Calendrier du 11 mars 2019
Roy Seminar (ADRES)
Du 11/03/2019 de 17:00 à 18:30
Salle R1-09, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
EROL Selman (CMU)
Network Hazard and Bailouts
This paper characterizes strongly stable networks under general threshold contagion. Among other applications, the theory is applied to interbank lending and financial contagion wherein a government can intervene to stop contagion. In the absence of intervention, banks form disjoined clusters to minimize contagion. In the presence of intervention, banks become less concerned with the counterparties of their counterparties, which we dub network hazard. Network hazard allows some banks to become systemically important and gives the network a core-periphery structure. The counterparty risk of a large part of the economy becomes correlated through the core banks’ solvency. Core banks serve as a buffer against contagion when solvent and an amplifier of contagion when insolvent. As such, bailouts create welfare volatility and increase systemic risk via network hazard. It is shown that network hazard is a novel force distinct from moral hazard. Results are historically relevant to the pyramiding of reserves and the establishment of the Federal Reserve.
GSIELM (Graduate Students International Economics and Labor Market) Lunch Seminar
Du 11/03/2019 de 13:00 à 14:00
KOENIG Pamina (PSE)
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Régulation et Environnement
Du 11/03/2019 de 12:00 à 13:00
salle R1-13, campus Jourdan - 75014 Paris
VONA Francesco (University of Milan)
The Impact of Energy Prices on Employment and Environmental
This paper evaluates the influence of energy prices on employment and environmental performance of French manufacturing establishments over the period of 1997-2015. To identify price effects, we construct a shift-share instrument that captures only the exogenous variation in establishment-specifi c energy prices. Our results highlight a trade-off between environmental and economic goals: an increase in energy prices brings about not only substantial reductions in energy consumption and CO2 emissions, but also modestly negative impacts on employment and productivity. This trade-off will be ampli fied by a carbon tax, especially in trade-intensive and energy-intensive sectors. Finally, employment effects are not biased against unskilled workers and are mitigated by labor reallocation across establishments within the same company.