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Jay Pil Choi, Doh-Shin Jeon et Byung-Cheol Kim
n° 17-887, janvier 2018, révision janvier 2019
We provide a theoretical model of privacy in which data collection requires consumers’ consent and consumers are fully aware of the consequences of such consent. Nonetheless, excessive collection of personal information arises in the monopoly market equilibrium which results in excessive loss of...
Hans Gersbach, Jean-Charles Rochet et Martin Scheffel
n° 881, janvier 2018
This paper integrates banks into a two-sector neoclassical growth model to account for the fact that a fraction of firms relies on banks to finance their investments. There are four major contributions to the literature: First, although banks’ leverage amplifies shocks, the endogenous response of...
Daron Acemoglu et Pascual Restrepo
janvier 2018
We summarize a framework for the study of the implications of automation and AI on the demand for labor, wages, and employment. Our task-based framework emphasizes the displacement effect that automation creates as machines and AI replace labor in tasks that it used to perform. This isplacement...
H. Mete Soner, Max Reppen et Jean-Charles Rochet
n° 882, janvier 2018
We study an optimal dividend problem under a bankruptcy constraint. Firms face a trade-off between potential bankruptcy and extraction of profits. In contrast to previous works, general cash flow drifts, including Ornstein–Uhlenbeck and CIR processes, are considered. We provide rigorous proofs of...
Pierre Dubois, Rachel Griffith et Martin O'Connell
vol. 1, n° 1, janvier 2018, p. 396–436
There are growing calls to restrict advertising of junk foods. Whether such a move will improve diet quality will depend on how advertising shifts consumer demands and how firms respond. We study an important and typical junk food market { the potato chips market. We exploit consumer level exposure...
Dana Galizia, Franck Portier et Paul Beaudry
vol. 85, n° 1, janvier 2018, p. 119–156
Recessions often happen after periods of rapid accumulation of houses, consumer durables and business capital. This observation has led some economists, most notably Friedrich Hayek, to conclude that recessions often reflect periods of needed liquidation resulting from past over-investment....
Renato Gomes, Jean-Marie Lozachmeur et Alessandro Pavan
vol. 85, n° 1, janvier 2018, p. 511–557
We develop a framework to study optimal sector-specific taxation, where each agent chooses an occupation by comparing her skill differential with the tax burden differential across sectors. Because skills are not perfectly transferable, the Diamond-Mirrlees theorem (according to which the second-...
Christophe Lévêque et Mohamed Saleh
vol. 67, janvier 2018, p. 40–61
We investigate the impact of state industrialization on residential segregation between Muslims and non-Muslims in nineteenth-century Cairo using individual-level census samples from 1848 and1868. We measure local segregation by a simple inter-group isolation index, where Muslims' (non-Muslims')...
James K. Hammitt et Daniel Herrera-Araujo
vol. 87, janvier 2018, p. 165–189
We develop validity tests for application to stated-preference estimates of WTP to reduce mortality risk, i.e., value per statistical life (VSL), and apply these to data obtained by surveying a representative sample of French adults over the internet. These tests (WTP nearly proportional to risk...
M.G Shrime, M.C. Weinstein, James K. Hammitt, Jessica Cohen et Joshua Salomon
vol. 21, n° 1, janvier 2018, p. 95–104
Although nearly two-third of bankruptcy in the United States is medical in origin, a common assumption is that individuals facing a potentially lethal disease opt for cure at any cost. This assumption has never been tested, and knowledge of how the American population values a trade-off between...
