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Claude Crampes et Michel Moreaux
n° 16-641, avril 2016
Jean-Paul Azam
n° 16-642, avril 2016
This paper shows that neither OLS nor 2SLS can generically identify policy trade offs in the linear case, except under extreme assumptions. Practitioners have to be content with near identification and the paper discusses how to choose between these two methods. It shows that a two-stage approach...
Christiern Rose
n° 16-643, avril 2016
Retail prices of illicit drugs have fallen despite rising supply disruption. This article presents and empirically tests a model which may explain the price puzzle. Supply disruption increases the cost of purity. Illicit drugs are experience goods, with demand depending on the seller’s purity...
Hélène Juillard, Guillaume Chauvet et Anne Ruiz-Gazen
n° 16-659, avril 2016
The cross-classified sampling design consists in drawing samples from a twodimension population, independently in each dimension. Such design is commonly used in consumer price index surveys and has been recently applied to draw a sample of babies in the French Longitudinal Survey on Childhood, by...
Donghoon Lee, Tim Lee et Yongseok Shin
avril 2016
Going to college is a risky investment in human capital. However, two options inherently embedded in college education mitigate this risk: (i) college students can quit without completing four-year degrees after learning about their post-graduation wages and (ii) college graduates can take jobs...
Roland Bénabou et Jean Tirole
vol. 124, n° 2, avril 2016, p. 305–370
To analyze the impact of labor market competition on the structure of compensation, we embed multitasking and screening within a Hotelling framework. Competition for talent leads to an escalation of performance pay, shifting effort away from long-term investments, risk management, and cooperation....
Sophie Moinas et Sébastien Pouget
vol. 82, n° 4, avril 2016, p. 1402–1412
We propose a simple classroom experiment on speculative bubbles: the Bubble Game. This game is useful to discuss about market efficiency and trading strategies in a financial economics course, and about behavioral aspects in a game theory course, at all levels. The Bubble Game can be played with...
Baptiste Massenot et Stéphane Straub
vol. 54, n° 2, avril 2016, p. 1046–1067
A standard view holds that removing barriers to entry and improving judicial enforcement would reduce informality and boost investment and growth. We show, however, that this conclusion may not hold in countries with a concentrated bank- ing sector or with low financial openness. When the formal...
Roberta Dessi et Salvatore Piccolo
vol. 83, avril 2016, p. 90–110
We develop a theory of the emergence of merchant guilds as an efficient mechanism to foster cooperation between merchants and rulers, building on the complementarity between merchant guilds’ ability to enforce monopoly over trade and their social capital. Unlike existing models, we focus on local...
C. Liquete, N. Cid, Denis Lanzanova, Bruna Grizzetti et Arnaud Reynaud
vol. 63, avril 2016, p. 249–257
The relationship between biodiversity and each ecosystem service or bundle of ecosystem services (e.g. win−win, win−lose or win−neutral) is an active field of research that requires structured and consistent information. The application of that research for conservation and decision-making can be...
