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This article considers optimization problems under two Rawls criteria. The first one is the classical Rawls criterion in literature and the second one as a result of the maximin criteria with multiple discount factors presented in Chambers and Echenique [8]. Though these criteria are different, they have the same optimal value and solution.

In this work we introduce a general equilibrium model with landlords, indebted owner-occupiers and renters to study housing markets' dynamics. We estimate it by using standard Bayesian methods and match the US data of the last decades. This framework is particularly suited to explain current trends on housing markets. We highlight the crucial relationship between interest rates, house prices and rents, and argue that it helps understanding the main driving forces. Our analysis suggests that current developments on housing markets can play a role for a recovery from the Covid pandemic as they have an expansionary effect on aggregate output. Moreover, we account for the heterogeneous impact of crisis-induced policies depending on agents' status on the housing market. We show how, despite an increase in housing prices, the welfare of landlords has been negatively hit. This is associated to the joint decrease in returns on housing and financial assets that reduces their financial incomes.

International audience; The green bond market has dramatically expanded especially in Europe but severe liquidity issues may undermine its rapid development. If few studies have assessed the implied liquidity risks for investors in terms of liquidity premium, none of them have specifically analysed its behavior across bond maturities. To fill this gap, this paper studies the term structure of the liquidity premium of the green bond market. We find that the sizes of short-term and long-term premia are close to those estimated on the German government bond market. We show that those premia are affected by economic factors and by spillover effects between them, which contribute to the U-Shape of the liquidity premium. Finally, we detect a liquidity clientele effect on the ask side impacting the liquidity premium, which implies a maturity segmentation i.e., high-risk (resp. low-risk) investors buy short-term (resp. long-term) green bonds and hold them until maturity. Taken together, our results deliver valuable insights on investors' strategies in the green bond market. Quite importantly, green bond investors prefer to opt for buy and hold strategies because they are compensated for higher liquidity risks along the entire maturity spectrum.

International audience; In October 2015 the European Parliament has established a Market Stability Reserve (MSR) in the Phase 4 of the EU-ETS, as part of the 2030 framework for climate policies. In this paper we model the EU-ETS in presence of the Market Stability Reserve (MSR) as it is defined by that decision and investigate the impact that such a measure has in terms of permits price, output production and banking strategies. To do so we build an inter-temporal model in which polluting firms competing in an homogeneous good market are price takers in a permits market and face an uncertain demand. Our main finding is that the MSR succeeds in increasing the permits' price correcting an excess supply (and conversely decreasing it in case of excess demand). However, when the output demand is stochastic, the MSR may alter the arbitrage conditions that determine permits' prices. In some cases which depend on the extend of the demand variation, unintended effects on the price pattern appear. This in turns may adversely affect welfare.

International audience; We consider a model with a finite number of states of nature where short sells are allowed. We present a notion of no-arbitrage price weaker than the one of Werner (1987) that we call weak no-arbitrage price. We prove that in the case of maximin expected utility functions, the existence of one common weak no-arbitrage price is equivalent to the existence of an equilibrium. © 2018 Elsevier B.V.

International audience; This paper analyzes the business cycle behavior of the corporate debt structure and its interaction with economic recovery. The debt structure is measured as the share of bonds in the total credit to non-financial corporations for a quarterly panel of countries over the period 1989–2013. We first show that the substitution of loans for bonds in recoveries is a regular property of business cycles. Secondly, we provide evidence that economies with high bond share and important bond-loan substitution recover from the recessions faster. This identified link between corporate debt structure and business cycles is robust to the inclusion of traditional factors which shape recessions and recovery such as the size and the quality of financial markets, the occurrence of bank crisis, the dynamics of credit, and the distribution of firm size. © 2017 Elsevier B.V.

International audience; Countries are implementing policies to develop greener energy markets worldwide. In Europe, the “2030 Energy and Climate Package” asks for further reductions of green house gases, renewable sources integration, and energy efficiency targets. But the polluting intensity of electricity may be different in average than when considering market inefficiencies, in particular losses, and therefore the implemented policy must take those differences into account. Precisely, herein we study the importance in terms of CO2 emissions the extra amount of energy necessary to cover losses. With this purpose we use Spanish market and system data with hourly frequency from 2011 to 2013. Our results show that indeed electricity losses significantly explain CO2 emissions, with a higher CO2 emissions rate when covering losses than the average rate of the system. Additionally, we find that the market closing technologies used to cover losses have a positive and significant impact on CO2 emissions: when polluting technologies (coal or combined cycle) close the market, the impact of losses on CO2 emissions is high compared to the rest of technologies (combined heat and power, renewables or hydropower). To the light of these results we make some policy recommendations to reduce the impact of losses on CO2 emissions.

International audience; We study the short-term price behavior of Phase 2 EU emission allowances. We model returns and volatility dynamics, and we demonstrate that a standard ARMAX-GARCH framework is inadequate for this modeling and that the gaussianity assumption is rejected due to a number of outliers. To improve the fitness of the model, we combine the underlying price process with an additive stochastic jump process. We improve the model's performance by introducing a time-varying jump probability that is explained by two variables: the daily relative change in the volume of transactions and the European Commission's announcements regarding the supply of permits. We show that (i) sharp increases in volume have led to increased volatility during the April 2005-December 2007 period but not for the period beginning in January 2008, and (ii) announcements induce jumps in the process that tend to increase volatility across both periods. Thus, authorities face a trade off between disseminating information effectively and promoting market stability. (c) 2015 Elsevier Ltd. All rights reserved.

We study the optimal dynamics of an AK economy where population is uniformly distributed along the unit circle. Locations only differ in initial capital endowments. Spatio-temporal capital dynamics are described by a parabolic partial differential equation. The application of the maximum principle leads to necessary but non-sufficient first-order conditions. Thanks to the linearity of the production technology and the special spatial setting considered, the value-fonction of the problem is found explicitly, and the (unique) optimal control is identified in feedback form. Despite constant returns to capital, we prove that the spatio-temporal dynamics, induced by the willingness of the planner to give the same (detrended) consumption over space and time, lead to convergence in the level of capital across locations in the long-run., Nous étudions la dynamique optimale d'une économie Ak dans laquelle la population est distribuée uniformément le long du cercle unité. Les lieux ne diffèrent que par leur dotation initiale de capital. La dynamique du capital est décrite par une équation aux dérivées partielles dans l'espace et le temps. Grâce à la linéarité de la technologie de production et le cadre spatial, nous trouvons la fonction de valeur d'une façon explicite et identifions le contrôle optimal qui est par ailleurs unique. Malgré les rendements d'échelle constants, nous démontrons que la dynamique dans le temps et l'espace, induite par la volonté du décideur de donner le même niveau de consommation à travers le temps et l'espace, mène à la convergence spatiale du capital à long terme.

International audience; We transpose the Generalized Impulse-Response Function (GIRF) developed by. Koop etal. (1996) to Markov-Switching structural VARs. As the algorithm displays an exponentially increasing complexity as regards the prediction horizon, we use the collapsing technique to easily obtain simulated trajectories (shocked or not), even for the most general representations. Our approach encompasses the existing IRFs proposed in the literature and is illustrated with an applied example on gross job flows. © 2012 Elsevier B.V.

International audience; With a strong global demand for some 30 years, natural gas is a particular challenge for countries of South and Central America since each cubic meter of natural gas that is consumed is produced in this continent. It therefore seems appropriate to consider the risk of a collision gas and its effects on the countries most dependent on gas (either as producers or as consumers). Thus, in this paper, we study the vulnerability of gas in several countries on four ratios developed by Cabalu (2010). Once calculated from empirical data, these ratios helped to determine indicators and to classify countries according to their vulnerability in the event of a gas shock (sudden rise in prices). A picture emerges which represents an indicative classification of the countries. (C) 2012 Elsevier Ltd. All rights reserved.

International audience; The paper examines the question of the redistribution of toll revenue as seen in a bottleneck congestion model. Our objective is to analyse the impact of this redistribution on total cost and on modal split between railroad and road. Following Tabuchi's two-mode model (Tabuchi, T., 1993. Bottleneck congestion and modal split. Journal of Urban Economics 34, 414-431.), we integrate a redistribution of toll revenue towards public transport into our study. In this context, we investigate two kinds of road toll regimes: a fine toll and a uniform toll. We will consider two types of railroad fare: when it is set equal to the marginal cost and when it is set equal to average cost. These models allow us to show that toll policy to be more efficient as long as toll revenue is directed towards public transport when the railroad fare is equal to average cost. © 2010 Elsevier Ltd.

International audience; Ehrmann et al. (2003) proposed an IRF in the frame of Markov-switching structural VARs. Their IRF provides insights on the dynamics within the regime in which the shock occurs. We propose an IRF that captures the global response of the system and illustrate its use with examples.

Transition to floating exchange rate regimes has led to sharp increases in nominal and real exchange rate volatilities with no corresponding changes in the distribution of fundamental macroeconomic variables. In the spirit of Dornbusch [1976], we assess whether nominal exchange rate overshooting is responsible for this phenomenon. As long as uncovered interest rate parity holds, nominal exchange rate overshooting is linked to a persistent fall in the spread between domestic and foreign nominal interest rates. We thus develop a limited participation model in an international setting. Introducting adjustment costs on money holdings in the limited participation framework substantially raises the magnitude of the overshooting dynamics. Overshooting indeed plays a key role in understanding the extreme nominal exchange rate volatility.

International audience; We study the effectiveness of public investment in stimulating an economy stuck in a liquidity trap. We do so in the context of a tractable new-Keynesian economy in which a fraction of government spending increases the stock of public capital subject to a time-to-build constraint. Public investment projects typically entail significant time-to-build delays, which often span several years from approval to completion. We show that this feature implies that the spending multiplier associated with public investment can be substantially large — nearly twice as large as the multiplier associated with public consumption — in a liquidity trap. Intuitively, when the time to build is sufficiently long, and to the extent that public capital raises the marginal productivity of private inputs, the resulting disinflationary effect will occur after the economy has escaped from the liquidity trap. At the same time, the increase in households' expected wealth amplifies aggregate demand while the economy is still in the liquidity trap. Using a medium-scale model extended to allow for the accumulation of public capital, we quantify the multiplier associated with the spending component of the 2009's ARRA, which allocated roughly 40% of the authorized funds to public investment. We find a peak multiplier of 2.31. Our results also indicate that failing to account for the composition of the stimulus by overlooking its investment component would lead one to underestimate the spending multiplier by about 50%. © 2016 Elsevier Inc.

This study uses the findings of a correspondence testing in order to assess the potential discrimination at job access level against young people of ethnic origin from the underprivileged suburbs of the Paris area (Ile-de-France). We measure simultaneously the effects of place of residence (privileged or underprivileged city), of nationality (French or Moroccan), and of sound of surname and of forename on the chances of obtaining a job interview when answering a job ad. We base our assessment on a controlled experiment conducted on the profession of accountant. We constructed 16 jobseeker profiles and sent 1097 resumes in reply to 140 job vacancies advertised at the end of 2006. We find evidence of a significant discrimination against the candidates with a foreign origin., Cette étude utilise les résultats d'un test de correspondance afin d'évaluer la discrimination potentielle lors de l'accès aux entretiens d'embauche, pour les jeunes d'origine étrangère résidant dans des communes défavorisées d'Île de France. Nous mesurons simultanément les effets de la commune de résidence (ville favorisée ou défavorisée), de la nationalité (française ou marocaine) et de la consonance du nom et du prénom, sur les chances d'obtenir un entretien d'embauche en réponse à une offre d'emploi. Notre évaluation repose sur une expérience contrôlée réalisée sur la profession de comptable. Nous avons construit 16 profils de candidature et avons envoyé 1097 CV en réponse à 140 offres d'emploi postées à la fin de l'année 2006. Nous trouvons qu'il existe une discrimination significative à l'encontre des candidats d'origine étrangère.