Calendrier du 11 mai 2023
Macroeconomics Seminar
Du 11/05/2023 de 16:00 à 17:15
PSE- 48 boulevard Jourdan, 75014 Paris, salle R2-21
ANNICCHIARICO Barbara (University of Rome Tor Vergata)
Climate Policies, Macroprudential Regulation, and the Welfare Cost of Business Cycles
We compare the performance of a carbon tax and a cap-and-trade scheme in a dynamic stochastic general equilibrium model that includes an environmental externality and agency problems associated with financial intermediation. Heterogeneous polluting firms purchase capital by combining their resources with loans from banks and are hit by idiosyncratic shocks that can lead them to default. We find that financial market distortions strongly affect the performance of climate policy throughout the business cycle. Welfare cost of business cycles are substantially lower under a cap-and-trade system than under a carbon tax if financial frictions are stringent, firm leverage is high, and agents are sufficiently risk-averse.
The difference in welfare costs shrinks significantly in the presence of simple macroprudential policy rules, which reduce financial market distortions. These policies can go a long way in smoothing business cycle fluctuations and aligning the performance of price and quantity pollution policies, reducing the uncertainty inherent to the government's chosen climate policy tool.
Travail et économie publique externe
Du 11/05/2023 de 12:30 à 13:30
PSE- 48 boulevard Jourdan, 74014 Paris, salle R1-09
BüTIKOFER Aline (NHH)
Collective Climate Action: Air Pollution and Child Outcomes
This paper examines the long-term impacts of early childhood pollution exposure by exploiting the Air Convention (Convention on Long-Range Transboundary Air Pollution) as a natural experiment using Norwegian administrative data. We use a difference-in-differences design to analyze the outcomes between cohorts born in municipalities before and after significant improvements in acid exposure relative to those same cohorts born in municipalities with no improvements. We find that a higher pollution level is associated with lower academic performance and earnings at age 30. The effects are mainly driven by individuals from municipalities with initial exposure above certain thresholds. The novel Difference-in-Differences movers’ design provides new evidence on age-specific estimates of the pollution-human capital relationship.
TOM (Théorie, Organisation et Marchés) Lunch Seminar
Du 11/05/2023 de 12:30 à 13:30
Salle R1-14, Campus Jourdan, 75014 Paris
COUTINHO Rafaël (Universidade Federal de Pernambuco)
*Infinitely repeated cheap-talk: From information to influence
écrit avec Paulo Melo-Filho
We solve an infinitely repeated version of Crawford and Sobel (1982) Strategic information transmission model. We find that repeated interaction allows for perfect information transmission for patient players, in the spirit of folk theorems. For impatient players, however, we also find repeated partition equilibria that are more informative than in the static game. Additionally, if the decision maker offers a biased policy, the partition equilibrium becomes even more informative. For small policy bias, more information is Pareto improving, whereas for large bias only the sender benefits. This suggests that, through repeated interaction, the sender can use his superior information to obtain a favorable policy. Applying this model to lobbying shows that interest groups can influence policy makers without monetary contributions. Plus, the influence can have positive or negative welfare impacts, depending on the level of capture.