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183 results on '"Center of Operation Research and Econometrics [Louvain] (CORE)"'

1. The prosumers and the grid

Author: Axel Gautier, Julien Jacqmin, Jean-Christophe Poudou, Montpellier Recherche en Economie ( MRE ), Université de Montpellier ( UM ), Center of Operation Research and Econometrics [Louvain] ( CORE ), Université Catholique de Louvain ( UCL ), HEC-University of Liège, Department of Economics, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Montpellier Recherche en Economie (MRE), Université de Montpellier (UM), Labex Entreprendre, and UCL - SSH/IMMAQ/CORE - Center for operations research and econometrics
Subjects: Economics and Econometrics, Solar panel, 020209 energy, decentralized production unit, grid regulation, solar panel, Storage, 02 engineering and technology, 7. Clean energy, Microeconomics, storage, Grid tariff, 0502 economics and business, 0202 electrical engineering, electronic engineering, information engineering, Grid-connected photovoltaic power system, Production (economics), [ SHS.ECO ] Humanities and Social Sciences/Economies and finances, Metering mode, 050207 economics, Industrial organization, Grid regulation, ComputingMilieux_MISCELLANEOUS, Consumption (economics), Decentralized production unit, 050208 finance, business.industry, JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q4 - Energy/Q.Q4.Q42 - Alternative Energy Sources, JEL: L - Industrial Organization/L.L5 - Regulation and Industrial Policy/L.L5.L51 - Economics of Regulation, 05 social sciences, JEL: L - Industrial Organization/L.L9 - Industry Studies: Transportation and Utilities/L.L9.L94 - Electric Utilities, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Net metering, Purchasing, grid tariff, JEL: D - Microeconomics/D.D1 - Household Behavior and Family Economics/D.D1.D13 - Household Production and Intrahousehold Allocation, Business, Electricity, Prosumer
Abstract: International audience; Prosumers are households that are both producers and consumers of electricity. A prosumer has a grid-connected decentralized production unit and makes two types of exchanges with the grid: energy imports when the local production is insufficient to match the local consumption and energy exports when local production exceeds it. There exists two systems to measure the exchanges: a net metering system that uses a single meter to measure the balance between exports and imports and a net purchasing system that uses two meters to measure separately power exports and imports. Both systems are currently used for residential consumption.We build a model to compare the two metering systems. Under net metering, the price of exports paid to prosumers is implicitly set at the price of the electricity that they import. We show that net metering leads to (1) too many prosumers, (2) a decrease in the bills of prosumers, compensated via a higher bill for traditional consumers, and (3) a lack of incentives to synchronize local production and consumption.
Published: 2018
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2. Coordination on networks with farsighted and myopic agents

Author: Mauleon, Ana, Schopohl, Simon, Taalaibekova, Akylai, Vannetelbosch, Vincent, UCL - SSH/LIDAM/CORE - Center for operations research and econometrics, USL-B - Centre de recherche en Economie (CEREC), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Centre d'économie de la Sorbonne (CES), Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS), Ana Mauleon and Vincent Vannetelbosch are, respectively, Research Director and Senior Research Associate of the National Fund for Scientific Research (FNRS). Financial support from the MSCA ITN Expectations and Social Influence Dynamics in Economics (ExSIDE) Grant no 721846 (1/9/2017–31/8/2020), from the Belgian French speaking community ARC project 15/20-072 of Saint-Louis University - Brussels, and from the Fonds de la Recherche Scientifique—FNRS research grant T.0143.18 is gratefully acknowledged., and European Project: 721846,Marie Skłodowska-Curie Actions (MSCA) in Horizon 2020,H2020-MSCA-ITN-2016/H2020-MSCA-ITN-2016,ExSIDE(2017)
Subjects: JEL: A - General Economics and Teaching/A.A1 - General Economics/A.A1.A14 - Sociology of Economics, Statistics and Probability, Economics and Econometrics, Stubborn players, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Farsighted players, Coordination problems, Mathematics (miscellaneous), Networks, Statistics, Probability and Uncertainty, JEL: D - Microeconomics/D.D2 - Production and Organizations/D.D2.D20 - General, Stability, JEL: C - Mathematical and Quantitative Methods/C.C7 - Game Theory and Bargaining Theory/C.C7.C70 - General, Social Sciences (miscellaneous)
Abstract: We study a coordination game on a fixed connected network where players have to choose between two projects. Some players are moderate (i.e. they are ex-ante indifferent between both projects) while others are stubborn (i.e. they always choose the same project). Benefits for moderate players are increasing in the number of neighbors who choose the same project. In addition, players are either farsighted or myopic. Farsighted players anticipate the reactions of others while myopic players do not. We show that, when all players are farsighted, full coordination among the moderate players is reached except if there are stubborn players for both projects. When the population is mixed, the set of stable strategy profiles is a refinement of the set of Nash equilibrium strategy profiles. In fact, turning myopic players into farsighted ones eliminates gradually the inefficient Nash equilibria. Finally, we consider a social planner who can improve coordination by means of two policy instruments: adding links to the network (socialization) and/or turning myopic players into farsighted ones (education).
Published: 2022
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3. Counting the Missing Poor in Preindustrial societies

Author: Lefebvre, Mathieu, Pestieau, Pierre, Ponthiere, Gregory, UCL - SSH/ISP - Institut supérieur de philosophie, Aix-Marseille Sciences Economiques (AMSE), École des hautes études en sciences sociales (EHESS)-Aix Marseille Université (AMU)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS), Université de Liège, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Paris School of Economics (PSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Paris Jourdan Sciences Economiques (PJSE), This work was supported by the French National Research Agency Grant ANR-17-EURE-0020, and by the Excellence Initiative of Aix-Marseille University—A*MIDEX., ANR-17-EURE-0020,AMSE (EUR),Aix-Marseille School of Economics(2017), and ANR-11-IDEX-0001,Amidex,INITIATIVE D'EXCELLENCE AIX MARSEILLE UNIVERSITE(2011)
Subjects: Measurement, Economics and Econometrics, History, ACL-2 / A, poverty, missing poor, Selection effects, Missing poor, longevity inequality, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, mortality, JEL: N - Economic History/N.N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy/N.N3.N33 - Europe: Pre-1913, JEL: I - Health, Education, and Welfare/I.I3 - Welfare, Well-Being, and Poverty/I.I3.I32 - Measurement and Analysis of Poverty, measurement, Poverty
Abstract: International audience; Under income-differentiated mortality, poverty measures suffer from a selection bias: they do not count the missing poor (i.e., persons who would have been counted as poor provided they did not die prematurely). The Pre-Industrial period being characterized by an evolutionary advantage (i.e., a higher number of surviving children per household) of the non-poor over the poor, one may expect that the missing poor bias is substantial during that period. This paper quantifies the missing poor bias in Pre-Industrial societies, by computing the hypothetical headcount poverty rates that would have prevailed provided the non-poor did not benefit from an evolutionary advantage over the poor. Using data on Pre-Industrial England and France, we show that the sign and size of the missing poor bias are sensitive to the degree of downward social mobility.
Published: 2023
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4. Reforming the Postal Universal Service

Author: Axel Gautier, Jean-Christophe Poudou, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Laboratoire Montpelliérain d'Économie Théorique et Appliquée (LAMETA), Université Montpellier 1 (UM1)-Université Paul-Valéry - Montpellier 3 (UPVM)-Institut National de la Recherche Agronomique (INRA)-Centre international d'études supérieures en sciences agronomiques (Montpellier SupAgro)-Université de Montpellier (UM)-Centre National de la Recherche Scientifique (CNRS)-Institut national d’études supérieures agronomiques de Montpellier (Montpellier SupAgro), Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement (Institut Agro)-Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement (Institut Agro), Labex Entreprendre, Université de Montpellier (UM), Université Catholique de Louvain (UCL), Université Montpellier 1 (UM1)-Université Paul-Valéry - Montpellier 3 (UM3)-Institut National de la Recherche Agronomique (INRA)-Centre international d'études supérieures en sciences agronomiques (Montpellier SupAgro)-Université de Montpellier (UM)-Centre National de la Recherche Scientifique (CNRS)-Institut national d’études supérieures agronomiques de Montpellier (Montpellier SupAgro), Center of Operation Research and Econometrics [Louvain] ( CORE ), Université Catholique de Louvain ( UCL ), Laboratoire Montpelliérain d'Économie Théorique et Appliquée ( LAMETA ), and Université Montpellier 1 ( UM1 ) -Université Paul-Valéry - Montpellier 3 ( UM3 ) -Centre international d'études supérieures en sciences agronomiques ( Montpellier SupAgro ) -Institut national de la recherche agronomique [Montpellier] ( INRA Montpellier ) -Université de Montpellier ( UM ) -Centre National de la Recherche Scientifique ( CNRS ) -Institut national d’études supérieures agronomiques de Montpellier ( Montpellier SupAgro )
Subjects: Economics and Econometrics, Liberalization, universal service, postal market, digitalization, 05 social sciences, Public administration, jel:L51, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Competition (economics), jel:L86, jel:L87, Universal service, 0502 economics and business, [ SHS.ECO ] Humanities and Social Sciences/Economies and finances, Business, 050207 economics, Marketing, health care economics and organizations, ComputingMilieux_MISCELLANEOUS, 050205 econometrics
Abstract: The postal sector has undergone dramatic changes over the recent years under the double effect of ongoing liberalization and increased competition with alternative communication channels (e-substitution). As a result, the mail volume handled by the historical operator has declined sharply while the latter’s ability to match the same standard of universal service may be under threat. Thus, a reform of the postal universal service is on the agenda. This paper examines possible reforming options ranging from keeping universal service within the postal sector to redefining universal service as spanning postal and electronic technologies.
Published: 2014
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5. Compensating the dead? Yes we can!

Author: Fleurbaey, Marc, Leroux, Marie-Louise, Ponthière, Grégory, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Centre de recherche sens, ethique, société (CERSES - UMR 8137), Université Paris Descartes - Paris 5 (UPD5)-Centre National de la Recherche Scientifique (CNRS), London School of Economics and Political Science (LSE), Institut d'économie publique (IDEP), IDEP, Sciences Po Paris - Institut d'études politiques de Paris (IEP Paris), Paris-Jourdan Sciences Economiques (PSE), École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Paris School of Economics (PSE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Sciences Po (Sciences Po), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Center of Operation Research and Econometrics [Louvain] ( CORE ), Université Catholique de Louvain ( UCL ), Centre de recherche sens, ethique, société ( CERSES - UMR 8137 ), Université Paris Descartes - Paris 5 ( UPD5 ) -Centre National de la Recherche Scientifique ( CNRS ), London School of Economics and Political Science ( LSE ), Institut d'économie publique ( IDEP ), Sciences Po Paris - Institut d'études politiques de Paris ( IEP Paris ), Paris-Jourdan Sciences Economiques ( PSE ), Centre National de la Recherche Scientifique ( CNRS ) -École des Ponts ParisTech ( ENPC ) -École des hautes études en sciences sociales ( EHESS ) -Institut National de la Recherche Agronomique ( INRA ) -École normale supérieure - Paris ( ENS Paris ), Paris School of Economics ( PSE ), and Centre National de la Recherche Scientifique (CNRS)-École des Ponts ParisTech (ENPC)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-École normale supérieure - Paris (ENS Paris)
Subjects: compensation, longevity, mortality, fairness, redistribution, compensation,longevity,mortality,fairness,redistribution,justice,mortalité,longévité, jel:D63, jel:D71, fairness, JEL : J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J18 - Public Policy, JEL: D - Microeconomics/D.D7 - Analysis of Collective Decision-Making/D.D7.D71 - Social Choice • Clubs • Committees • Associations, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, mortality, justice, redistribution, JEL: I - Health, Education, and Welfare/I.I1 - Health/I.I1.I18 - Government Policy • Regulation • Public Health, JEL : I - Health, Education, and Welfare/I.I1 - Health/I.I1.I18 - Government Policy • Regulation • Public Health, compensation, longevity, JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J18 - Public Policy, jel:I18, Compensation, Longevity, Mortality, Fairness, Redistribution, jel:J18, JEL: D - Microeconomics/D.D6 - Welfare Economics/D.D6.D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement, [ SHS.ECO ] Humanities and Social Sciences/Economies and finances, JEL : D - Microeconomics/D.D7 - Analysis of Collective Decision-Making/D.D7.D71 - Social Choice • Clubs • Committees • Associations, longévité, mortalité, JEL : D - Microeconomics/D.D6 - Welfare Economics/D.D6.D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Abstract: An early death is, undoubtedly, a serious disadvantage. However, the compensation of short-lived individuals has remained so far largely unexplored, probably because it appears infeasible. Indeed, short-lived agents can hardly be identified ex ante, and cannot be compensated ex post. We argue that, despite the above difficulties, a compensation can be carried out by encouraging early consumption in the life cycle. In a model with heterogeneous preferences and longevities, we show how a specific social criterion can be derived from intuitive principles, and we study the corresponding optimal policy under various informational assumptions. We also study the robustness of our solution to alternative types of preferences and savings policies., Une mort précoce constitue, sans aucun doute, un dommage majeur. Cependant, la compensation des individus à vie courte est restée jusqu'à présent largement non explorée, principalement parce que cette compensation semble infaisable. En effet, les personnes à vie courte peuvent difficilement être identifiées ex ante, et ne peuvent plus être compensées ex post. Nous démontrons que, malgré les difficultés mentionnées ci-dessus, une compensation peut être réalisée, en encourageant la consommation au début du cycle de vie. Sur la base d'un modèle où la population présente des préférences hétérogènes et des longueurs de vie inégales, nous montrons qu'un critère social spécifique peut être dérivé à partir de principes intuitifs, et nous étudions la politique optimale correspondante sous divers contextes informationnels. Nous examinons enfin la robustesse de notre solution à diverses spécifications des préférences individuelles et à diverses politiques d'épargne.
Published: 2010

6. Empirical Research on Ethical Preferences: How Popular is Prioritarianism?

Author: Erik Schokkaert, Benoît Tarroux, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Groupe d'analyse et de théorie économique (GATE Lyon Saint-Étienne), École normale supérieure - Lyon (ENS Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Centre National de la Recherche Scientifique (CNRS), Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne (GATE Lyon Saint-Étienne), École normale supérieure de Lyon (ENS de Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet - Saint-Étienne (UJM)-Centre National de la Recherche Scientifique (CNRS), and Dao, Taï
Subjects: History, Polymers and Plastics, Population, Surveys, Industrial and Manufacturing Engineering, Empirical research, prioritarianism, 0502 economics and business, Economics, 050207 economics, Business and International Management, Positive economics, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, education, 050205 econometrics, Majority opinion, education.field_of_study, lab experiments, 05 social sciences, Veil of ignorance, JEL: D - Microeconomics/D.D7 - Analysis of Collective Decision-Making/D.D7.D71 - Social Choice • Clubs • Committees • Associations, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Social planner, distributive preferences, inequality aversion, JEL: D - Microeconomics/D.D6 - Welfare Economics/D.D6.D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement, Normative, Prioritarianism, Inequity aversion
Abstract: We survey the empirical literature on ethical preferences, covering both survey studies and incentivized laboratory experiments. Crucial axioms such as the Pigou-Dalton transfer principle are not accepted by a large fraction of the subjects. Moreover, in formulating their distributive preferences subjects attach much importance to the sources of income differences. Their preferences behind a veil of ignorance do not coincide with their preferences in the position of a social planner. These results suggest that prioritarian policy proposals will not necessarily be supported by a majority of the population. Although the majority opinion does not necessarily reflect the ethically desirable perspective, the empirical results still raise some interesting normative challenges.
Published: 2022
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7. Tarification optimale des réseaux en présence de prosommateurs hétérogènes

Author: Gautier, Axel, Jacqmin, Julien, Poudou, Jean-Christophe, HEC Liège, Université de Liège, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Liège Competition and Innovation Institute (LCII), CESifo, Neoma Business School (NEOMA), Montpellier Recherche en Economie (MRE), Université de Montpellier (UM), and Labex Entreprendre
Subjects: Decentralized production unit, Q42, JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics, grid regulation, ComputerApplications_COMPUTERSINOTHERSYSTEMS, L94, L51, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, JEL: L - Industrial Organization, solar panels, grid tariffs JEL Codes: D13
Abstract: International audience; Energy consumers can invest in photovoltaic (PV) panels and become prosumers. The benefit of such an investment depends on the regulatory framework. We consider a population of heterogenous consumers, with respect to both the cost of decentralized production and their degree of self-consumption.it is efficient to have investment by low-cost and high self-consumption profiles. We determine the optimal tariff in the presence of heterogenous prosumers. Net metering fails to screen consumers on the self-consumption dimension. Net purchasing can lead to the efficient investment if the tariffs are non-Coasian that is fixed fees exceed the grid operator's fixed costs.
Published: 2021
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8. Do PTAs with environmental provisions reduce emissions? Assessing the effectiveness of climate-related provisions?

Author: Sorgho, Zakaria, Joe, Tharakan, Université Laval [Québec] (ULaval), Fondation pour les Etudes et Recherches sur le Développement International (FERDI), HEC Liège, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), ANR-10-LABX-0014,IDGM+,Designing new international development policies from research outcomes. An enhanced(2010), Rouanet, Fabienne, and Laboratoires d'excellence - Designing new international development policies from research outcomes. An enhanced - - IDGM+2010 - ANR-10-LABX-0014 - LABX - VALID
Subjects: Environmental policy, Greenhouse gases, Climate-related provisions, Global warming, Preferential trade agreements, Climate change, JEL: F - International Economics/F.F1 - Trade/F.F1.F13 - Trade Policy • International Trade Organizations, JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q5 - Environmental Economics/Q.Q5.Q51 - Valuation of Environmental Effects, JEL: F - International Economics/F.F1 - Trade/F.F1.F18 - Trade and Environment, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q5 - Environmental Economics/Q.Q5.Q54 - Climate • Natural Disasters and Their Management • Global Warming, [SHS.ECO]Humanities and Social Sciences/Economics and Finance
Abstract: The aim of this paper is to assess the effectiveness on climate change mitigation of the climate-related commitments contained in PTAs. Because of a lack of availability of detailed data on PTAs, the academic literature on the role of PTAs with environmental provisions (PTAwEP) in global climate governance remains limited. A novel and detailed database identifying nearly 300 different types of environmental provisions from more than 680 PTAs since 1947 allows us to establish per country and per year the number of PTAs by distinguishing PTAs with climate-related provisions (PTAwCP) and PTAs with provisions related to other environmental issues. Using panel data covering 165 countries over the period 1995 to 2012, controlling for endogeneity issues, our main result shows that PTAwCP statistically reduce the level of CO2, CH4 and N2O. This suggests that governments seem to comply with the climate-related commitments they made in the PTAs, what potentially helps tackling global warming. Moreover, findings show that to be effective in terms of mitigating climate change, a PTAwEP should contain climate-related commitments.
Published: 2020

9. Empirical research on ethical preferences

Author: Schokkaert, Erik, Tarroux, Benoît, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Groupe d'analyse et de théorie économique (GATE Lyon Saint-Étienne), École normale supérieure - Lyon (ENS Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Centre National de la Recherche Scientifique (CNRS), Dao, Taï, Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne (GATE Lyon Saint-Étienne), École normale supérieure de Lyon (ENS de Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), and Université de Lyon-Université de Lyon-Université Jean Monnet - Saint-Étienne (UJM)-Centre National de la Recherche Scientifique (CNRS)
Subjects: [SHS.ECO] Humanities and Social Sciences/Economics and Finance, [SHS.ECO]Humanities and Social Sciences/Economics and Finance
Abstract: Colloque organisé en ligne en raison de la crise sanitaire; International audience
Published: 2020

10. Exploiting separability in a multisectoral model of oligopolistic competition

Author: Claude d'Aspremont, Rodolphe Dos Santos Ferreira, UCL - SSH/LIDAM/CORE - Center for operations research and econometrics, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Bureau d'Économie Théorique et Appliquée (BETA), and Université de Strasbourg (UNISTRA)-Université de Lorraine (UL)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE)
Subjects: Computer Science::Computer Science and Game Theory, Sociology and Political Science, Market size, Homothetic transformation, Oligopoly, Oligopolistic competition, conjectures, Aggregation of price and quantity, 0502 economics and business, Economics, Partition (number theory), 050207 economics, Market share, Conjectures, General Psychology, 050205 econometrics, Group (mathematics), 05 social sciences, Multisector economies, General Social Sciences, multisector economies, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Computer Science::Computers and Society, Constraint (information theory), Aggregation of price and quantity conjectures, [SHS.GESTION]Humanities and Social Sciences/Business administration, Statistics, Probability and Uncertainty, oligopolistic competition, aggregation of price and quantity, Mathematical economics
Abstract: International audience; The paper uses the most general version of a Dixit–Stiglitz economy and the concept of oligopolistic equilibrium, defined in previous work, with firms maximizing profits in prices and quantities under a market share and a market size constraint. The purpose here is to take even more advantage of separability so as to partition the oligopolistic sector into groups. Weak separability simplifies quantity conjectures and homothetic separability simplifies price conjectures. Oligopolistic equilibria can in addition be approximated by introducing group expenditure conjectures. Finally, the way different groups interact within the same industry is illustrated within the same framework.
Published: 2020
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11. Opinion formation and targeting when persuaders have extreme and centrist opinions

Author: Akylai Taalaibekova, Agnieszka Rusinowska, Centre d'économie de la Sorbonne (CES), Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS), Centre National de la Recherche Scientifique (CNRS), Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Université Paris 1 Panthéon-Sorbonne (UP1), This work has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie Grant Agreement No. 721846, 'Expectations and Social Influence Dynamics in Economics (ExSIDE)'., European Project: 721846,Marie Skłodowska-Curie Actions (MSCA) in Horizon 2020,H2020-MSCA-ITN-2016/H2020-MSCA-ITN-2016,ExSIDE(2017), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), and UCL - SSH/LIDAM/CORE - Center for operations research and econometrics
Subjects: Economics and Econometrics, Persuasion, Consensus, media_common.quotation_subject, symbols.namesake, Strategy, Social networkOpinion formationConsensusTargetingExtreme persuaderCentrist persuader, Order (exchange), 0502 economics and business, Centrist persuader, Economics, Positive economics, 050205 econometrics, media_common, Social network, Targeting, Opinion formation, business.industry, Applied Mathematics, 05 social sciences, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Nash equilibrium, symbols, 050206 economic theory, Convergence (relationship), business, Centrality, Extreme persuader
Abstract: We consider a model of competitive opinion formation in which three persuaders characterized by (possibly unequal) persuasion impacts try to influence opinions in a society of individuals embedded in a social network. Two of the persuaders have the extreme and opposite opinions, and the third one has the centrist opinion. Each persuader chooses one individual to target, i.e., he forms a link with the chosen individual in order to spread his own “point of view” in the society and to get the average long run opinion as close as possible to his own opinion. We examine the opinion convergence and consensus reaching in the society. Also the case when the persuaders choose several targets for diffusion of information is discussed. We study the existence and characterization of pure strategyNash equilibriain the game played by the persuaders with equal impacts. This characterization depends on influenceability and centrality of the targets. We discuss the effect of the centrist persuader on the consensus and symmetric equilibria, compared to the framework with only two persuaders having the extreme opinions. When the persuasion impacts are unequal with one persuader having a sufficiently large impact, the game has only equilibria in mixed strategies.
Published: 2019
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12. Equivalent income versus equivalent lifetime: does the metric matter?

Author: Onder, Harun, Pestieau, Pierre, Ponthière, Grégory, The World Bank (The World Bank), The World Bank, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), University of Liege, Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS-PSL), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Paris Jourdan Sciences Economiques (PJSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique (ERUDITE), Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12)-Université Paris-Est Marne-la-Vallée (UPEM), Université Catholique de Louvain (UCL), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), Bauer, Caroline, École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), and Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)
Subjects: value of life, JEL: I - Health, Education, and Welfare/I.I3 - Welfare, Well-Being, and Poverty/I.I3.I31 - General Welfare, Well-Being, well-being, equivalent income, JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J17 - Value of Life • Forgone Income, measurement, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, [SHS.ECO]Humanities and Social Sciences/Economics and Finance
Abstract: We examine the e¤ects of the postulated metric on the measurement of well-being, by comparing, in the (income, lifetime) space, two indexes: the equivalent income index and the equivalent lifetime index. Those in- dexes are shown to satisfy di¤erent properties concerning interpersonal well-being comparisons, which can lead to contradictory rankings. While those incompatibilities arise under distinct indi¤erence maps, we also ex- plore the e¤ects of the metric while relying on a unique indi¤erence map, and show that, even in that case, the postulated metric matters for the measurement of well-being. That point is illustrated by quantifying, by those two indexes, the (average) well-being loss due to the Syrian War. Relying on a particular metric leads, from a quantitative perspective, to di¤erent pictures of the deprivation due to the War.
Published: 2019

13. Enlarging the collective model of household behavior: A revealed preference analysis

Author: Claude d'Aspremont, Rodolphe Dos Santos Ferreira, UCL - SSH/LIDAM/CORE - Center for operations research and econometrics, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Bureau d'Économie Théorique et Appliquée (BETA), Institut National de la Recherche Agronomique (INRA)-Université de Strasbourg (UNISTRA)-Université de Lorraine (UL)-Centre National de la Recherche Scientifique (CNRS), Université Catholique de Louvain = Catholic University of Louvain (UCL), and Université de Lorraine (UL)-Université de Strasbourg (UNISTRA)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS)
Subjects: Economics and Econometrics, Labour economics, Semi-cooperative household behavior, Pooling, JEL: C - Mathematical and Quantitative Methods/C.C7 - Game Theory and Bargaining Theory/C.C7.C71 - Cooperative Games, Autonomous consumption, semi-cooperative household behavior, Microeconomics, Willingness to pay, Revealed preference, 0502 economics and business, Economics, rationalizability, 050207 economics, 05 social sciences, JEL: H - Public Economics/H.H4 - Publicly Provided Goods/H.H4.H41 - Public Goods, 050301 education, Rationalizability, Public good, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Revealed preference analysis, Sharing rule identification, revealed preference analysis, sharing rule identification, JEL: C - Mathematical and Quantitative Methods/C.C7 - Game Theory and Bargaining Theory/C.C7.C72 - Noncooperative Games, [SHS.GESTION]Humanities and Social Sciences/Business administration, 0503 education, Lying, JEL: D - Microeconomics/D.D1 - Household Behavior and Family Economics/D.D1.D11 - Consumer Economics: Theory, Public finance
Abstract: International audience; We use a comprehensive model of strategic household behavior in which the spouses’ expenditure on each public good is decomposed into autonomous spending and coordinated spending à la Lindahl. We obtain a continuum of semi-cooperative regimes parameterized by the relative weights put on autonomous spending, by each spouse and for each public good, nesting full cooperative and noncooperative regimes as limit cases. Testing is approached through revealed preference analysis, by looking for rationalizability of observed data sets, with the price of each public good lying between the maximum and the sum of the hypothesized marginal willingness to pay of the two spouses. Once rationalized, an observed data set always allows to identify the sharing rule, except when both spouses contribute in full autonomy to some public good (a situation of local income pooling).
Published: 2019
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14. Optimal fertility under age-dependent labour productivity

Author: Pierre Pestieau, Gregory Ponthiere, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Paris School of Economics (PSE), Paris Jourdan Sciences Economiques (PJSE), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique (ERUDITE), Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12)-Université Paris-Est Marne-la-Vallée (UPEM), Université Catholique de Louvain = Catholic University of Louvain (UCL), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS-PSL), and Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL)
Subjects: Economics and Econometrics, Labour economics, Technological change, media_common.quotation_subject, Total fertility rate, 05 social sciences, 1. No poverty, Age dependent, Fertility, age structure, labour productivity, Overlapping generations model, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Social welfare function, Physical capital, 0502 economics and business, 8. Economic growth, Economics, 050207 economics, optimal fertility, 050205 econometrics, Demography, media_common, Social policy
Abstract: International audience; In the so-called Rapport Sauvy (1962), the French demographer Alfred Sauvy argued that Wallonia’s fertility rate was socially suboptimal, and recommended a 20 % rise of fertility, on the grounds that a society with too low a fertility leads to a low-productive economy composed of old workers having old ideas. This paper examines how Sauvy’s intuition can be incorporated in the Samuelsonian optimal fertility model (Samuelson, Int Econ Rev 16:531–538, 1975). We build a four-period OLG model with physical capital and with two generations of workers (young and old), the skills of the latter being subject to some form of decay. We characterize the optimal fertility rate and show that this equalizes, at the margin, the sum of the capital dilution effect (Solow effect) and the labour age-composition effect (Sauvy effect) with the intergenerational redistribution effect (Samuelson effect). Numerical simulations show that it is hard, from a quantitative perspective, to reconcile Sauvy’s recommendation with facts. This leads us to examine other potential determinants of optimal fertility, by introducing technological progress and a more general social welfare function.
Published: 2016
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15. About the Origin of Cities

Author: Yorgos Y. Papageorgiou, André de Palma, Jacques-François Thisse, Philip Ushchev, École normale supérieure - Cachan (ENS Cachan), McMaster University [Hamilton, Ontario], Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), MONARDO, Julien, and UCL - SSH/LIDAM/CORE - Center for operations research and econometrics
Subjects: Economics and Econometrics, Spatial stability, Primate city, central place, spatial externality, Population, urban hierarchy, 0502 economics and business, Economic geography, 050207 economics, Central place, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, education, 050205 econometrics, education.field_of_study, Hierarchy, congestion, 05 social sciences, Urban hierarchy, Periodic distribution, R14, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Urban Studies, Geography, Homogeneous, Economic system
Abstract: We provide a bare–bones framework that uncovers the circumstances which lead either to the emergence of equally-spaced and equally-sized central places or to a hierarchy of central places. We show how these patterns reflect the preferences of agents and the efficiency of transportation and communication technologies. With one population of homogeneous individuals, the economy is characterized by a uniform distribution or by a periodic distribution of central places having the same size. The interaction between two distinct populations may give rise to a hierarchy of central places with one or several primate cities.
Published: 2018

16. Complementary Monopolies with Asymmetric Information

Author: Didier Laussel, Joana Resende, Aix-Marseille Sciences Economiques (AMSE), École des hautes études en sciences sociales (EHESS)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS)-Aix Marseille Université (AMU), Economics Department, University of Porto, École des hautes études en sciences sociales (EHESS)-Aix Marseille Université (AMU)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS), Lai Tong, Charles, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), and This article is a result of the project NORTE-01-0145-FEDER-028540, supported by Norte Portugal Regional Operational Programme (NORTE 2020), under the PORTUGAL 2020 Partnership Agreement, through the European Regional Development Fund (ERDF) and through national funds by the FCT – Fundação para a Ciência e a Tecnologia. This research also benefited from the support of COMPETE 2020 (POCI) and FCT through the project POCI-01-0145-FEDER-006890.
Subjects: TheoryofComputation_MISCELLANEOUS, Economics and Econometrics, media_common.quotation_subject, JEL: L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L14 - Transactional Relationships • Contracts and Reputation • Networks, JEL: L - Industrial Organization/L.L2 - Firm Objectives, Organization, and Behavior/L.L2.L22 - Firm Organization and Market Structure, Discount points, Microeconomics, pricing schedules, symbols.namesake, Information asymmetry, Downstream (manufacturing), asymmetric information, 0502 economics and business, 050207 economics, Function (engineering), [SHS.ECO] Humanities and Social Sciences/Economics and Finance, 050205 econometrics, media_common, Upstream (petroleum industry), private common agency games, JEL: L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L10 - General, 05 social sciences, TheoryofComputation_GENERAL, Payment, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Pricing schedule, Nash equilibrium, complementary inputs, symbols, Business, JEL: D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D82 - Asymmetric and Private Information • Mechanism Design
Abstract: International audience; We investigate how asymmetric information on final demand affects strategic interaction between a downstream monopolist and a set of upstream monopolists, who independently produce complementary inputs. We study an intrinsic private common agency game in which each supplier i independently proposes a pricing schedule contract to the assembler, specifying the supplier’s payment as a function of the assembler’s purchase of input i. We provide a necessary and sufficient equilibrium condition. A lot of equilibria satisfy this condition but there is a unique Pareto-undominated Nash equilibrium from the suppliers’ point of view. In this equilibrium, there are unavoidable efficiency losses due to excessively low sales of the good. However, suppliers may be able to limit these distortions by implicitly coordinating on an equilibrium with a rigid (positive) output in bad demand circumstances.
Published: 2018
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17. Espérance de vie et prévention des risques liés au vieillissement

Author: Ponthière, Grégory, Pestieau, Pierre, Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Paris-Jourdan Sciences Economiques (PJSE), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Université de Liège, Paris Jourdan Sciences Economiques (PJSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), École normale supérieure - Paris (ENS Paris)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Université Catholique de Louvain (UCL), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), and UCL - SSH/LIDAM/CORE - Center for operations research and econometrics
Subjects: [SHS.ECO]Humanities and Social Sciences/Economics and Finance
Abstract: International audience; Cet article analyse les principaux risques liés au vieillissement et les moyens de les prévenir. Ces risques sont ceux d'une vie trop longue et non financée, de la maladie, d'une perte d'autonomie, de maltraitance institutionnelle ou familiale et enfin d'impécuniosité.
Published: 2018

18. Internalizing fertility and education externalities on capital returns

Author: Julio Dávila, Center of Operation Research and Econometrics [Louvain] (CORE), and Université Catholique de Louvain = Catholic University of Louvain (UCL)
Subjects: Economics and Econometrics, Labour economics, education.field_of_study, Pension, 05 social sciences, Population, 1. No poverty, Compulsory education, Overlapping generations model, Investment (macroeconomics), [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Human capital, Microeconomics, 0502 economics and business, 8. Economic growth, Economics, 050207 economics, education, Externality, ComputingMilieux_MISCELLANEOUS, 050205 econometrics, Public finance
Abstract: This paper explains, first, that, since households disregard the impact in the aggregate of their fertility and education choices on the return to their own savings, the market does not implement the mix of population and skills that a planner internalizing all externalities from fertility and education would choose. It then shows that for an economy without capital over-accumulation—the empirically relevant case, cf. Abel et al. (Rev Econ Stud 56(1):1–19, 1989)—a market supplying efficiency units of labor beyond the planner’s level does so by leading households to go for quality over quantity in their reproductive choices—over-investing in education and depressing fertility with respect to the planner’s levels—a feature reminiscent of reproductive patterns in developed economies. It is finally shown that a pension scheme contingent to the household’s fertility and education investment decentralizes the planner’s allocation as an equilibrium outcome. Such pension scheme is financed through a tax on the increase in labor income that results from households education investment. Interestingly enough, the usual tax-financed compulsory education does not decentralize the planner’s allocation, even when the mandatory level of education is the planner’s, since it does not address the misalignment of incentives at the heart of the problem.
Published: 2018
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19. Education choices, longevity and optimal policy in a Ben-Porath economy

Author: Gregory Ponthiere, Yukihiro Nishimura, Pierre Pestieau, Osaka University [Osaka], Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Paris Jourdan Sciences Economiques (PJSE), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Paris School of Economics (PSE), Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique (ERUDITE), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), Institut Universitaire de France (IUF), Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche (M.E.N.E.S.R.), Center for Economic Policy Research (CEPR), CEPR, Paris-Jourdan Sciences Economiques (PSE), Centre National de la Recherche Scientifique (CNRS)-École des Ponts ParisTech (ENPC)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-École normale supérieure - Paris (ENS Paris), Université Catholique de Louvain = Catholic University of Louvain (UCL), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12)-Université Paris-Est Marne-la-Vallée (UPEM), Bauer, Caroline, École normale supérieure - Paris (ENS-PSL), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS-PSL), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), and UCL - SSH/LIDAM/CORE - Center for operations research and econometrics
Subjects: Sociology and Political Science, Life expectancy, media_common.quotation_subject, Overlapping generations model, Education, Microeconomics, Information asymmetry, Order (exchange), 0502 economics and business, Economics, Production (economics), 0501 psychology and cognitive sciences, 050207 economics, Distortion (economics), [SHS.ECO] Humanities and Social Sciences/Economics and Finance, General Psychology, media_common, 05 social sciences, Factor price, 1. No poverty, Longevity, General Social Sciences, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Optimal policy, Golden Rule (fiscal policy), OLG models, 8. Economic growth, Statistics, Probability and Uncertainty, 050104 developmental & child psychology
Abstract: International audience; We develop a 3-period overlapping generations (OLG) model where individuals borrow at the young age in order to finance their education. Education does not only increase future wages, but also raises the duration of life, which, in turn, can affect education, in line with Ben-Porath (1967). We examine the conditions under which the Ben-Porath effect prevails. Although the existence of a positive Ben-Porath effect requires, under exogenous longevity, a change in lifetime hours of work, we find, under endogenous longevity, that a positive Ben-Porath effect arises even when old-age labor is fixed. It is also shown that the Ben-Porath effect may not be robust to allowing for adjustments in production factor prices. On the policy side, we show that the social optimum can be decentralized provided the capital stock is set to the Modified Golden Rule level. Finally, we introduce intracohort heterogeneity in learning ability, and we show that, under asymmetric information, the second-best optimal non-linear tax scheme involves a downward distortion in the education of less able types, which reinforces the longevity gap in comparison with the first-best.
Published: 2018
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20. Premature mortality and poverty measurement in an OLG economy

Author: Gregory Ponthiere, Mathieu Lefebvre, Pierre Pestieau, UCL - SSH/LIDAM/CORE - Center for operations research and econometrics, Bureau d'Économie Théorique et Appliquée (BETA), Université de Lorraine (UL)-Université de Strasbourg (UNISTRA)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS), Paris Jourdan Sciences Economiques (PJSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Université de Liège, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Institut Universitaire de France (IUF), Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche (M.E.N.E.S.R.), Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique (ERUDITE), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12)-Université Paris-Est Marne-la-Vallée (UPEM), Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS)-Université de Lorraine (UL)-Université de Strasbourg (UNISTRA), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Université Catholique de Louvain (UCL), Institut National de la Recherche Agronomique (INRA)-Université de Strasbourg (UNISTRA)-Université de Lorraine (UL)-Centre National de la Recherche Scientifique (CNRS), and Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL)
Subjects: Economics and Econometrics, General equilibrium theory, income-differentiated mortality, media_common.quotation_subject, Overlapping generations model, capital accumulation, Capital accumulation, Income distribution, 0502 economics and business, Economics, 050207 economics, 050205 econometrics, Demography, Social policy, media_common, Selection bias, Poverty, 05 social sciences, 1. No poverty, missing poor, poverty measures, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Economy, Capital (economics), OLG models, 8. Economic growth
Abstract: International audience; Following Kanbur and Mukherjee (Bull Econ Res 59(4):339–359 2007), a solution to the “missing poor” problem (i.e., selection bias in poverty measures due to income-differentiated mortality) consists in computing hypothetical poverty rates while assigning a fictitious income to the prematurely dead. However, in a dynamic general equilibrium economy, doing “as if” the prematurely dead were still alive is likely to affect wages, output and capital accumulation, with an uncertain effect on poverty. We develop a three-period OLG model with income-differentiated mortality and compare actual poverty rates with hypothetical poverty rates that would have prevailed if everyone faced the survival conditions of the top income class. Including the prematurely dead has an ambiguous impact on poverty, since it affects income distribution through capital dilution, composition effects, and horizon effects. Our results are illustrated by quantifying the impact of income-differentiated mortality on poverty measures for France (1820–2010).
Published: 2018
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21. FGT Old-Age Poverty Measures and the Mortality Paradox: Theory and Evidence

Author: Pierre Pestieau, Mathieu Lefebvre, Gregory Ponthiere, Bureau d'Économie Théorique et Appliquée (BETA), Institut National de la Recherche Agronomique (INRA)-Université de Strasbourg (UNISTRA)-Université de Lorraine (UL)-Centre National de la Recherche Scientifique (CNRS), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Paris School of Economics (PSE), Paris Jourdan Sciences Economiques (PJSE), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique (ERUDITE), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), Université de Lorraine (UL)-Université de Strasbourg (UNISTRA)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS), Université Catholique de Louvain = Catholic University of Louvain (UCL), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Center for Economic Policy Research (CEPR), CEPR, Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12)-Université Paris-Est Marne-la-Vallée (UPEM), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS-PSL), and Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL)
Subjects: Economics and Econometrics, education.field_of_study, FGT poverty measures, Poverty, Income-differentiated mortality, 05 social sciences, Population, Poverty measurement, 1. No poverty, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, JEL: I - Health, Education, and Welfare/I.I3 - Welfare, Well-Being, and Poverty/I.I3.I32 - Measurement and Analysis of Poverty, Paradoxes of set theory, Income distribution, 0502 economics and business, 8. Economic growth, Economics, 050207 economics, Socioeconomics, education, 050205 econometrics, Demography
Abstract: International audience; Income-differentiated mortality, by reducing the share of poor persons in the population, leads to the “Mortality Paradox”: the worse the survival conditions of the poor are, the lower is the measured poverty. We show that FGT measures (Foster et al., 1984) are, in general, not robust to variations in survival conditions. Then, following Kanbur and Mukherjee (2007), we propose to adjust FGT poverty measures by extending the income profiles of the prematurely dead, and we identify the condition under which so-adjusted FGT measures are robust to mortality changes. Finally, we show, on the basis of data from 2007 on old-age poverty in 11 European economies, that the effect of extending income profiles of the prematurely dead on poverty measurement varies with : (1) the fictitious income assigned to the prematurely dead ; (2) the degree of poverty aversion; (3) the shape of the (unadjusted) income distribution; and (4) the strength of the income/mortality relationship.
Published: 2018
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22. Tax evasion and social information: an experiment in Belgium, France, and the Netherlands

Author: Marie Claire Villeval, Mathieu Lefebvre, Pierre Pestieau, Arno Riedl, Laboratoire Montpelliérain d'Économie Théorique et Appliquée (LAMETA), Université Montpellier 1 (UM1)-Université Paul-Valéry - Montpellier 3 (UM3)-Institut National de la Recherche Agronomique (INRA)-Centre international d'études supérieures en sciences agronomiques (Montpellier SupAgro)-Université de Montpellier (UM)-Centre National de la Recherche Scientifique (CNRS)-Institut national d’études supérieures agronomiques de Montpellier (Montpellier SupAgro), Center for Economic Policy Research (CEPR), CEPR, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Paris-Jourdan Sciences Economiques (PSE), École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Paris School of Economics (PSE), CESifo, IZA, Netspar, The Maastricht University School of Business and Economics, Maastricht University [Maastricht], Groupe d'analyse et de théorie économique (GATE Lyon Saint-Étienne), École normale supérieure - Lyon (ENS Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Centre National de la Recherche Scientifique (CNRS), Université Montpellier 1 (UM1)-Université Paul-Valéry - Montpellier 3 (UPVM)-Institut National de la Recherche Agronomique (INRA)-Centre international d'études supérieures en sciences agronomiques (Montpellier SupAgro)-Université de Montpellier (UM)-Centre National de la Recherche Scientifique (CNRS)-Institut national d’études supérieures agronomiques de Montpellier (Montpellier SupAgro), Université Catholique de Louvain = Catholic University of Louvain (UCL), École normale supérieure - Paris (ENS-PSL), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne (GATE Lyon Saint-Étienne), École normale supérieure de Lyon (ENS de Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet - Saint-Étienne (UJM)-Centre National de la Recherche Scientifique (CNRS), Belgian Science Policy (SUBLEC AG/JJ/137), Belgium's French Community (ARC 05/10-332), Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement (Institut Agro)-Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement (Institut Agro), École normale supérieure - Paris (ENS Paris), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Centre National de la Recherche Scientifique (CNRS)-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université Lumière - Lyon 2 (UL2)-École normale supérieure - Lyon (ENS Lyon), Microeconomics & Public Economics, and RS: GSBE ETBC
Subjects: Economics and Econometrics, Double taxation, REFLECTION, media_common.quotation_subject, Tax evasion, Audit, JEL: D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D83 - Search • Learning • Information and Knowledge • Communication • Belief • Unawareness, Social interactions, Compliance (psychology), Accounting, Income tax, Economics, DECEPTION, JEL: C - Mathematical and Quantitative Methods/C.C9 - Design of Experiments/C.C9.C91 - Laboratory, Individual Behavior, health care economics and organizations, media_common, JEL: H - Public Economics/H.H2 - Taxation, Subsidies, and Revenue/H.H2.H26 - Tax Evasion and Avoidance, RISK, ECONOMICS, Public economics, IDENTIFICATION, Cross-country comparisons, MORALE, Deception, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, INDIVIDUAL BEHAVIOR, Identification (information), Peer effects, INCOME-TAX, AUDIT, Experiments, Finance, Public finance
Abstract: We experimentally study how receiving information about tax compliance of others affects individuals' occupational choices and subsequent evading decisions. In one treatment individuals receive information about the highest tax evasion rates of others in past experimental sessions with no such social information; in another treatment they receive information about the lowest tax evasion rates observed in the past sessions with no such social information. We observe an asymmetric effect of social information on tax compliance. Whereas examples of high compliance do not have any disciplining effect, we find evidence that examples of low compliance significantly increase tax evasion for certain audit probabilities. No major differences are found across countries.data source: lab experiment data, available from authors upon request
Published: 2015
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23. Mortalité différentielle et pauvreté par âge

Author: Pierre Pestieau, Gregory Ponthiere, Mathieu Lefebvre, Bureau d'Économie Théorique et Appliquée (BETA), Institut National de la Recherche Agronomique (INRA)-Université de Strasbourg (UNISTRA)-Université de Lorraine (UL)-Centre National de la Recherche Scientifique (CNRS), Paris School of Economics (PSE), Paris-Jourdan Sciences Economiques (PSE), Centre National de la Recherche Scientifique (CNRS)-École des Ponts ParisTech (ENPC)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-École normale supérieure - Paris (ENS Paris), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Center for Economic Policy Research (CEPR), CEPR, Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique (ERUDITE), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), Ce travail a bénéficié d'une aide de l'Etat gérée par l'Agence Nationale de la Recherche au titre du programme « Investissements d'avenir » portant la référence ANR-10-LABX-93-01. This work was supported by the French National Research Agency, through the program Investissements d'Avenir, ANR-10--LABX_93-01, Université de Lorraine (UL)-Université de Strasbourg (UNISTRA)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Université Catholique de Louvain = Catholic University of Louvain (UCL), Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12)-Université Paris-Est Marne-la-Vallée (UPEM), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS-PSL), and École normale supérieure - Paris (ENS-PSL)
Subjects: mortalité différentielle, 0502 economics and business, 05 social sciences, General Earth and Planetary Sciences, 050207 economics, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, pauvreté, 050205 econometrics, General Environmental Science
Abstract: International audience; En présence d’une mortalité différentielle selon le revenu, les mesures habituelles de la pauvreté ne capturent pas uniquement la vraie pauvreté, mais reflètent également le processus de sélection induit par la mortalité différentielle. Face à ce type de biais de sélection, une solution consiste à étendre, à l’aide d’un revenu fictif, les profils de revenu des personnes décédées prématurément, afin de les prendre en compte dans la mesure de la pauvreté. La présente étude propose d’analyser l’effet de l’âge sur la taille du biais de sélection. A cette fin, nous exploitons des données sur la pauvreté par âge en Belgique, et comparons les mesures de pauvreté classiques aux mesures de pauvreté ajustées obtenues par l’extension des profils de revenus des personnes décédées prématurément. Nous montrons que, bien que l’écart entre mesures ajustées et non ajustées soit plus grand aux âges élevés de la vie, il n’en demeure pas moins qu’un biais de sélection est présent à tous les âges.
Published: 2015
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24. Longterm decision making under the threat of earthquakes

Author: Camacho, Carmen, Sun, Yu, Paris Jourdan Sciences Economiques (PJSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), London School of Economics and Political Science (LSE), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), and Université Catholique de Louvain (UCL)
Subjects: Prevention, JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O2 - Development Planning and Policy/O.O2.O21 - Planning Models • Planning Policy, Bayesian Learning, Earthquakes, Economic, Growth, Policy Making, JEL: C - Mathematical and Quantitative Methods/C.C6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling, JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development/O.O1.O13 - Agriculture • Natural Resources • Energy • Environment • Other Primary Products, JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q5 - Environmental Economics/Q.Q5.Q54 - Climate • Natural Disasters and Their Management • Global Warming, [SHS.ECO]Humanities and Social Sciences/Economics and Finance
Abstract: Under the threat of earthquakes, long-term policy makers need tools to decide optimally on the economic trajectories that maximize the society welfare. Tools should be flexible and account for the consequences of earthquakes, incorporating the best estimate of their frequency and intensity. In this regard, we propose in this paper a modeling strategy that combines optimal control techniques and Bayesian learning: after an earthquake occurs, policy makers can improve their knowledge and adjust policies optimally. Two numerical examples illustrate the advantages of our modelling strategy along different dimensions. While Japan symbolizes the policy maker who has learned from earthquakes protecting the economy accordingly; Italy helps us illustrate the importance of prevention capital.
Published: 2017

25. L'Etat-providence : défense et illustration

Author: Pestieau, Pierre, Lefebvre, Mathieu, Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Paris Jourdan Sciences Economiques (PJSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Bureau d'Économie Théorique et Appliquée (BETA), and Université de Lorraine (UL)-Université de Strasbourg (UNISTRA)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS)
Subjects: État providence, Politique sociale, Pays de l'Union européenne, France, 1990-2020, [SHS.ECO]Humanities and Social Sciences/Economics and Finance
Abstract: International audience; L’État-providence n’a jamais été autant décrié qu’aujourd’hui, alors qu’il n’a sans doute jamais été aussi nécessaire. Les critiques qu’il doit essuyer viennent de ceux qui veulent en réduire la voilure comme de ceux qui le trouvent incapable de remplir ses principales missions. Les multiples fractures sociales qui ont conduit une partie de la population à douter des politiques censées la secourir pour finir par basculer dans le vote populiste redonnent toute sa justification à un État-providence plus performant et soucieux de combler le fossé séparant une partie de la population socialement intégrée de celle qui compte les exclus.C’est dans cette perspective que se place cet ouvrage. Il présente d’abord un portrait social des pays européens en mettant l’accent sur la France. Il analyse la performance de leurs États-providence face à des obstacles qui ont pour noms « globalisation » et « individualisme ». Il aborde ensuite les principaux domaines où il peut et doit avoir une action : la santé, l’emploi, la retraite et la famille. Il conclut en proposant un certain nombre de recommandations concrètes.
Published: 2017

26. OUTPUT EXTERNALITIES ON TOTAL FACTOR PRODUCTIVITY

Author: Julio Davila Muro, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), and UCL - SSH/IMMAQ/CORE - Center for operations research and econometrics
Subjects: Economics and Econometrics, 05 social sciences, Overlapping generations model, Investment (macroeconomics), Competitive equilibrium, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Learning-by-doing (economics), Fiscal policy, Microeconomics, 0502 economics and business, 8. Economic growth, Remuneration, Economics, 050207 economics, Productivity, Total factor productivity, ComputingMilieux_MISCELLANEOUS, 050205 econometrics
Abstract: The impact that output has on future total factor productivity -i.e. the dynamic complementarities shown to be empirically relevant in Cooper and Johri (1997)- is not internalized by competitive agents. As a result, the allocation that a planner would choose cannot be reached as a competitive equilibrium outcome (neither for infinitely-lived agents nor for overlapping generations): the market remuneration to capital and labor are too low. The planner's allocation can nonetheless be implemented by a fiscal policy subsidizing as needed the returns to savings and the wage rate. The exact policy differs depending on whether just past investment or total output influences productivity: in the first case only capital returns need to be subsidized, while in the second case labor income needs to be subsidized too. The policy is balanced period-by-period by means of a lump-sum tax.
Published: 2017
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27. Premature deaths, accidental bequests and fairness

Author: Fleurbaey, Marc, Leroux, Marie-Louise, Pestieau, Pierre, Ponthiere, Gregory, Zuber, Stéphane, UCL - SSH/IMMAQ/CORE - Center for operations research and econometrics, Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), ESG-UQAM, Université du Québec à Montréal = University of Québec in Montréal (UQAM), Université de Liège, Université Catholique de Louvain = Catholic University of Louvain (UCL), Fonds de Recherche du Québec-Société et Culture (FRQSC), Social Science and Humanities Research Council (SSHRC) of Canada, ANR-16-CE03-0001,FAIR-CLIMPOP,Equité, changement climatique et population(2016), ANR-17-EURE-0001,PGSE,Ecole d'Economie de Paris(2017), Princeton University, Center of Operation Research and Econometrics [Louvain] (CORE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS-PSL), Paris Jourdan Sciences Economiques (PJSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique (ERUDITE), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), Centre National de la Recherche Scientifique (CNRS), Centre d'économie de la Sorbonne (CES), Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS), Université du Québec à Montréal (UQAM), Université Catholique de Louvain (UCL), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Bauer, Caroline, Equité, changement climatique et population - - FAIR-CLIMPOP2016 - ANR-16-CE03-0001 - AAPG2016 - VALID, Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), and UCL - SSH/LIDAM/CORE - Center for operations research and econometrics
Subjects: Economics and Econometrics, 050208 finance, J10, 05 social sciences, 1. No poverty, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, optimal taxation, mortality, compensation, egalitari- anism, OLG models, 8. Economic growth, 0502 economics and business, ddc:330, D91, H31, egalitarianism, 050207 economics, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, D63, accidental bequests, D64
Abstract: While little agreement exists regarding the taxation of bequests in general, there is a widely held view that accidental bequests should be subject to a confi…scatory tax. We propose to reexamine the optimal taxation of accidental bequests in an economy where individuals care about what they leave to their offspring in case of premature death. We show that, whereas the conventional 100 % tax view holds under the standard utilitarian social welfare criterion, it does not hold under the ex post egalitarian criterion, which assigns a strong weight to the welfare of unlucky short-lived individuals. From an egalitarian perspective, it is optimal not to tax, but to subsidize accidental bequests. We examine the robustness of those results in a dynamic OLG model of wealth accumulation, and show that, whereas the sign of the optimal tax on accidental bequests depends on the form of the joy of giving motive, it remains true that the 100 % tax view does not hold under the ex post egalitarian criterion.
Published: 2017

28. The Dixit–Stiglitz economy with a ‘small group’ of firms: A simple and robust equilibrium markup formula

Author: Claude d'Aspremont, Rodolphe Dos Santos Ferreira, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Bureau d'Économie Théorique et Appliquée (BETA), Institut National de la Recherche Agronomique (INRA)-Université de Strasbourg (UNISTRA)-Université de Lorraine (UL)-Centre National de la Recherche Scientifique (CNRS), and Université Catholique de Louvain = Catholic University of Louvain (UCL)
Subjects: Economics and Econometrics, Markup language, Degree (graph theory), JEL: L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L13 - Oligopoly and Other Imperfect Markets, Group (mathematics), 05 social sciences, Interval (mathematics), JEL: D - Microeconomics/D.D5 - General Equilibrium and Disequilibrium/D.D5.D51 - Exchange and Production Economies, First order, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, JEL: D - Microeconomics/D.D4 - Market Structure, Pricing, and Design/D.D4.D43 - Oligopoly and Other Forms of Market Imperfection, Oligopoly, Economy, Simple (abstract algebra), 0502 economics and business, 8. Economic growth, Economics, 050206 economic theory, 050207 economics, JEL: F - International Economics/F.F1 - Trade/F.F1.F12 - Models of Trade with Imperfect Competition and Scale Economies • Fragmentation
Abstract: International audience; In a general version of Dixit–Stiglitz two-sector economy, we present three variants of the concept of oligopolistic equilibrium in price-quantity pairs (d’Aspremont and Dos Santos Ferreira, 2016) integrating income feedback effects in three different ways. For the first two variants (Ford effects ignored or restricted to profits), a single and simple equilibrium markup formula is derived involving, for each firm, a conduct parameter indicating its degree of competitive toughness. Different specifications of these conduct parameters lead to different oligopolistic equilibria in prices and/or in quantities. In particular in the standard Dixit–Stiglitz economy, we show, that the first order conditions of a symmetric oligopolistic price equilibrium correspond to a unique degree of competitive toughness in the general markup formula, This degree is decreasing (and the markup increasing) as more feedback effects are taken into account by firms. On the contrary, for the third variant, introducing full Ford effects leads to lower markups and higher competitive toughness in the standard Dixit–Stiglitz economy and under conditions ensuring the equilibrium markup to remain in tne right interval.
Published: 2017
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29. The domestic welfare loss of Syrian Civil War: An equivalent income approach

Author: Onder, Harun, Pestieau, Pierre, Ponthière, Grégory, Bauer, Caroline, The World Bank (The World Bank), The World Bank, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Paris Jourdan Sciences Economiques (PJSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique (ERUDITE), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), UCL - SSH/IMMAQ/CORE - Center for operations research and econometrics, École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS-PSL), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL), Université Catholique de Louvain (UCL), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), and Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12)-Université Paris-Est Marne-la-Vallée (UPEM)
Subjects: JEL: I - Health, Education, and Welfare/I.I3 - Welfare, Well-Being, and Poverty/I.I3.I31 - General Welfare, Well-Being, conflict, Syrian war, Syrian War, JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J17 - Value of Life • Forgone Income, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, mortality, welfare, equivalent income, conict, measurement, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, JEL: N - Economic History/N.N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy/N.N3.N35 - Asia including Middle East
Abstract: This paper uses an equivalent income approach to quantify the domes-tic welfare loss due to the Syrian Civil War. Focusing on the (income, life expectancy) space, we show that the equivalent income has fallen by about 60 % in comparison to the pre-conflict level. We also find that the differential between the equivalent income and the standard income for 2016 lies between $75 and $144. Although this low willingness to pay for coming back to pre-conflict survival conditions can be explained by extreme poverty due to the War, the small gap between standard and equivalent incomes tends to question the extra value brought by the latter for the measurement of standards of living in situations of severe poverty. We examine some solutions to that puzzle, including a more general specification of the utility function, the shift from an ex ante approach (valuing changes in life expectancy) to an ex post approach (valuing changes in distributions of realized longevities), as well as considering population ethical aspects. None of those solutions is fully successful in solving the puzzle.
Published: 2017

30. Optimal fertility along the life cycle

Author: Pierre Pestieau, Gregory Ponthiere, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Center for Economic Policy Research (CEPR), CEPR, Paris-Jourdan Sciences Economiques (PSE), École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Paris School of Economics (PSE), ' Ce travail a bénéficié d'une aide de l'Etat gérée par l'Agence Nationale de la Recherche au titre du programme ' Investissements d'avenir ' portant la référence ANR-10-LABX-93-01'. 'This work was supported by the French National Research Agency, through the program Investissements d'Avenir, ANR-10--LABX-93-01', Université Catholique de Louvain = Catholic University of Louvain (UCL), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), and Centre National de la Recherche Scientifique (CNRS)-École des Ponts ParisTech (ENPC)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-École normale supérieure - Paris (ENS Paris)
Subjects: Early and late motherhoods, Economics and Econometrics, Labour economics, JEL: E - Macroeconomics and Monetary Economics/E.E1 - General Aggregative Models/E.E1.E13 - Neoclassical, media_common.quotation_subject, Reproduction (economics), Total fertility rate, Yield (finance), Fertility, Overlapping generations model, Social optimum, Physical capital, JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J13 - Fertility • Family Planning • Child Care • Children • Youth, 0502 economics and business, Economics, 050207 economics, 050205 econometrics, media_common, JEL: E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E21 - Consumption • Saving • Wealth, 05 social sciences, Fertility Overlapping générations, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Childbearing ages, 8. Economic growth, Cohort, Public finance
Abstract: We explore the optimal fertility age-pattern in a four-period OLG economy with physical capital accumulation. For that purpose, we firstly compare the dynamics of two closed economies, Early and Late Islands, which differ only in the timing of births. On Early Island, children are born from parents in young adulthood, whereas, on Late Island, children are born from parents in older adulthood. We show that, unlike on Early Island, there exists no stable stationary equilibrium on Late Island, which exhibits cyclical dynamics. We also characterize the social optimum in each economy, and show that Samuelson's Serendipity Theorem still holds. Finally, we study the dynamics and social optimum of an economy with interior fertility rates during the reproduction period. It is shown that various fertility age-patterns are compatible with the social optimum, as long as these yield the optimal cohort growth rate. The Serendipity Theorem remains valid in that broader demographic environment.
Published: 2013
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31. Plus ou moins mariés : l'évolution du mariage et des régimes matrimoniaux en France

Author: Nicolas Frémeaux, Marion Leturcq, Paris School of Economics (PSE), Paris-Jourdan Sciences Economiques (PSE), École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), and Université Catholique de Louvain = Catholic University of Louvain (UCL)
Subjects: Statistics and Probability, Economics and Econometrics, 050208 finance, Sociology and Political Science, 0502 economics and business, 05 social sciences, Régime matrimonial, 050207 economics, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, 16. Peace & justice, ComputingMilieux_MISCELLANEOUS
Abstract: Depuis la fin des annees 1980, les modes de vie en couple ont fortement evolue. Le mariage sous un regime de communaute de biens reduite aux acquets etait preponderant pour les couples formes entre 1980 et 1992, mais cette forme traditionnelle de vie en couple n'est pas la plus commune parmi les couples formes entre 1998 et 2010 en raison du recul du mariage mais aussi, pour les couples maries, du recours accru au regime matrimonial de la separation des biens. Cette evolution peut etre expliquee de deux facons. D'une part, l'augmentation du risque de divorce peut modifier les comportements des couples, a caracteristiques donnees de ces couples. D'autre part, ces caracteristiques des couples ont egalement evolue au cours de la periode, qu'il s'agisse de patrimoine, d'inegalites entre conjoints ou de l'offre de travail des femmes. Nous decomposons l'evolution du recours au mariage et a un regime de separation des biens afin de determiner quels facteurs semblent expliquer les evolutions des modes de vie en couple. Nous montrons que la baisse du recours au mariage s'explique principalement par une modification des comportements des couples, en particulier du fait que le lien entre patrimoine et mariage s'est attenue au fil des annees, alors que la banalisation du divorce a rendu le (re)mariage plus aise. L'evolution du recours a la separation de biens s'explique principalement par le changement des caracteristiques des couples, en particulier par l'augmentation du patrimoine des menages et des inegalites entre conjoints.
Published: 2013
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32. Longevity variations and the welfare state

Author: Gregory Ponthiere, Pierre Pestieau, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Paris Jourdan Sciences Economiques (PJSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique (ERUDITE), Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12)-Université Paris-Est Marne-la-Vallée (UPEM), Université Catholique de Louvain (UCL), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL), and École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS-PSL)
Subjects: Economics and Econometrics, Pension, Economic growth, Equity (economics), Public economics, media_common.quotation_subject, 05 social sciences, Geography, Planning and Development, 1. No poverty, Longevity, Welfare state, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Scarcity, Social protection, longevity, 0502 economics and business, 8. Economic growth, Economics, Life expectancy, Normative, 050207 economics, europe, 050205 econometrics, Demography, media_common
Abstract: Life expectancy at birth has more than doubled in Europe since the early 19th century. This demographic trend constitutes a major victory against scarcity, but raises also deep challenges to the Welfare State, concerning the sustainability and the equity of the social protection system. This paper surveys recent developments in the economic analysis of longevity, both at the positive and the normative levels. Taking mortality risks into account is shown to affect the study of the life cycle model significantly, in particular concerning the strength of life horizon effects. It raises also, at the level of normative foundations for policy-making, a dilemma between ex ante and ex post valuations. Finally, we explore the design of policy reforms under varying longevity, in fields including preventive and curative policies, education, pension, and wealth taxation.
Published: 2016
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33. Long-term care and capital accumulation: the impact of the State, the market and the family

Author: Emmanuel Thibault, Pierre Pestieau, Chiara Canta, Norwegian School of Economics and Business Administration, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Toulouse School of Economics (TSE), École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS)-Université Toulouse 1 Capitole (UT1), Université de Liège, Centre de Droit Economique et du Développement (CDED), Université de Perpignan Via Domitia (UPVD), Université Catholique de Louvain = Catholic University of Louvain (UCL), Université Toulouse 1 Capitole (UT1), and Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS)
Subjects: Macroeconomics, Economics and Econometrics, Labour economics, Public health insurance, media_common.quotation_subject, 05 social sciences, 1. No poverty, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Social insurance, Long-term care, Capital accumulation, 0502 economics and business, Family norms, Economics, Norm (social), 050207 economics, Private insurance, Public insurance, Welfare, 050205 econometrics, Public finance, media_common
Abstract: International audience; The rising level of long-term care (LTC) expenditures and their financing sources are likely to impact savings and capital accumulation and henceforth the pattern of growth. This paper studies how the joint interaction of the family, the market and the State influences capital accumulation and welfare in a society in which the assistance the children give to dependent parents is triggered by a family norm. We find that with a family norm in place, the dynamics of capital accumulation differ from those of a standard Diamond (Am Econ Rev 55:1126–1150, 1965) model with dependence. For instance, if the family help is sizeably more productive than other LTC financing sources, pay-as-you-go social insurance might be a complement to private insurance and foster capital accumulation.
Published: 2016
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34. Fair retirement under risky lifetime

Author: Fleurbaey, Marc, Leroux, Marie-Louise, Pestieau, Pierre, Ponthière, Grégory, Woodrow Wilson School and Center for Human Values, Princeton University, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Centre interuniversitaire sur le risque, les politiques économiques et l'emploi (CIRPEE), Centre Interuniversitaire sur le Risque, les Politiques Economiques et l'Emploi, Center for Economic Policy Research (CEPR), CEPR, Paris-Jourdan Sciences Economiques (PSE), École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Paris School of Economics (PSE), Ce travail a bénéficié d'une aide de l'Etat gérée par l'Agence Nationale de la Recherche au titre du programme « Investissements d'avenir » portant la référence ANR-10-LABX-93-01.This work was supported by the French National Research Agency, through the program Investissements d'Avenir, ANR-10--LABX_93-01., Université Catholique de Louvain = Catholic University of Louvain (UCL), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Université du Québec à Montréal (UQAM), and Université du Québec à Montréal = University of Québec in Montréal (UQAM)
Subjects: risky lifetime, mortality, labour supply, retirement, compensation, Retirement, JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J10 - General, Risky lifetime,Mortality,Labour supply,Retirement,Compensation, JEL: J - Labor and Demographic Economics/J.J2 - Demand and Supply of Labor/J.J2.J22 - Time Allocation and Labor Supply, fair retirement, Labour supply, Risky lifetime, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, jel:J10, JEL: I - Health, Education, and Welfare/I.I1 - Health/I.I1.I18 - Government Policy • Regulation • Public Health, jel:I14, jel:J22, jel:I18, Mortality, Compensation
Abstract: A premature death unexpectedly brings a life and a career to their end, leading to substantial welfare losses. We study the retirement decision in an economy with risky lifetime, and compare the laissez-faire with egalitarian social optima. We consider two social objectives: (1) the maximin on expected lifetime welfare (ex ante), allowing for a compensation for unequal life expectancies; (2) the maximin on realized lifetime welfare (ex post), allowing for a compensation for unequal lifetimes. The latter optimum involves, in general, decreasing lifetime consumption profiles, as well as raising the retirement age, unlike the ex ante egalitarian optimum. This result is robust to the introduction of unequal life expectancies and unequal productivities. Hence, the postponement of the retirement age can, quite surprisingly, be defended on egalitarian grounds --although the conclusion is reversed when mortality strikes only after retirement.
Published: 2016
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35. How to make the metropolitan area work? Neither big government, nor laissez-faire

Author: Stéphane Riou, Carl Gaigné, Jacques-François Thisse, Structures et Marché Agricoles, Ressources et Territoires (SMART), Institut National de la Recherche Agronomique (INRA)-AGROCAMPUS OUEST, CREATE, Centre de Recherche de l'Environnement, de l'Agroalimentaire, des Transports et de l'Énergie, Université Laval, Groupe d'analyse et de théorie économique (GATE Lyon Saint-Étienne), École normale supérieure - Lyon (ENS Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Centre National de la Recherche Scientifique (CNRS), Université Catholique de Louvain, State University - Higher School of Economics (HSE), Centre for Economic Policy Research, INRA Rennes (INRA Rennes), Institut National de la Recherche Agronomique (INRA), Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne (GATE Lyon Saint-Étienne), École normale supérieure de Lyon (ENS de Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet - Saint-Étienne (UJM)-Centre National de la Recherche Scientifique (CNRS), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Center for Research in Economic Analysis (CREA), Université du Luxembourg (Uni.lu), Center for Economic Policy Research (CEPR), CEPR, Université Catholique de Louvain (UCL), Beudon, Soledad, Structures et Marché Agricoles, Ressources et Territoires (SMART-LERECO), Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement (Institut Agro)-Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement (Institut Agro), Université Laval [Québec] (ULaval), AGROCAMPUS OUEST-Institut National de la Recherche Agronomique (INRA), Dao, Taï, and UCL - SSH/IMMAQ/CORE - Center for operations research and econometrics
Subjects: Suburbanization, Economics and Econometrics, metropolitan area,fiscal competition,local labor markets,suburbanization,administrative boundary,economic boundary, Tax competition, fiscal competition, media_common.quotation_subject, Public policy, local labor markets, jel:H41, administrative boundary, job decentralization, Politics, Laissez-faire, metropolitan area, fiscal competition, local labor markets, suburbanization, administrative boundary, economic boundary, 0502 economics and business, Economics, tax competition, 050207 economics, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, 050205 econometrics, media_common, economic boundary, limite administrative, emploi, Public economics, 05 social sciences, JEL: H - Public Economics/H.H4 - Publicly Provided Goods/H.H4.H41 - Public Goods, decentralisation, marché local du travail, jel:H71, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Metropolitan area, suburbanization, metropolitan area, JEL: R - Urban, Rural, Regional, Real Estate, and Transportation Economics/R.R1 - General Regional Economics/R.R1.R12 - Size and Spatial Distributions of Regional Economic Activity, JEL: H - Public Economics/H.H7 - State and Local Government • Intergovernmental Relations/H.H7.H71 - State and Local Taxation, Subsidies, and Revenue, employment, zone métropolitaine, jel:R12, Economic system, concurrence fiscale, Welfare, Big government, Finance
Abstract: Cet article a fait l'objet d'un WP CORE DISCUSSION PAPER 2013/65, voir lien ci-contreCet article a fait l'objet d'un WP GATE n°1318, voir lien ci-contre; We study how administrative boundaries and tax competition among asymmetric jurisdictions interact with the labor and land markets to determine the economic structure and performance of metropolitan areas. Contrary to general belief, cross-border commuting need not be welfare-decreasing in the presence of agglomeration economies that vary with the distribution of firms within the metropolitan area. Tax competition implies that the central business district is too small and prevents public policy enhancing global productivity to deliver their full impact. Although our results support the idea of decentralizing the provision of local public services by independent jurisdictions, they highlight the need of coordinating tax policies and the importance of the jurisdiction sizes within metropolitan areas.
Published: 2016
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36. Hawks and Doves in Segmented Markets: Profit Maximization with Varying Competitive Aggressiveness

Author: Claude d'Aspremont, Jacques Thépot, Rodolphe Dos Santos Ferreira, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Bureau d'Économie Théorique et Appliquée (BETA), Institut National de la Recherche Agronomique (INRA)-Université de Strasbourg (UNISTRA)-Université de Lorraine (UL)-Centre National de la Recherche Scientifique (CNRS), Laboratoire de recherche en gestion et économie (LARGE), Université de Strasbourg (UNISTRA)-L'europe en mutation : histoire, droit, économie et identités culturelles, Université de Strasbourg (UNISTRA)-Centre National de la Recherche Scientifique (CNRS)-Université de Strasbourg (UNISTRA)-Centre National de la Recherche Scientifique (CNRS), Université Catholique de Louvain = Catholic University of Louvain (UCL), Centre National de la Recherche Scientifique (CNRS)-Université de Strasbourg (UNISTRA)-Centre National de la Recherche Scientifique (CNRS)-Université de Strasbourg (UNISTRA), and Université de Lorraine (UL)-Université de Strasbourg (UNISTRA)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS)
Subjects: TheoryofComputation_MISCELLANEOUS, Statistics and Probability, Economics and Econometrics, JEL: L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L13 - Oligopoly and Other Imperfect Markets, media_common.quotation_subject, Segmented Markets, Consumer Price Discounting, Competition Regimes, [SHS]Humanities and Social Sciences, Competition (economics), Microeconomics, Order (exchange), 0502 economics and business, Economics, 050207 economics, Duopoly, ComputingMilieux_MISCELLANEOUS, media_common, Discounting, ComputingMilieux_THECOMPUTINGPROFESSION, Delegation, Profit maximization, 05 social sciences, Strategic Choice, Competitive Aggressiveness, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, JEL: D - Microeconomics/D.D4 - Market Structure, Pricing, and Design/D.D4.D43 - Oligopoly and Other Forms of Market Imperfection, 8. Economic growth, 050206 economic theory, Statistics, Probability and Uncertainty, JEL: L - Industrial Organization/L.L2 - Firm Objectives, Organization, and Behavior/L.L2.L21 - Business Objectives of the Firm, Social Sciences (miscellaneous)
Abstract: International audience; We consider a duopoly, each firm supplying a captive and a contested segment. Starting from two extreme formulations of the profit maximization objective, we introduce a parameterized class of managerial objective functions, involving price-quantity pairs as strategic variables but corresponding to different managerial attitudes. By specifying the parameters of competitive aggressiveness, we recover classical competition regimes. The model is extended to analyze the strategic choice of managerial aggressiveness, and to examine the implications of changes in the intensity of competition. In order to endogenize the competitive aggressiveness parameters, a more primitive price-quantity model introduces the possibility of consumer price discounting.; Nous considérons un marché de duopole, chaque entreprise servant un segment captif et un segment contesté. Partant de deux formulations extrêmes de l'objectif de maximisation du profit, nous introduisons une classe paramétrée de fonctions d'objectifs managériaux, qui toutes font intervenir des couples prix-quantités comme variables stratégiques mais qui correspondent à des attitudes managériales différentes. En spécifiant les paramètres d'agressivité concurrentielle, nous retrouvons les régimes de concurrence classiques. Le modèle est ensuite étendu afin d'analyser le choix stratégique de l'agressivité managériale et d'examiner les implications des changements de l'intensité de la concurrence. Un modèle plus fondamental en prix-quantités inclut la possibilité de rabais sur les prix de vente affichés, ce qui permet d'endogénéiser les paramètres d'agressivité concurrentielle.
Published: 2016
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37. Model predictive control, the economy, and the issue of global warming

Author: Carmen Camacho, Thierry Bréchet, Vladimir M. Veliov, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Centre d'économie de la Sorbonne (CES), Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS), Institute of Mathematical Methods in Economics, and Viena University of Technology
Subjects: Consumption (economics), Futures studies, Model predictive control, World economy, Economy, Global warming, Economics, General Decision Sciences, Context (language use), Management Science and Operations Research, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Optimal control, Free riding
Abstract: International audience; This study is motivated by the evidence of global warming, which is caused by human activity but affects the efficiency of the economy. We employ the integrated assessment Nordhaus DICE-2007 model (Nordhaus, A question of balance: economic modeling of global warming, Yale University Press, New Haven, 2008). Generally speaking, the framework is that of dynamic optimization of the discounted inter-temporal utility of consumption, taking into account the economic and the environmental dynamics. The main novelty is that several reasonable types of behavior (policy) of the economic agents, which may be non-optimal from the point of view of the global performance but are reasonable form an individual point of view and exist in reality, are strictly defined and analyzed. These include the concepts of "business as usual", in which an economic agent ignores her impact on the climate change (although adapting to it), and of "free riding with a perfect foresight", where some economic agents optimize in an adaptive way their individual performance expecting that the others would perform in a collectively optimal way. These policies are defined in a formal and unified way modifying ideas from the so-called "model predictive control". The introduced concepts are relevant to many other problems of dynamic optimization, especially in the context of resource economics. However, the numerical analysis in this paper is devoted to the evolution of the world economy and the average temperature in the next 150 years, depending on different scenarios for the behavior of the economic agents. In particular, the results show that the "business as usual", although adaptive to the change of the atmospheric temperature, may lead within 150 years to increase of temperature by 2°C more than the collectively optimal policy.
Published: 2011
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38. Competing for capital when labor is heterogeneous

Author: Jacques-François Thisse, Yasuhiro Sato, Paris-Jourdan Sciences Economiques (PJSE), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Center for Economic Policy Research (CEPR), CEPR, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Institute of Economic Research, Kyoto University [Kyoto], Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Graduate School of Environmental Studies [Nagoya], and Nagoya University
Subjects: Labour economics, Economics and Econometrics, Matching (statistics), Tax competition, Capital mobility, jel:F21, JEL: J - Labor and Demographic Economics/J.J3 - Wages, Compensation, and Labor Costs/J.J3.J31 - Wage Level and Structure • Wage Differentials, Monetary economics, Reverse home market effect, ﬁscal competition, local labor markets, capital mobility, JEL: H - Public Economics/H.H3 - Fiscal Policies and Behavior of Economic Agents/H.H3.H32 - Firm, 0502 economics and business, JEL: F - International Economics/F.F2 - International Factor Movements and International Business/F.F2.F21 - International Investment • Long-Term Capital Movements, Economics, 050207 economics, Local labor markets, 050205 econometrics, Fiscal competition, 05 social sciences, 1. No poverty, Redistribution (cultural anthropology), [SHS.ECO]Humanities and Social Sciences/Economics and Finance, jel:J31, jel:H32, ComputingMilieux_GENERAL, Tax harmonization, Capital (economics), 8. Economic growth, fiscal competition, local labor markets, capital mobility, Imperfect, Small country, Finance
Abstract: This paper investigates the impacts of capital mobility and tax competition in a setting with imperfect matching between firms and workers. The small country attracts less firms than the large one but accommodates a share of the industry that exceeds its capital share--a reverse home market effect. This allows the small country to be more aggressive and to set a higher tax rate than the large one, thus implying that tax competition reduces international inequalities. However, the large country always attains a higher utility than does the small country. Our model thus encapsulates both the "importance of being small" and the "importance of being large". Last, tax harmonization benefits to the small country but is detrimental to the large one.
Published: 2007
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39. Countries, regions and trade: On the welfare impacts of economic integration

Author: Kristian Behrens, Carl Gaigné, Gianmarco I.P. Ottaviano, Jacques-François Thisse, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Unité de recherche d'Économie et Sociologie Rurales (ESR), Institut National de la Recherche Agronomique (INRA), Università di Bologna [Bologna] (UNIBO), Fondazione Eni Enrico Mattei (FEEM), Fondazione Eni Enrico Mattei, Center for Economic Policy Research (CEPR), CEPR, Paris-Jourdan Sciences Economiques (PJSE), Centre National de la Recherche Scientifique (CNRS)-École des Ponts ParisTech (ENPC)-École des hautes études en sciences sociales (EHESS)-École normale supérieure - Paris (ENS Paris), Paris School of Economics (PSE), Behrens K., Gaigné C., Ottaviano G.I.P., Thisse J.-F., Université Catholique de Louvain = Catholic University of Louvain (UCL), Alma Mater Studiorum Università di Bologna [Bologna] (UNIBO), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), and Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE)
Subjects: Economic integration, Economics and Econometrics, AGGLOMERATION, Process (engineering), media_common.quotation_subject, TRADE COST, 0211 other engineering and technologies, Agglomeration, Economic geography, Regional integration, Trade costs, Transport costs, 02 engineering and technology, TRANSPORT COST, Trade cost, Economies et finances, JEL: F - International Economics/F.F1 - Trade/F.F1.F16 - Trade and Labor Market Interactions, 0502 economics and business, ECONOMIC GEOGRAPHY, Economics, REGIONAL INTEGRATION, 050207 economics, JEL: F - International Economics/F.F1 - Trade/F.F1.F12 - Models of Trade with Imperfect Competition and Scale Economies • Fragmentation, Trade barrier, media_common, International mobility, Economies of agglomeration, 05 social sciences, 021107 urban & regional planning, International economics, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, JEL: R - Urban, Rural, Regional, Real Estate, and Transportation Economics/R.R1 - General Regional Economics/R.R1.R12 - Size and Spatial Distributions of Regional Economic Activity, Economies and finances, 8. Economic growth, Welfare, Finance, AGGLOMERATION, ECONOMIC GEOGRAPHY, REGIONAL INTEGRATION, TRADE COST, TRANSPORT COST
Abstract: CB 009613 JEL F12; F16; R12; We study the impact of falling international trade costs and falling national transport costs on the economic geography of countries involved in an integration process. Each country is formed by two regions between which labor is mobile, whereas there is no international mobility. Goods can be traded both nationally and internationally at positive, but different, costs. A decrease in trade costs and/or in transport costs has a direct impact on prices and wages in both countries. This allows us to account for the impact of changes in these parameters on the economic geography and welfare of each country. We show that, as trade barriers fall, the benefits of integration come after its costs. We also show that national transport policies are of the beggar-thy-neighbour type. On both counts, policy coordination is required in the process of economic integration.
Published: 2007
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40. Longévité différentielle et redistribution : enjeux théoriques et empiriques

Author: Marie-Louise Leroux, Pierre Pestieau, Gregory Ponthiere, Centre interuniversitaire sur le risque, les politiques économiques et l'emploi (CIRPEE), Centre Interuniversitaire sur le Risque, les Politiques Economiques et l'Emploi, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Paris School of Economics (PSE), Paris-Jourdan Sciences Economiques (PSE), École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Center for Economic Policy Research (CEPR), CEPR, Toulouse School of Economics (TSE), École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS)-Université Toulouse 1 Capitole (UT1), Université Paris-Est (UPE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées, École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Université Toulouse 1 Capitole (UT1), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS), and Bauer, Caroline
Subjects: Environmental Engineering, JEL: I - Health, Education, and Welfare/I.I3 - Welfare, Well-Being, and Poverty/I.I3.I31 - General Welfare, Well-Being, 05 social sciences, Systèmes de retraite, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, jel:H31, jel:H53, jel:I31, Mortalité différentielle, 0502 economics and business, systèmes de retraite, mortalité différentielle, JEL: H - Public Economics/H.H3 - Fiscal Policies and Behavior of Economic Agents/H.H3.H31 - Household, 050207 economics, JEL: H - Public Economics/H.H5 - National Government Expenditures and Related Policies/H.H5.H53 - Government Expenditures and Welfare Programs, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Systèmes de retraite,Mortalité différentielle, longévité, ComputingMilieux_MISCELLANEOUS, 050205 econometrics
Abstract: Dans cet article, nous étudions l’impact des différences de longévité sur la conception des politiques publiques, en particulier celles liées au départ à la retraite. Nous montrons premièrement qu’alors même que l’espérance de vie a augmenté de manière très importante tout au long du siècle dernier, il subsiste encore de fortes disparités. Deuxièmement, nous étudions d’un point de vue normatif comment les différences de longévité sont généralement prises en compte dans les modèles de cycle de vie et montrons que certaines hypothèses peuvent avoir des implications fortes en terme de redistribution intragénérationnelle. Nous identifions au moins trois arguments en faveur d’une redistribution vers les agents à faible longévité : l’aversion à l’inégalité multipériodes, l’aversion au risque de mortalité et la compensation pour des caractéristiques dont les agents ne sont pas responsables. Nous étendons ensuite notre analyse de manière à tenir compte du fait que les individus puissent être en partie responsables de leur longévité. Finalement, nous lions ces résultats aux débats actuels sur la réforme des systèmes de retraite. Nous montrons qu’en général, parce que les pensions de retraite sont conditionnelles à la survie des bénéficiaires, les systèmes de retraite publics vont redistribuer des ressources des agents dont la durée de vie est courte vers ceux dont la durée de vie est longue. Nous fournissons des pistes de réformes qui viseraient à mieux prendre en compte ces différences de longévité et en particulier, celles relatives à la création d’une « rente longévité » telle que souhaitée par le Comité d’Amours et au développement de l’assurance autonomie, qu’elle soit privée ou publique.
Published: 2015
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41. Allocation rules for coalitional network games

Author: Vincent Vannetelbosch, Jean-François Caulier, Ana Mauleon, Centre d'économie de la Sorbonne (CES), Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), CEREC, Université Saint-Louis - Bruxelles, UCL - SSH/IMMAQ/CORE - Center for operations research and econometrics, USL-B - Centre de recherche en Economie (CEREC), and FUSL - Autre
Subjects: Sociology and Political Science, jel:D85, MathematicsofComputing_GENERAL, Network structure, Set (abstract data type), networks, coalition structures, allocation rules, 0502 economics and business, Economics, 050207 economics, General Psychology, 050205 econometrics, Structure (mathematical logic), jel:C71, 05 social sciences, jel:A14, General Social Sciences, TheoryofComputation_GENERAL, allocation rules, Cooperative game theory, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Value (economics), Coalition, Statistics, Probability and Uncertainty, Networks, Mathematical economics, cooperative game theory
Abstract: International audience; Coalitional network games are real-valued functions defined on a set of players organized into a network and a coalition structure. We adopt a flexible approach assuming that players organize themselves the best way possible by forming the efficient coalitional network structure. We propose two allocation rules that distribute the value of the efficient coalitional network structure: the atom-based flexible coalitional network allocation rule and the player-based flexible coalitional network allocation rule.
Published: 2015
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42. Efficiency in overlapping generations economies with longevity choices and fair annuities

Author: Marie-Louise Leroux, Julio Davila Muro, Center of Operation Research and Econometrics [Louvain] (CORE), and Université Catholique de Louvain = Catholic University of Louvain (UCL)
Subjects: Economics and Econometrics, media_common.quotation_subject, 1. No poverty, Longevity, Subsidy, Representative agent, Overlapping generations model, Competitive equilibrium, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Microeconomics, Incentive, 8. Economic growth, Economics, Population growth, Government budget, ComputingMilieux_MISCELLANEOUS, media_common
Abstract: When individuals can influence their life-expectancies and save in annuities, suboptimal savings result from the lack of incentives to choose the optimal longevity, even when annuity returns can be made contingent to longevity-related choices. Specifically, the golden rule steady state maximizing the representative agent utility cannot be attained as a competitive equilibrium under laissez-faire, even with actuarially fair annuities contingent to longevity-enhancing choices. In order to decentralize through markets the golden rule, longevity-enhancing expenditures need to be taxed if the steady state old-age consumption exceeds the annuitized capital return, and subsidized otherwise—the government budget being balanced through lump-sum transfers or taxes. Interestingly, with positive population growth the expected net contribution is negative when longevity-enhancing expenditures are taxed, and positive when subsidized.
Published: 2015
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43. Long-Term Care and Births Timing

Author: Gregory Ponthiere, Pierre Pestieau, UCL - SSH/IMMAQ/CORE - Center for operations research and econometrics, Bauer, Caroline, Center for Economic Policy Research (CEPR), CEPR, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Paris-Jourdan Sciences Economiques (PSE), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique (ERUDITE), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), École normale supérieure - Paris (ENS-PSL), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS-PSL), Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12)-Université Paris-Est Marne-la-Vallée (UPEM), Université Catholique de Louvain (UCL), Centre National de la Recherche Scientifique (CNRS)-École des Ponts ParisTech (ENPC)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-École normale supérieure - Paris (ENS Paris), Paris Jourdan Sciences Economiques (PJSE), Université Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), and Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS-PSL)
Subjects: Adult, Parents, family policy, Opportunity cost, JEL: E - Macroeconomics and Monetary Economics/E.E1 - General Aggregative Models/E.E1.E13 - Neoclassical, Decision Making, Overlapping generations model, Affect (psychology), birth timing, JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J13 - Fertility • Family Planning • Child Care • Children • Youth, 0502 economics and business, Economics, JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J14 - Economics of the Elderly • Economics of the Handicapped • Non-Labor Market Discrimination, Humans, Parent-Child Relations, 050207 economics, Long term care, Child, Socioeconomics, Empirical evidence, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Social optimum, Aged, Demography, 050205 econometrics, Aged, 80 and over, birth timing,childbearing age,family policy,Long term care,OLG models, childbearing age, Health Policy, Postponement, 05 social sciences, Age Factors, Public Health, Environmental and Occupational Health, Middle Aged, Models, Theoretical, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Long-Term Care, Long-term care, OLG models, Elderly parents
Abstract: Due to the ageing process, the provision of long-term care (LTC) to the dependent elderly has become a major challenge of our epoch. But at the same time, our societies are characterized, since the 1970s, by a significant postponement of births. This paper aims at examining the impact of those demographic trends on the optimal family policy. We develop a four-period OLG model where individuals, who receive children's informal LTC at the old age, must choose, when being young, how to allocate births along their lifecycle. It is shown that early children provide more LTC to their elderly parents than late children, because of the lower opportunity cost of providing LTC when being retired. In comparison with the social optimum, individuals have, at the laissez-faire, too few children early in their life, and too many later on in their life. The decentralization of the first-best optimum requires thus to subsidize early births. We study also the design of the optimal subsidy on early births in a second-best setting. Its level depends on efficiency and equity issues, as well as on its incidence on the long-run population composition and on LTC provision.
Published: 2015
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44. Inversión estratégica y fluctuaciones endógenas

Author: d'Aspremont, Claude, dos Santos Ferreira, Rodolphe, Gérard-Varet, Louis-André, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Bureau d'Économie Théorique et Appliquée (BETA), Institut National de la Recherche Agronomique (INRA)-Université de Strasbourg (UNISTRA)-Université de Lorraine (UL)-Centre National de la Recherche Scientifique (CNRS), Catolica Lisbon School of Business And Economics, Partenaires INRAE, Groupement de Recherche en Économie Quantitative d'Aix-Marseille (GREQAM), and École des hautes études en sciences sociales (EHESS)-Aix Marseille Université (AMU)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS)
Subjects: JEL: E - Macroeconomics and Monetary Economics/E.E3 - Prices, Business Fluctuations, and Cycles/E.E3.E32 - Business Fluctuations • Cycles, JEL: E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E22 - Investment • Capital • Intangible Capital • Capacity, JEL: L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change • Industrial Price Indices, [SHS.ECO]Humanities and Social Sciences/Economics and Finance
Abstract: We study an overlapping generations multisectoral economy, where firms in each sector live two periods, strategically investing in the first and producing under Cournot competition in the second period. Equilibrium conditions for the two-stage games, and on the product, labor and capital markets, determine the number of active firms and result in a two-equation dynamic system. The possibility of robust endogenous fluctuations coming from strategic investment is demonstrated by contrast with a model without strategic investment and with free entry.; En este artículo estudiamos una economía multidisciplinar con producciones superpuestas, donde las empresas de cada rama experimentan dos períodos, invirtiendo estratégicamente en el primero y produciendo bajo el régimen de competencia de Cournot en el segundo. Los equilibrios de los juegos de dos etapas, así como en los mercados de productos, de trabajo y de capital, determinan el número de empresas en cada período y un sistema dinámico de dos ecuaciones. Se destaca la aparición de fuertes fluctuaciones endógenas como consecuencia de la inversión estratégica, en contraste con un modelo sin inversión estratégica y con entrada libre.; Nous étudions une économie multi-branches à générations imbriquées, où les entreprises de chaque branche vivent deux périodes, investissant stratégiquement en première et produisant sous régime de concurrence cournotienne en seconde période. Les équilibres des jeux en deux étapes, ainsi que sur les marchés des produits, du travail et du capital, déterminent le nombre d’entreprises à chaque période et un système dynamique à deux équations. L’émergence de fluctuations endogènes robustes comme conséquence de l’investissement stratégique est mise en lumière par contraste avec un modèle sans investissement stratégique et avec libre entrée.
Published: 2015
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45. United but (un)equal: human capital, probability of divorce and the marriage contract

Author: Helmuth Cremer, Kerstin Roeder, Pierre Pestieau, Toulouse School of Economics (TSE), Université Toulouse 1 Capitole (UT1), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS), Groupe de recherche en économie mathématique et quantitative (GREMAQ), Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-Université Toulouse 1 Capitole (UT1), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées, Center for Economic Policy Research (CEPR), CEPR, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Paris-Jourdan Sciences Economiques (PSE), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Ludwig-Maximilians-Universität München (LMU), École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS)-Université Toulouse 1 Capitole (UT1), Université Catholique de Louvain (UCL), Centre National de la Recherche Scientifique (CNRS)-École des Ponts ParisTech (ENPC)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-École normale supérieure - Paris (ENS Paris), and École normale supérieure - Paris (ENS Paris)-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)
Subjects: Economics and Econometrics, Labour economics, JEL: K - Law and Economics/K.K3 - Other Substantive Areas of Law/K.K3.K36 - Family and Personal Law, Price elasticity of supply, Human capital, jel:J24, JEL: J - Labor and Demographic Economics/J.J2 - Demand and Supply of Labor/J.J2.J24 - Human Capital • Skills • Occupational Choice • Labor Productivity, Divorce, post-marital education, marriage contract, divorce, Specialization (functional), 0502 economics and business, Economics, Distortion (economics), 050207 economics, Marriage, B- ECONOMIE ET FINANCE, Demography, Social policy, 050208 finance, Risk aversion, 05 social sciences, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, jel:D13, post-marital education, marriage contract, divorce, Spouse, 8. Economic growth, JEL: D - Microeconomics/D.D1 - Household Behavior and Family Economics/D.D1.D13 - Household Production and Intrahousehold Allocation, jel:K36
Abstract: This paper studies how the risk of divorce affects the human capital decisions of a young couple. We consider a setting where complete specialization (one of the spouses uses up all the education resources) is optimal with no divorce risk. Symmetry in education (both spouses receive an equal amount of education) then acts like an insurance device in case of divorce particularly when the institutions do not compensate for differences in earnings. But, at the same time symmetry in education is less efficient than the extreme specialization. This is the basic tradeoff underlying our analysis. We show that the symmetric allocation will become more attractive as the probability of divorce increases, if risk aversion is high and/or labor supply elasticity is low. However, it is only a “second-best” solution as the insurance protection is achieved at the expense of an efficiency loss. Efficiency can be restored through suitably designed marriage contracts because they can provide the appropriate insurance against divorce to a couple who opts for specialization. Finally, we study how the (economic) use of marriage is affected by the possibility of divorce.
Published: 2015
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46. PAYG pension systems with capital mobility

Author: Gwanaël Piaser, Motohiro Sato, Pierre Pestieau, Paris-Jourdan Sciences Economiques (PJSE), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Center of Research in Public Economics and Population Economics (CREPP), Université de Liège, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Center for Economic Policy Research (CEPR), CEPR, University of Ca’ Foscari [Venice, Italy], and Hitotsubashi University
Subjects: Economics and Econometrics, Pension, 05 social sciences, Small open economy, 1. No poverty, Redistribution (cultural anthropology), [SHS.ECO]Humanities and Social Sciences/Economics and Finance, JEL: H - Public Economics/H.H5 - National Government Expenditures and Related Policies/H.H5.H55 - Social Security and Public Pensions, Microeconomics, Capital accumulation, JEL: H - Public Economics/H.H8 - Miscellaneous Issues/H.H8.H87 - International Fiscal Issues • International Public Goods, Accounting, Capital (economics), 8. Economic growth, 0502 economics and business, Economics, Open economy, 050207 economics, Autarky, Capital market, Finance, 050205 econometrics
Abstract: This paper studies the design of an optimal pension scheme in an OLG and open economy model. The pension scheme provides a flat rate benefit and is based on the PAYG principle. It thus combines inter- and intra-generational redistribution. In this setting a number of symmetric economies are connected by an open and perfect capital market. When this number is very large, we have the small open economy case; when it is reduced to one, we have the case of autarky or perfect coordination. As the number of countries increases, there is more intragenerational redistribution, but less capital accumulation.
Published: 2006
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47. Optimal Control in Infinite Horizon Problems: A Sobolev Space Approach

Author: Cagri Saglam, Raouf Boucekkine, Cuong Le Van, Centre d'économie de la Sorbonne (CES), Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS), Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Universite Bilkent [Ankara], and Bilkent University [Ankara]
Subjects: Economics and Econometrics, Transversality, jel:C61, Order ideal,Optimal control,Sobolev spaces,Transversality conditions, Optimal control, Sobolev spaces, transversality conditions, order ideal, order ideal,Optimal control,Sobolev spaces,transversality conditions,order ideal.,Contrôle optimal,espaces de Sobolev,condition de transversalité,l'idéal pour l'ordre, Ramsey model, [MATH.MATH-FA]Mathematics [math]/Functional Analysis [math.FA], Pontryagin's minimum principle, Sobolev inequality, 0502 economics and business, Order (group theory), Applied mathematics, 050207 economics, Order ideal, 050205 econometrics, Mathematics, Ideal (set theory), optimal control, Sobolev spaces, transversality conditions, order ideal, 05 social sciences, Mathematical analysis, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Optimal control, Sobolev space, Sobolev spaces, Infinite horizon, [MATH.MATH-OC]Mathematics [math]/Optimization and Control [math.OC], Transversality conditions
Abstract: In this paper, we make use of the Sobolev space W1,1(R+, Rn) to derive at once the Pontryagin conditions for the standard optimal growth model in continuous time, including a necessary and sufficient transversality condition. An application to the Ramsey model is given. We use an order ideal argument to solve the problem inherent to the fact that L1 spaces have natural positive cones with no interior points., Dans ce papier nous utilisons les espaces de Sobolev W1,1 pour obtenir les conditions de Pontryagin pour des problèmes de croissance optimale standard en temps continu, avec une condition nécessaire et suffisante de transversalité. Le résultat est ensuite appliqué au modèle de Ramsey. Nous utilisons un argument basé sur l'idéal pour l'ordre, dans les espaces L1 qui ont comme propriété d'avoir un cône positif sans points intérieurs.
Published: 2006
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48. Retirement age and health expenditures

Author: Cremer, Helmuth, Lozachmeur, Jean-Marie, Pestieau, Pierre, Groupe de recherche en économie mathématique et quantitative (GREMAQ), Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-Université Toulouse 1 Capitole (UT1), Institut d'économie industrielle (IDEI), Université Toulouse 1 Capitole (UT1), Paris-Jourdan Sciences Economiques (PJSE), Centre National de la Recherche Scientifique (CNRS)-École des Ponts ParisTech (ENPC)-École des hautes études en sciences sociales (EHESS)-École normale supérieure - Paris (ENS Paris), Center of Research in Public Economics and Population Economics (CREPP), Université de Liège, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Center for Economic Policy Research (CEPR), CEPR, Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées, Institut d'Economie Industrielle (IDEI), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Université Catholique de Louvain = Catholic University of Louvain (UCL), ProdInra, Migration, Groupe de recherche en économie mathématique et quantitative, Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS), Center for Operations Research and Econometrics, Centre de Recherche en Economie Publique, and Partenaires INRAE
Subjects: HEALTH EXPENDITURES, RETIREMENT AGE, [SHS] Humanities and Social Sciences, sense organs, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, skin and connective tissue diseases, B- ECONOMIE ET FINANCE, [SHS]Humanities and Social Sciences
Abstract: We study the design of pension benefi ts and contributions when an individual’s health status depends on his consumption of health services. Health services can be subsidized and their uniform public provision is also considered. We show that the second-best policy induces early retirement and that health expenditures ought to be subsidized under plausible assumptions. When only linear subsidies are available, the case for uniform public provision of health services appears to be quite strong., Cet article étudie la structure optimale des cotisations et prestations de retraite lorsque l’état de santé des individus détermine l’âge de cessation d’activité et dépend de la consommation de soins de santé. Nous montrons que l’optimum de second rang est caractérisé par une retraite précoce et une subvention sur les dépenses de santé. Quand cette subvention ne peut être que linéaire, la fourniture en nature des biens de soins de santé est souvent désirable.
Published: 2006

49. Départ à la retraite et taxation optimale

Author: Helmuth Cremer, Pierre Pestieau, Jean-Marie Lozachmeur, Center of Research in Public Economics and Population Economics (CREPP), Université de Liège, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain = Catholic University of Louvain (UCL), Département et Laboratoire d'Economie Théorique et Appliquée (DELTA), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS), Institut d'Economie Industrielle (IDEI), Université Toulouse 1 Capitole (UT1), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées, Groupe de recherche en économie mathématique et quantitative (GREMAQ), Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-Université Toulouse 1 Capitole (UT1), Université Catholique de Louvain (UCL), École normale supérieure - Paris (ENS Paris)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS), Institut d'économie industrielle (IDEI), Vella, Corinne, Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-École normale supérieure - Paris (ENS Paris), and Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)
Subjects: 060106 history of social sciences, Disability testing, retirement age, disability insurance, disability testing, jel:E62, 05 social sciences, 1. No poverty, retraite, invalidité, audit, 06 humanities and the arts, Retirement age, Audit, jel:H55, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, jel:H23, Invalidité, 8. Economic growth, 0502 economics and business, Political Science and International Relations, 0601 history and archaeology, Disability insurance, 050207 economics, Retraite
Abstract: It is often argued that implicit taxation on continued activity of elderly workers is responsible for the widely observed trend towards early retirement. In a world of laissez-faire or of first-best efficiency, there would be no such implicit taxation. This raises the question of whether a bias in the benefit formula in favor of early retirement is necessarily the sign of a bad policy. We show that this implicit tax on potsponed retirement can be due to the desire by public authorities of using social security for redistribution when non-distortionary tools are not available. We also examine possible ways to mitigate these distorsions, for instance, through disability testing.; Pour expliquer les départs précoces à la retraite, les économistes utilisent le concept de taxation implicite sur tout prolongement de l'activité. De là à proposer que l'on élimine cette taxe, il n'y qu'un pas à franchir. Cette contribution montre que si le système de retraite se veut redistributif et que le gouvernement n'observe pas certaines caractéristiques associées aux individus, une certaine taxe implicite sur l'âge de la retraite est inévitable. Notre analyse étudie aussi les moyens de limiter cette taxe implicite.
Published: 2005

50. Voting on Pensions with Endogenous Retirement Age

Author: Georges Casamatta, Helmuth Cremer, Pierre Pestieau, Groupe de recherche en économie mathématique et quantitative (GREMAQ), Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-Université Toulouse 1 Capitole (UT1), Center of Research in Public Economics and Population Economics (CREPP), Université de Liège, Center of Operation Research and Econometrics [Louvain] (CORE), Université Catholique de Louvain (UCL), Département et Laboratoire d'Economie Théorique et Appliquée (DELTA), École normale supérieure - Paris (ENS Paris)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS), Center for Economic Policy Research (CEPR), CEPR, Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées, Université Catholique de Louvain = Catholic University of Louvain (UCL), École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS), Lieux, Identités, eSpaces, Activités (LISA), Centre National de la Recherche Scientifique (CNRS)-Université Pascal Paoli (UPP), Toulouse School of Economics (TSE), Université Toulouse 1 Capitole (UT1), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-Institut National de la Recherche Agronomique (INRA)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS), Paris-Jourdan Sciences Economiques (PJSE), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS), Vella, Corinne, Université Pascal Paoli (UPP)-Centre National de la Recherche Scientifique (CNRS), École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS)-Université Toulouse 1 Capitole (UT1), Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-École normale supérieure - Paris (ENS Paris), and Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)
Subjects: Social security, Economics and Econometrics, Labour economics, majority voting, retirment age, social security, Tax rate, Tax credit, Majority voting, Accounting, 0502 economics and business, Economics, 050207 economics, Distortion (economics), 050208 finance, jel:D90, 05 social sciences, jel:D72, Tax basis, Retirement age, jel:H55, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, JEL: H - Public Economics/H.H5 - National Government Expenditures and Related Policies/H.H5.H55 - Social Security and Public Pensions, 8. Economic growth, Payroll tax, State income tax, Deferred tax, JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O4 - Economic Growth and Aggregate Productivity/O.O4.O41 - One, Two, and Multisector Growth Models, Finance, Indirect tax
Abstract: International audience; It is often argued that the observed trend towards early retirement is due mainly to the implicit tax imposed on continued activity of elderly workers. We study the relevance of such a distortion in a political economy model with endogenous age of retirement. The setting is a two-period overlapping generations model. Individuals differ in their productivity. In the first period they work a fixed amount of time; in the second, they choose when to retire and then receive a flat rate pension benefit. Pensions are financed by a payroll tax on earnings in the first and in the second period of life. Such a tax is non distortionary in the first period; it is distortionary in the second period. We allow for some rebating of the second period tax. Individuals vote on the level of the payroll tax given the rebate which can range from 0 (biased system) to 100% (neutral system). We provide sufficient conditions for the existence of a voting equilibrium and study its properties. Under these conditions, high tax rates are supported by all the old and by low productivity young individuals. We show that the pivotal voter is a young individual. The number of young individuals who have higher wage than the pivotal voter equals half the total population. We also show that the introduction of a bias increases the political support for the pension system. Finally, we study the simultaneous determination of the bias and the tax rate through a voting procedure and show that the equilibrium (if any) implies a bias which is always positive and may or not be larger than one.
Published: 2005
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