividend, i.e. an increase of both (i) environmental quality and (ii) aggregate consumption. First, if the capital stock is low and the pollution abatement is large enough, a successful ETR consists in a rise of the environmental tax, compensated by a decrease of the income tax. Secondly, we show that the environmental tax revenues may help reduce the public debt-output ratio. We give conditions (on the initial level of the environmental tax and the debt-output ratio) such that an increase of the environmental tax, budget-balanced by a decrease of the debt-output ratio may also achieve a double dividend. We conclude that public debt crisis should not compromise ETR, instead, environmental tax revenues could be part of the solution.
Monday 5 February 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
BEZIN Emeline : The Economics of Green Consumption, Cultural Transmission and Sustainable Technological Change.
Abstract
A model shows that systematic interactions between green consumer culture and sustainable technologies can give rise to path dependency in sustainable innovation processes. The theory includes (i) green preferences formed through cultural transmission which involves rational socialization actions, (ii) innovation endogenously directed to sustainable or unsustainable sectors depending on culture through market size effects. When interactions between green culture and technology are strong enough, the dynamics exhibits complementarities resulting in path dependency. Two long-term outcomes emerge. A green equilibrium (with strong green culture and an environmentally benign technology), a brown equilibrium (with weak green culture and a pollution-intensive technology). The model has important implications for the cost of environmental policies. Moreover, the theory enables the study of an important disregarded issue, i.e., the political sustainability of environmental taxes.
Monday 22 January 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
LEGROS Patrick : Come Together Now — Firm Boundaries and Delegation
Monday 15 January 2018 12:00-14:00
DOUENNE THOMAS ( UNIVERSITÉ PARIS 1 PANTHÉON SORBONNE) ET Nunez Thais (Univ. d'Orléans) (PSE) : The vertical and horizontal distributive effects of energy taxes: A micro-simulation study of a French policy
Monday 8 January 2018 12:00-14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
COULOMB Renaud (University of Melbourne) : Rare Events and Risk Perception: Evidence from the Fukushima Accident
Yanos Zylberberg
Abstract
We study changes in nuclear-risk perception following the Fukushima nuclear accident of March 2011. Using an exhaustive registry of individual housing transactions in England and Wales between 2007 and 2014, we implement a difference-in-difference strategy and compare housing prices in at-risk areas to areas further away from nuclear sites before and after the Fukushima incident. We find a persistent price decrease of about 3.5% in response to the accident for properties in the neighbourhood of nuclear plants. As the UK immediately extended the life duration of most nuclear plants, the price decrease is primarily driven by a change in nuclear-risk perception. However, we find large heterogeneity among at-risk neighbourhoods, and we explore how such heterogeneity can relate to existing productive and consumptive amenities.
Wednesday 13 December 2017 12:30-14:00
Salle R2-21, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
MA Albert (Boston University) : Uterus at a Price: Disability Insurance and Hysterectomy
Abstract
Taiwanese Labor, Government Employee, and Farmer Insurance programs provide 5-6 months of salary to enrollees who undergo hysterectomy or oophorectomy before their 45th birthday. These programs result in more and earlier treatments, referred as, respectively, inducement and timing effects. Difference-indifference and nonparametric methods are used to estimate these effects on surgery hazards between 1997 and 2011. For Government Employee and Labor Insurance, inducement is 11-12% of all hysterectomies, and timing 20% of inducement. For oophorectomy, both effects are insignificant. Induced hysterectomies increase benefit payments and surgical costs, at about the cost of a mammogram and 5 pap smears per enrollee.
Monday 4 December 2017 12:00-14:00
Salle R1-15, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
SCHUMACHER Ingmar : Mitigation strategies when faced with the threat of solar radiation management
Monday 27 November 2017 12:00-14:00
Salle R2-01, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
CASSI Lorenzo (Université Paris 1, PSE) : Mergers and inventive activities in the pharmaceutical sector
with Carmine Ornaghi (University of Southampton)
Monday 20 November 2017 12:00-13:30
Salle R2-01, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
DUSO Tomaso (DIW (Berlin) ) : The Effect of Retail Mergers on Prices and Variety: An Ex-post Evaluation
Elena Argentesi, Paolo Buccirossi, Roberto Cervone, Alessia Marrazzo
Abstract
Astract We use an original dataset on Dutch supermarkets to assess the effect of a merger that was conditionally approved by the Dutch Competition Authority (ACM) on prices and on the depth of assortment. We adopt a difference-in-differences strategy that exploits local variation in the merger's effects and we further control for selection on observables when defining our control group. We find that the merger did not affect individual products' prices but it led the merging parties to reposition their assortment and increase average category prices. While the low-quality target stores reduced the depth of their assortment when in direct competition with the acquirer's stores, the latter increased their product variety. By analyzing the effect of the merger on category prices, we find that the target most likely dropped high price products, while the acquirer added more of them. These findings suggests that the merging firms reposition their product offerings in order to avoid cannibalization and lessen local competition. We further show that other dimensions of heterogeneity such as market concentration, whether a divestiture was imposed, and the re-branding strategy of the target stores are important to explain the post-merger dynamics. A simple theoretical model of local-market assortment competition explains most of our findings.
Monday 13 November 2017 12:00-14:00
Salle R2-01, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
DEMENTIEV Andrei (National Research University Higher School of Economics (Moscow)) : Contracting out public services to asymmetric partnerships
Abstract
ABSTRACT: The paper studies an organisational structure of contracting out public utilities to an asymmetric partnership between the local authorities and a vertically integrated firm. Being fiscally constrained and politically motivated the government delegates pricing decision in the downstream market to a partnership while the upstream market for essential input is not regulated directly. The accompanying regulatory instrument, namely the net budget transfer, is valued at the social cost of public funds and can be set ex post making the firm’s participation constraint non-binding. A negative budget transfer effectively extracts the firm’s rent in the non-regulated upstream market and depends on the corporate structure of the partnership. We build a formal model that predicts that local authorities with relatively high share in the partnership should decrease the net transfer when the profit margin in the downstream market falls. The empirical support for this finding is found in the panel data for 25 suburban passenger companies in Russia in 2011-2015. The effect of the share structure on the relationship between the compensation ratio and farebox ratio is captured by the interaction variable highlighting the nonlinear effect. The failure to fully compensate operational losses in the transportation market is interpreted as a system of pseudo-franchising contracts in the Russian suburban railway transport that, to some extent, reflects political preferences of the local authorities in the country.
Monday 6 November 2017 12:00-14:00
Salle R1-14, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
BOURGEON Jean-Marc : Green Technology Adoption and the Business Cycle
Margot Hovsepian
Abstract
Abstract : We analyze the adoption of green technology in a dynamic economy affected by random shocks where demand spillovers are the main driver of technological improvements. Firms' beliefs and consumers' anticipations drive the path of the economy. We derive the optimal policy of investment subsidy and the expected time and likelihood of reaching a targeted level of environmental quality under economic uncertainty. This allows us to estimate the value that should be given to the environment in order to avoid an environmental catastrophe as a function of the strength of spillover effects.
Monday 23 October 2017 12:00-13:30
Salle R2-01, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
WILLIAMS III Roberton (University of Maryland) : Unemployment and Environmental Regulation in General Equilibrium
Abstract
This presentation will cover two closely related papers. The first paper analyzes the effects of environmental policy on employment (and unemployment) using a new general-equilibrium two-sector search model. We find that imposing a pollution tax causes substantial reductions in employment in the regulated (polluting) industry, but this is offset by increased employment in the unregulated (nonpolluting) sector. Thus the policy causes a substantial shift in employment between industries, but the net effect on overall employment (and unemployment) is small, even in the short run. An environmental performance standard causes a substantially smaller sectoral shift in employment than the emissions tax, with roughly similar net effects. The effects on the unregulated industry suggest that empirical studies of environmental regulation that focus only on regulated firms can be misleading (and those that use nonregulated firms as controls for regulated firms will be even more misleading). This paper’s results also suggest that overall effects on employment are not a major issue for environmental policy, and that policymakers who want to minimize sectoral shifts in employment might prefer performance standards over environmental taxes.
Monday 16 October 2017 12:00-14:00
Salle R2-01, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
CHEN Stéphanie (University of Chicago) : Competitive Personalized Pricing with Sophisticated Consumers
Chongwoo Choe, Monash University
Abstract
Abstract Personalized pricing, a limiting case of price discrimination as the number of targeted consumer segments increases, becomes increasingly common due to the availability of vast amount of individual-level data. This paper studies personalized pricing in a Hotelling setting when each firm has a given target segment and consumers can be sophisticated. Sophisticated consumers can overcome the hurdles for price discrimination and have access to the price offered to non-targeted consumers, which naive consumers cannot. When all consumers are naive, personalized pricing leads to intense competition and total industry profit lower than that under the Hotelling equilibrium. But market is always fully covered. Sophisticated consumers raise the firm's cost of serving non-targeted consumers, hence discourage firms from poaching the rival's targeted customers. This softens competition. When firms have sufficiently large and non-overlapping target segments, consumer sophistication allows firms to extract full surplus from their targeted customers through perfect price discrimination. Consumers are strictly worse-off under competitive personalized pricing, a result in contrast to the common view in the literature. With sophisticated consumers, firms also choose not to serve the entire market when the commonly non-targeted market segment is small. Thus consumer sophistication can lead to lower consumer surplus and lower social welfare. We also discuss the implications for the regulation of the use of customer data by firms. Key words: Personalized pricing, consumer sophistication, customer targeting, privacy JEL Classification: D43, D8, L13, L5
Full text [pdf]
Monday 2 October 2017 12:00-14:00
Salle R2-01, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
FLECKINGER Pierre (Ecole des Mines - PSE) : The Incentive properties of collective reputation
FABRE Adrien (PSE) : French favored redistribution derived from surveys: A political assessment of optimal tax theory
Wanda Mimra, ETH Zürich, and Angelo Zago, University of Verona
Monday 25 September 2017 12:00-14:00
Salle R2-01, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
LISKI Matti (Aalto University) : Carbon leakage: a mechanism design approach
co-author: Lassi Ahlvik (NHH, Bergen)
Full text [pdf]
Monday 18 September 2017 12:00-14:00
Salle R1-14, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
TOEWS Gerhard (Oxcarré, Oxford University) : Resource discoveries and FDI bonanzas: An illustration from Mozambique
MAVI Can Askan (Univ. Paris I - PSE) : What can abrupt events tell us about sustainability ?
Pierre-Louis Vézina, King's College London
Full text [pdf]
Tuesday 13 June 2017 12:00-14:00
Salle R1-15, Nouveau Bâtiment, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
DAVIS Lucas (Haas Business School, UC Berkeley) : Do Energy Eciency Investments Deliver at the Right Time?
Judson Boomhower
Abstract
Abstract Electricity cannot be cost-eectively stored even for short periods of time. Consequently, wholesale electricity prices vary widely across hours of the day with peak prices frequently exceeding o-peak prices by a factor of ten or more. Most analyses of energy-eciency policies ignore this variation, focusing on total energy savings without regard to when those savings occur. In this paper we demonstrate the impor- tance of this distinction using novel evidence from a rebate program for air conditioners in Southern California. We estimate electricity savings using previously unavailable hourly \smart-meter data and show that savings tend to occur during hours when the value of electricity is high. This signicantly increases the overall value of the program, especially once we account for the large capacity payments received by generators to guarantee their availability in high-demand hours. We then com- pare this estimated savings prole with engineering-based estimates for this program as well as a variety of alternative energy-eciency invest- ments. The results illustrate a surprisingly large amount of variation in economic value across investments.
Full text [pdf]
Monday 29 May 2017 12:00-14:00
Salle R1-15, Nouveau Bâtiment, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
GAVAZZA Alessandro (London School of Economics) : *
Monday 22 May 2017 09:00-13:00
Salle R1-15, Campus Jourdan, 48 Boulevard Jourdan, 75014 paris
Journée interne du groupe Régulation et Environnement
Monday 15 May 2017 12:00-14:00
Salle R1-15, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
BERTHOD Mathias (PSE, Paris I) : A bargaining agreement between non-renewable resource producers: stability versus asymmetry
MAYOL Alexandre (PSE, Université Paris 1 Panthéon-Sorbonne ) : Tarifs discriminants et monopoles de l'eau potable: Analyse économique des tarifs progressifs dans l'eau potable française à partir d'une expérience naturelle
Abstract
Within a linear quadratic differential game framework with economic depletion inspired by Salo and Tahvonen (2001), we use recent results of Reddy and Engwerda (2013) to characterize a Pareto optimal bargaining agreement between two non-renewable resource producers. The main result is that incentive to cartelize will depend on the symmetry of the producers. In contrast to Salo and Tahvonen, we find that the concentration in supply could then increase over time while countries have more and more interest to bargain.
Monday 24 April 2017 12:00-14:00
Salle R1-15, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
TOEWS Gerhard (Oxcarré, Oxford University) : Creative Destruction vs Destructive Destruction: A Schumpeterian Approach for Environmental Policy
ALTAGHLIBI Moutaz (PSE, Paris I, Dynamic Border Carbon Adjustment to Enhance Green Growth) : Dynamic Border Carbon Adjustment to Enhance Green Growth
Abstract
This article aims to show how a market exposed to catastrophic events finds the equilibrium level of adaptation and mitigation policies through R&D policy, with respect to different levels of Poisson probability of catastrophe. We study the effect of a pollution tax on the long-run growth rate and the implications of catastrophe probability on this effect. Our results suggest that the economy increases its R&D level with a higher catastrophe probability only if the penalty rate due to an abrupt event is sufficiently high. We also show that a pollution tax could increase the long-run growth. Besides, the catastrophe probability increases the amplitude of this positive effect if penalty rate is high enough. The market makes adaptation much more than mitigation with a higher catastrophe probability if total productivity of R&D is higher than cleanliness of innovations for intermediate goods. Lastly, we show that pollution growth could be higher with less polluting inputs, which we call a Jevons-type paradox. Abstract : This paper analyzes the growth and welfare impacts of Border Carbon Adjustments (BCA) across trading countries. I build a trade model with monopolistic competition and dynamic investment decisions using Ramsey growth model. The government in each country can invest either in green nonpolluting or in brown polluting capital. I solve numerically for an open loop Nash equilibrium to study different configurations of BCAs across countries. I find that a unilateral BCA is welfare enhancing for the country that applies it and an effective tool to shift the growth of the other country towards greener path even when countries are not concerned about the environment. In a case of a BCA war, results show that a bilateral BCA becomes welfare enhancing for both countries if governments care sufficiently about the environmental quality of their consumers. Moreover, the asymmetry in initial development levels across countries induces a slower growth for the initially poorer country only if the other country is richer in brown capital. Furthermore, the model shows that trade openness should be done gradually along the development path of countries.
Monday 27 March 2017 12:00-14:00
Salle R1-15, Nouveau Bâtiment, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
PLANTINGA Andrew (Bren School of Environmental Science and Management - UC Santa Barbara) : Salience and the Government Provision of Public Goods
Matthew Wibbenmeyer et Sarah Anderson
Abstract
This paper examines the consequences of salience for the government provision of public goods. Salience is a common behavioral bias whereby people's attention is drawn to salient features of a decision problem, leading them to overweight prominent information in subsequent judgments. We analyze the case in which the public's demand for the good is distorted by salient events, and explore how salience influences public good allocation and efficiency. Theoretical predictions regarding public good allocation are ambiguous and depend on the magnitude of the change in payoffs and the extent of salience effects. We test whether salience increases or decreases allocation of government projects to reduce wildfire severity near wildland-adjacent communities. Even though the occurrence of a wildfire likely reduces the severity of future fires in the same area, it may increase the likelihood that fuels management projects are placed nearby if wildfire events strongly increase the salience of losses under future fires. We find strong evidence that the salience eects increase the likelihood of fuels management projects, and use robustness checks to eliminate competing explanations for our results. Our salience framework may also offer insights into government responses to terrorism, natural disasters, disease outbreaks, and environmental catastrophes.
Tuesday 21 March 2017 12:00-14:00
Salle R1-15, Nouveau Bâtiment, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
ITO Koichiro (University of Chicago) : Information Frictions, Inertia, and Selection on Elasticity: A Field Experiment on Electricity Tariff Choice
Monday 13 March 2017 12:00-14:00
Salle R2-20, Nouveau Bâtiment, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
GAUTHIER Stéphane : Profit taxation and production efficiency
BEZIN Emeline
Guy Laroque (Sciences-Po, University College London and Institute for Fiscal Studies)
Abstract
Stéphane Gauthier: Profit taxation and production efficiency. Ecrit avec Guy Laroque (Sciences-Po, University College London and Institute for Fiscal Studies). Emeline Bezin: An economic theory of green consumer culture and sustainable technological change
Monday 6 March 2017 12:00-14:00
Salle 8, RDC Bâtiment G, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
ARMSTRONG Mark (University of Oxford) : Ordered Consumer Search
Full text [pdf]
Monday 27 February 2017 12:00-14:00
Salle 8, RDC Bâtiment G, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
JULLIEN Bruno (Toulouse School of Economics) : Privacy Protection
Yassine Lefouili et Michael Riordan
Abstract
We study the incentives of a website to sell its customers? personal information. Third parties buying that information can either benefi?t or harm consumers, who learn about their vulnerability to unwanted intrusions through experience. The cost to the website of selling the information is the risk that bad experience may cause consumers to end their relationship with the website. The measures adopted by the website to mitigate that cost are neither contractible nor discernible by consumers. Nevertheless, in equilibrium, the website has incentives to be cautious about selling information or spend resources to screen third parties. We characterize the equilibrium privacy policy of the website and its welfare properties, and discuss the difficulty of welfare-improving regulations.
Monday 20 February 2017 12:00-14:00
Salle 8, RDC Bâtiment G, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
SECCHI Angelo (PSE - Université Paris 1) : Volatility of growth: size matters
CHABROST Marion
Abstract
SECCHI Angelo: Volatility of growth: size matters. CHABROST Marion: “Get what you pay for” - The story underneath remunicipalization in the water sector. Co-écrit avec Stéphane Saussier et Simon Porcher.
Monday 30 January 2017 12:00-14:00
Salle 8, RDC Bâtiment G, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
PITTEL Karen (IFO, Münich) : Thinking Local but Acting Global? The Interplay Between Local and Global Internalization of Externalities
Abstract
The paper analyzes the long-run development of local and global pollution when two types of abatement activities can be undertaken. One type reduces solely local pollution (e.g., use of particulate matter filters) while the other mitigates global pollution as well (e.g., application of fuel saving technologies). In the framework of a 2-country endogenous growth model, the implications of different degrees to which global externality is internalized are analyzed. We focus especially on local and global pollution levels and the effects on growth in both countries. Furthermore we derive implications for optimal policies in the different scenarios.
Monday 23 January 2017 12:00-14:00
Salle 10, RDC Bâtiment G, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
CANTILLON Estelle (Université Libre de Bruxelles) : Price formation in the European carbon market: The role of firm participation and risk management practices
Aurélie Slechten, Lancaster Business School
Abstract
A key argument in favor of emissions markets (relative to command-and-control types of regulation) is their ability to aggregate dispersed information about abatement costs and emissions and generate price signals to guide firms' trading and abatement decisions. We exploit trading data from the first phase of the EU emissions trading scheme (EU ETS) to assess the extent to which this market was indeed able to deliver such price signals. We know who traded, when, with whom, on which platform if any, and at what price. Participation was partial, trading patterns differed across categories of market participants and the market was fragmented. We build a model of trading and information aggregation that integrates the salient features of the market and use it to explore their impact on the price formation process. Risk management practices and partial participation help account for some of the price anomalies that have been identified in the past on the basis of the analysis of price time series only.
Monday 16 January 2017 12:30-14:00
MARTIMORT David (PjSE) : *
TOULEMON Léa
Abstract
David MARTIMORT: Towards a Theory of the Precautionary Principle, joint with Louise Guillouet (Columbia) -- Lea TOULEMON: Regional Purchasing Groups and Hospital Medicine Prices: Evidence from Group Creations
Monday 5 December 2016 12:30-14:00
DI FALCO Salvatore (GSEM) : Mother of Invention: the Emergence of the Reluctant Entrepreneur in Rural Ethiopia
Monday 28 November 2016 12:30-14:00
VARIAN Hal (Google, Berkeley) : Use and Abuse of Network Effects
Abstract
The term ``network effects'' has a clear meaning in the context of economic models, but it is sometimes confused with other concepts like increasing returns to scale and learning-by-doing. This essay is an attempt to clear up some of this confusion.
Monday 21 November 2016 12:30-14:00
HERRERA ARAUJO Daniel (PSE) : Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior
HENRIET Fanny (PSE) : A Decomposition of Fuel Taxes
Jorge Florez, Universidad del Rosario / Stéphane Gauthier
Abstract
Daniel Herrera Araujo : Multiproduct retailing and buyer power: The effects of product delisting on consumer shopping behavior (joint with Jorge Florez, Universidad del Rosario) Fanny Henriet: A Decomposition of Fuel Taxes (joint with Stéphane Gauthier)
Monday 14 November 2016 12:30-14:00
LAURENT-LUCCHETTI Jérémy (Université de Genève) : Property Rights and Land Disputes: Theory and Evidence from Ethiopia
Salvatore Di Falco, Marcella Veronesi et Gunnar Kohlin
Full text [pdf]
Monday 7 November 2016 12:30-14:00
LINNEMER Laurent (CREST) : Partial Exclusivity
Philippe Choné et Thibaud Vergé
Monday 17 October 2016 12:30-14:00
CHIROLEU-ASSOULINE Mireille (Université Paris 1, Panthéon Sorbonne - Paris School of Economics) : *
MARCHI-ADANI Riccardo (University of Verona) :
Paola Valbonesi
Abstract
Mireille Chiroleu-Assouline: Merchants of Doubt: Corporate Political Influence when Expert Credibility is Uncertain
Riccardo Marchi-Adani: Favoritism in scoring rule auctions:an empirical investigation on Italian public procurement for canteens
Full text [pdf]
Monday 10 October 2016 12:30-14:00
Campus Jourdan, bâtiment G, rez-de-chaussée, salle 10
DECHEZLEPRETRE Antoine (Grantham Research Institute, London School of Economics) : Do Pollution Offsets Offset Pollution? Evidence from the Clean Development Mechanism in India
Abstract
We provide the first large-scale empirical evaluation of the additionality of the Kyoto Protocol’s Clean Development Mechanism, the largest carbon emissions offset mechanism in the world, based on the universe of wind power projects implemented in India during the period 1993-2013. We deal with the self-selection of project developers into the CDM by comparing CDM projects with non-CDM projects, which are by definition not additional. We find strong evidence that the majority of CDM projects are not additional, suggesting that a large share of CDM carbon credits does not represent real emission reductions. Furthermore, the more profitable projects are, the more likely they are to receive carbon credits. Hence, the CDM is doing the opposite of its objective function, i.e. supporting projects that would have existed anyway rather than inframarginal projects.
Monday 3 October 2016 12:30-14:00
BELLEFLAMME Paul (Université catholique de Louvain) : Tax Incidence on Competing Two-Sided Platforms: Lucky Break or Double Jeopardy
Eric Toulemonde
Full text [pdf]
Monday 19 September 2016 12:00-14:00
Campus Jourdan, bâtiment G, rez-de-chaussée, salle 10
NUNEZ ROCHA Thais (Université Paris 1, Panthéon Sorbonne - Paris School of Economics) : Legislation versus Treaties: the effect on environmental outcomes in an open economy and On the Pro-Competitive Effects of Vertical Mergers in Two-Sided Markets
POUYET Jérôme (CNRS – PSE)
Inmaculada Martinez-Zarzoso