Calendrier du 12 novembre 2018
Roy Seminar (ADRES)
Du 12/11/2018 de 17:00 à 18:30
Salle R1-09, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
BOUTON Laurent (Georgetown University)
Electoral Systems and Inequalities in Government Interventions
This paper studies the political determinants of inequality in government interventions under the majoritarian and proportional representation systems. Using a model of electoral competition with targetable government intervention and heterogeneous localities, we uncover a novel relative electoral sensitivity effect in majoritarian systems. This effect, which depends on the geographic distribution of voters, can incentivize parties to allocate resources more equally under majoritarian systems than proportional representation systems. This contrasts with the conventional wisdom that government interventions are more unequal in majoritarian systems.
Texte intégral
Régulation et Environnement
Du 12/11/2018 de 12:00 à 13:00
salle R1-13, campus Jourdan - 75014 Paris
VANDENBUSSCHE Hylke (KU Leuven)
Input reallocation in Multi-product Firms
écrit avec C. Viegelahn
This paper documents the within firm reallocation of inputs and outputs as a result of a trade policy shock on the input side. A unique firm-input level dataset for India with information on different raw material inputs used in production, enables us to identify firms with imported inputs subject to trade policy. To guide the empirics, we first develop a back-bone model of heterogeneous firms that source inputs from abroad. We find that affected firms engage in input reallocation and lower their use of protected inputs by 25-40%, relative to other inputs.
Especially large firms and multi-output firms skew their input use towards unprotected inputs. To identify the output reallocation ensuing trade protection on inputs, we develop a firm level input-output correspondence. Firms reduce their sales of outputs made of protected inputs, resulting in an annual aggregate manufacturing output growth loss for India of around 10%. We find a firm level decrease in markups, suggesting that the cost of imported inputs is only partially passed through to output prices. Thus, this paper documents a new channel through which trade protection negatively impacts input-using firms.