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Bruno Biais, Jean-Charles Rochet et Stéphane Villeneuve
n° 25-1643, mai 2025
In our dynamic general equilibrium model, agents can invest in money and in a production technology exposed to shocks. If the government is non-benevolent and has a monopoly over money issuance it issues too much money, to finance excessive public expenditures. We study the effects of a...
Bruno Biais, Hans Gersbach, Jean-Charles Rochet, Ernst-Ludwig von Thadden et Stéphane Villeneuve
n° 25-1642, mai 2025
We analyze dynamic capital allocation and risk sharing between a principal and many agents, who privately observe their output. The state variables of the mechanism design problem are aggregate capital and the distribution of continuation utilities across agents. This gives rise to a Bellman...
François Bachoc, Jérôme Bolte, Ryan Boustany et Jean-Michel Loubes
n° 25-1641, mai 2025
Despite growing empirical evidence of bias amplification in machine learning, its theoretical foundations remain poorly understood. We develop a formal framework for majority-minority learning tasks, showing how standard training can favor majority groups and produce stereotypical predictors that...
Jean-Pierre Florens, Frédérique Fève et Léopold Simar
n° 25-1640, mai 2025
The analysis of cost functions is an important topic in econometrics both for scientific studies and for industrial applications. The object of interest may be the cost of a firm or the cost of a specific production, in particular in case of a proposal to a procurement. Engineer methods evaluate...
Jean-Paul Décamps, Fabien Gensbittel et Thomas Mariotti
vol. 50, n° 2, mai 2025, p. 1478–1513
We study the optimal investment policy of a firm facing both technological and cash-flow uncertainty. At any point in time, the firm can decide to invest in a standalone technology or to wait for a technological breakthrough. Breakthroughs occur when market conditions become favorable enough,...
Sarah Ann Wheeler, Céline Nauges et Quentin R. Grafton
vol. 47, n° 2, mai 2025, p. 487–514
The allocation of water across space and time is a key challenge of water governance, with demand and supply often not well matched over time and place. Best practice water pricing and markets may promote water conservation, yet their application is limited. We highlight the governance principles...
Daniel L. Chen et Susan Yeh
vol. 128, n° 103155, mai 2025
Does obscenity law affect moral values and does it matter? Using random judge assignment and all U.S. obscenity precedents since 1958, we report four key findings. Democratic judges, more than Republicans, tended to vote progressively in obscenity cases. Such progressive rulings liberalized sexual...
Elena Panova et Thibault Laurent
mai 2025
This paper examines how the structure of communication networks influences learning and social welfare when participants have different prior opinions and face uncertainty about an external state. We analyze a game in which players form links to exchange opinions on the state and reduce their...
Jad Beyhum, Elia Lapenta et Pascal Lavergne
vol. 28, n° 2, mai 2025, p. 176–197
We extend nonparametric regression smoothing splines to a context where there is endogeneity and instrumental variables are available. Unlike popular existing estimators, the resulting estimator is one-step and relies on a unique regularization parameter. We derive rates of the convergence for the...
David Bardey et Philippe De Donder
Toronto, vol. 58, n° 2, mai 2025, p. 443–483
Personalized medicine is still in its infancy, with costly genetic tests providing little actionable information in terms of efficient prevention decisions. As a consequence, few people undertake these tests currently, and health insurance contracts pool all agents irrespective of their genetic...
