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9 août 2012
Christian Gollier
juillet 2012, révision octobre 2012
There is still much confusion about which discount rates should be used to evaluate actions having long-lasting impacts, as in the contexts of climate change, social security reforms or large public infrastructures for example. Contrary to the existing literature that focuses on the discount rate...
Hippolyte D'Albis et Emmanuel Thibault
n° 12-323, juillet 2012
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...
Emmanuel Farhi et Jean Tirole
n° 12-328, juillet 2012, révision octobre 2013
The paper revisits and qualifies existing insights on security design. A rich literature argues that tranching creates debt-like instruments that are robust to adverse selection or discourage wasteful information acquisition. Yet, for a given information structure, while tranching confines and...
Thomas Chaney et Ralph Ossa
juillet 2012
We generalize Krugman's (1979) "new trade"model by allowing for an explicit production chain in which a range of tasks is performed sequentially by a number of specialized teams. We demonstrate that an increase in market size induces a deeper division of labor among these teams which leads to an...
Yinghua He, Ulf Nielsson, Hong Guo et Jiong Yang
n° 12-351, juillet 2012, révision novembre 2013
The paper empirically explores how more trade transparency affects market liquidity. The analysis takes advantage of a unique setting in which the Shanghai Stock Exchange offered more trade transparency to market participants subscribing to a new software package. First, the results show that the...
Sylvain Chabé-Ferret et Julie Subervie
n° 12-357, juillet 2012
Agro-environmental schemes (AES), which pay farmers to adopt greener practices, are increasingly important components of environmental and agricultural policies both in the US and the EU. Here we study the French implementation of the EU AES program. We estimate additional and windfall effects of...
Jean-François Brocard et Michel Cavagnac
n° 13-391, juillet 2012, révision novembre 2016
We study the effects of completing the legal framework of matchmakers with a rule designating which party must pay the commission. The paper examines the two rules currently open to debate at the international level in sport: the "player-pays" principle and the "club-pays" principle. We find that...
Ben Handel, Igal Hendel et Michael Whinston
This paper studies equilibrium and welfare in a class of regulated health insurance markets known as exchanges. We use detailed health plan choice and utilization data to model individual-level (i) projected health risk and (ii) risk preferences. We combine these micro-foundations with a model of...
Daron Acemoglu, Ufuk Akcigit, Nicholas Bloom et William R. Kerr
We build a model of firm-level innovation, productivity growth and reallocation featuringendogenous entry and exit. A key feature is the selection between high- and low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using detailed US Census...
