Fabrice Collard, Michel Habib and Jean-Charles Rochet have been awarded the 2019 Maurice Allais Economics Prize for their article published in the Journal of European Economic Association.
Fabrice Collard, CNRS Research Director (Toulouse School of Economics), Michel Habib, Professor (University of Zurich, Department of Banking and Finance) and Jean-Charles Rochet, Professor (University of Geneva, Geneva Finance Research Institute & Associate Researcher at TSE), for their article entitled "Sovereign Debt Sustainability in Advanced Economies", published in 2015 in the Journal of the European Economic Association
In their paper, the authors propose a model that presents major advances in Economic Policy. In particular, it provides a model for assessing a country's maximum sustainable debt-to-GDP ratio, but also for calculating a theoretical probability of default for each country.
Awarded every two years by the Maurice Allais Foundation, the Maurice Allais Prize aims to encourage research in economics conducted along the lines outlined by Maurice Allais and respecting his scientific methodology: a permanent confrontation of theories with the observed facts, without any connection whatsoever with any ideology whatsoever.