Portail HAL Paris School of Economics (PSE)
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Balanced growth and degrowth with human capital
No full textInternational audienceIn a simple discrete-time version of Lucas (1988) we find that the Balanced Growth Path (BGP) is always the unique optimal planner’s solution: with linear or strictly concave production functions, with unbounded utility functions, with or without human capital depreciation. When the ”speed” of human capital accumulation is high, the optimal working time is constant and below its upper bound. Capital grows at a constant factor, but degrowth is also possible when this factor is less one (under positive capital depreciation). When this speed is low, optimal working time is at its boundary and capital declines at its depreciation factor (degrowth)
Is it sensible to invest in home energy renovation?
No full textTo accelerate the energy renovation of buildings (housing and tertiary) necessary to achieve carbon neutrality by 2050, the French government has launched an energy renovation plan for buildings. This plan allocates funds across different subsidy and aid mechanisms for housing renovation. What is the impact of these investment subsidies for energy renovation on such investment and on the consumption and savings of a home-owning household that is not in fuel poverty? To answer this question, we develop a two-period, two-goods model that integrates “essential baskets”, i.e., baskets of goods (with a “minimum energy” level and an “essential composite good”). We confirm that the investment subsidy for energy renovation is effective if it is targeted. However, this targeting should not be based solely on income. Indeed, we highlight non-monetary side effects as one of the key parameters of policy effectiveness. To illustrate our remarks, we estimate and calibrate the parameters ofthe model with data from French households that only use electricity as an energy source for their homes
Managing Relational Contracts
No full textInternational audienceRelational contracts are typically modeled as being between a principal and an agent, such as a firm owner and a supplier. Yet, in a variety of organizations, relationships are overseen by an intermediary such as a manager. Such arrangements open the door for collusion between the manager and the agent. This paper develops a theory of such managed relational contracts. We show that managed relational contracts differ from principal–agent ones in important ways. First, kickbacks from the agent can help solve the manager’s commitment problem. When commitment is difficult, this can result in higher agent effort than the principal could incentivize directly. Second, making relationships more valuable enables more collusion and hence can reduce effort. We also analyze the principal’s delegation problem and show that she may or may not benefit from entrusting the relationship to a manager
Mapping the global geography of shell companies
No full textPublication parue dans la note Eutax observatory December 2023This note examines the global prevalence and distribution of shell companies, which are often used for illicit financial activities like tax evasion. Using business registry data for over 200 jurisdictions, including individual US states, we construct an indicator of shell company prevalence based on the number of registered companies per capita. We find that known tax havens like the British Virgin Islands and the Cayman Islands have extremely high rates of company presence per adult. Zooming in on Europe reveals Estonia as a lesser-known host for shell companies, besides flagging known conduit countries like Luxembourg and Cyprus. A unique decomposition of US states also shows Delaware and Wyoming are potentially hosting a large number of shell companies. Indicative for the role of shell companies in international tax evasion, our shell company prevalence indicator correlates with jurisdiction characteristics catering tax evasion, such as low corporate tax rate and aggressive tax treaties
Using payroll taxes as a redistribution tool
No full textInternational audiencePayroll taxes are usually designed to fund social insurance and not to contribute directly to redistribution. Over the last fifty years, France has modified dramatically the schedule of payroll taxation, turning it into the most progressive part of its tax system. Using administrative data and detailed microsimulation model of labor income taxation, we show that pretax wage (or labor cost) inequality measured by the P90/P10 ratio has increased by 15.4%, while net wage inequality has actually decreased by 18.9% over the 1967–2019 period. This reduction in wage inequality can be largely attributed to the policy mix of reductions of employer payroll taxes for low wage earners joined with minimum wage increases. We discuss whether this unusual French experiment carries lessons for other countries
L'impact économique de l'immigration des femmes.: Table ronde sur Les femmes sont-elles des migrantes comme les autres ?
No full textInternational audienc
Disequilibrium propagation of quantity constraints: application to the COVID lockdowns
No full textInternational audienceThis paper develops a network economy model to study the propagation of the COVID lockdown shock. Firms are related to each other through buyer–seller relations in the market for intermediate inputs. Firms choose production levels and input combinations using prices that emerge from local interactions. Nothing forbids trade at out-of-equilibrium prices. In such a setting, disequilibrium spills over from one market to another due to the interconnections between markets. These disequilibrium dynamics are capable of generating unemployment when workers released by contracting firms are not frictionlessly absorbed by expanding firms. We calibrate the model to the US economy using a data set with more than 200,000 buyer–seller relations between about 70,000 firms. Computational experiments on the calibrated economy suggest that the COVID lockdown generates a sizeable decline in GDP. The endogenously generated unemployment dynamics is a primary determinant of the cost of the lockdown
How Effective are Female Role Models in Steering Girls Towards Stem? Evidence from French High Schools
No full textInternational audienceWe show in a large-scale field experiment that a brief exposure to female role models working in scientific fields affects high school students’ perceptions and choice of undergraduate major. The classroom interventions reduced the prevalence of stereotypical views on jobs in science and gender differences in abilities. They also made high-achieving girls in Grade 12 more likely to enrol in selective and male-dominated STEM programs in college. Comparing treatment effects across the 56 role model participants, we find that the most effective interventions are those that improved students’ perceptions of STEM careers without overemphasizing women’s under-representation in science
Are your labor shares set in Beijing? The view through the lens of global value chains
No full textInternational audienceWe study the evolution of labor shares in 1995-2014, while taking into account international trade based on value added concepts. Declines in labor shares accelerate in 2001-2007, concurrently with global value chain (GVC) participation, after which there is no trend for both. We develop a gravity-based instrument for GVC participation and find that the acceleration in the decline in labor shares is caused by increased intensity of forward GVC participation. The insertion of China into GVCs has a disproportionally large effect through this mechanism. Declines in labor shares are shouldered mostly by less skilled workers in fabrication functions. Relatively capital abundant countries participate more in forward GVCs linkages, which is associated with greater upstreamness within GVCs and increases in capital intensity. Forward GVC participation is associated with international vertical integration of both upstream intermediate input production and of offshoring of downstream assembly
