Calendrier du 03 décembre 2018
Roy Seminar (ADRES)
Du 03/12/2018 de 17:00 à 18:30
salle R1-09, campus Jourdan - 75014 Paris
SAHUGUET Nicolas (HEC Montréal)
On the Optimality of Closed Lists under Proportional Representation
écrit avec Benoit Crutzen and Sabine Flamand
A large number of democracies rely at least partially on closed-list proportional representation for their legislative elections. With closed lists, voters can only vote for a party, not candidates. The literature often associates closed lists with perverse incentives for individual candidates. We reconsider this argument in a model of a contest between teams for multiple individual prizes. We show that closed lists can actually maximize a party's electoral success.
Our finding is robust to allowing for the introduction of biases in the contest due to voter ideological preferences, having more than two parties competing in the election, candidates also caring about their party winning a majority of legislative seats and allowing parties to offer lists with more candidates than the number of available prizes.
Du 03/12/2018 de 12:45 à 13:45
Salle R2.01, 48 Bd Jourdan 75014 Paris
Régulation et Environnement
Du 03/12/2018 de 12:00 à 13:00
salle R1-13, campus Jourdan, 75014 Paris
POZZI Andrea (EIEF)
The Cost of Steering in Financial Markets: Evidence from the Mortgage Market
écrit avec Leonardo Gambacorta, Luigi Guiso, Paolo Mistrulli and Anton Tsoy
Many households lack sophistication required to make complex financial decisions and
can be steered by intermediaries to certain financial products via informative or distorted
advice, advertisement, shrouding, etc. We build a model of the mortgage market in which
banks attain their optimal mortgage portfolio by both setting rates and steering their clientele.
“Sophisticated” households know which mortgage type is best for them; “naive” are
susceptible to bank’s steering. Using data on the universe of Italian mortgages, we estimate
the model and quantify the welfare implications of steering in this market. The average
cost of the distortion is equivalent to an increase in the annual mortgage payment by 11%.
However, since steering often also conveys information about mortgages, restricting steering
results in a loss of 998 euros per year on average. A financial literacy campaign is beneficial
for naive households, but hurts sophisticated ones.