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Bruno Biais et Richard Green
n° 18-960, octobre 2018
Bonds are traded in opaque and fragmented over-the-counter markets. Is there some- thing special about bonds precluding transparent limit-order markets? Historical experience suggests this is not the case. Before WWII, there was an active market in corporate and municipal bonds on the NYSE....
T.H.A Nguyen, Thibault Laurent, Christine Thomas-Agnan et Anne Ruiz-Gazen
n° 18-961, octobre 2018
The proportions of votes by party on a given subdivision of a territory form a vector called composition (mathematically, a vector belonging to a simplex). It is interesting to model these proportions and study the impact of the characteristics of the territorial units on the outcome of the...
Philippe Bontems et Marie-Françoise Calmette
n° 18-966, octobre 2018
In this article, we propose a new way of assessing environmental responsibility at the country level, taking into account their trade balance in terms of carbon. Starting from the fact that the approach based on the respective responsibilities of the producer and the consumer, which are widely...
Frédéric Cherbonnier et Christian Gollier
n° 18-972, octobre 2018, révision décembre 2020
When evaluating public and private investment projects, those that contribute more to the collective risk should be more penalized through an upward adjustment of their discount rate. This paper shows how to estimate the risk-adjusted discount rate for different projects, with applications to the...
Hunt Allcott, Matthew Gentzkow et Chuan Yu
octobre 2018
In recent years, there has been widespread concern that misinformation on social media is damaging societies and democratic institutions. In response, social media platforms have announced actions to limit the spread of false content. We measure trends in the diffusion of content from 570 fake news...
Carole Bernard, Christoph Rheinberger et Nicolas Treich
vol. 64, n° 10, octobre 2018, p. 4471–4965
Catastrophe aversion and risk equity are important concepts in both risk management theory and practice. Keeney (1980) was the first to formally define these concepts. He demonstrated that the two concepts are always in conflict. Yet this result is based on the assumption that individual risks are...
Aurélie Ouss et Arnaud Philippe
vol. 126, n° 5, octobre 2018, p. 2134–2178
We explore how television broadcasting of unrelated criminal justice events affects sentencing. Exploiting as-good-as-random variation in news content before a verdict, we find that sentences are 3 months longer when the verdict is reached after coverage of crime. Sentence increase with media...
Hippolyte D'Albis et Emmanuel Thibault
vol. 85, n° 3-4, octobre 2018, p. 303–319
In this paper, ambiguity aversion to uncertain survival probabilities is introduced in a life-cycle model with a bequest motive to study the optimal demand for annuities. Provided that annuities return is sufficiently large, and notably when it is fair, positive annuitization is known to be the...
Adrien Blanchet et Jérôme Bolte
vol. 25, n° 7, octobre 2018, p. 1650–1673
For displacement convex functionals in the probability space equipped with the Monge-Kantorovich metric we prove the equivalence between the gradient and functional type Łojasiewicz inequalities. We also discuss the more general case of λ-convex functions and we provide a general convergence...
Matthieu Bouvard et Raphaël Lévy
vol. 64, n° 10, octobre 2018, p. 4755–4774
In a market where sellers solicit certification to overcome asymmetric infor-mation, we show that the profit of a monopolistic certifier can be hump-shaped in itsreputation for accuracy: a higher accuracy attracts high-quality sellers but sometimesrepels low-quality sellers. As a consequence,...
