References of "Picard, Pierre M. 50002853"
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See detailThe Zoom City: Working From Home, Urban Productivity and Land Use
Picard, Pierre M UL; Efthymia, Kyriakopoulouy

E-print/Working paper (2022)

Who will benefit and who will lose from a permanent increase in working from home (WFH)? This paper investigates the impact of WFH on cities of different sizes, highlights the dangers of too much WFH, and ... [more ▼]

Who will benefit and who will lose from a permanent increase in working from home (WFH)? This paper investigates the impact of WFH on cities of different sizes, highlights the dangers of too much WFH, and discusses aspects of the disagreement between workers and firms. Our results suggest that WFH raises urban productivity and average wages only in large cities. We also study the optimal fraction of WFH and show that workers-residents have incentives to adopt an inefficiently high WFH scheme. The implementation of remote work in the short run---at fixed rents and wages---implies higher benefits for long-distance commuters and lower benefits or even losses for short-distance ones. It also implies benefits for some firms and losses for others, which potentially explains the low prevalence of WFH before the pandemic. Finally, we show that advances in digital technology, which increase the productivity of remote workers, lead to increased welfare benefits. A calibration exercise for the average and the largest European capital cities sheds more light on the impact of WFH on cities of different sizes. [less ▲]

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See detailIncome Inequality, Productivity, and International Trade
Picard, Pierre M UL

in Economic Theory (2022)

This paper studies the effect of income inequality on selection and aggregate productivity in a general equilibrium model with non-homothetic preferences and product quality. The model matches the ... [more ▼]

This paper studies the effect of income inequality on selection and aggregate productivity in a general equilibrium model with non-homothetic preferences and product quality. The model matches the empirical fact that an increase in income shifts one’s consumption towards goods that have higher quality both at the intensive and extensive margins. It also implies a negative relationship between the number and quantity of goods consumed by an income group and the earnings of other income groups. The central result is that a mean-preserving spread of the income distribution negatively affects aggregate productivity through the softening of firms’ selection. In the presence of international trade, this effect is amplified with lower trade barriers or a larger number of trade partners. Furthermore, the model implies that the domestic expenditure shares and welfare gains from trade are constant across income groups. A simple quantitative exercise suggests that an income redistribution like the one induced by the US Federal taxes and transfers raises average productivity by about 3%. [less ▲]

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See detailCOVID-19 Crisis Management in Luxembourg: Insights from an Epidemionomic Approach
Burzynski; Machado, Joel; Aalto, Atte UL et al

in Economics and Human Biology (2021), 43

We develop an epidemionomic model that jointly analyzes the health and economic responses to the COVID-19 crisis and to the related containment and public health policy measures implemented in Luxembourg ... [more ▼]

We develop an epidemionomic model that jointly analyzes the health and economic responses to the COVID-19 crisis and to the related containment and public health policy measures implemented in Luxembourg. The model has been used to produce nowcasts and forecasts at various stages of the crisis. We focus here on two key moments in time, namely the deconfinement period following the first lockdown, and the onset of the second wave. In May 2020, we predicted a high risk of a second wave that was mainly explained by the resumption of social life, low participation in large-scale testing, and reduction in teleworking practices. Simulations conducted 5 months later reveal that managing the second wave with moderately coercive measures has been epidemiologically and economically effective. Assuming a massive third (or fourth) wave will not materialize in 2021, the real GDP loss due to the second wave will be smaller than 0.4 percentage points in 2020 and 2021. [less ▲]

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See detailThe Zoom City: Working From Home and Urban Land Structure
Picard, Pierre M UL; Kyirakopoulou, Efthymia

Scientific Conference (2021, November)

How would cities change if working from home (WFH) persisted in the post-pandemic era? This paper investigates the impact of WFH in the internal structure of monocentric cities, where production is ... [more ▼]

How would cities change if working from home (WFH) persisted in the post-pandemic era? This paper investigates the impact of WFH in the internal structure of monocentric cities, where production is characterized by management and employee spillovers. We find that business land rents decrease, while residential land rents fall close to the business center and increase in the suburbs. WFH raises urban productivity and average wages only in large cities. The paper also studies the optimal fraction of WFH from a residents and welfare point of view. Our results suggest that workers-residents have incentives to adopt an inefficiently high WFH scheme. We finally discuss the implementation of remote work in the short run. We show that WFH implies higher benefits for long distance commuters and lower benefits or even losses for firms and short distance commuters. [less ▲]

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See detailQuality and Trade with Many Countries and Industries
Picard, Pierre M UL; Tampieri, Alessandro

Scientific Conference (2021, October)

This paper investigates a trade model with many countries, many goods produced in multiple quality versions and non-homothetic preferences. It studies the impact of productivity, population changes and ... [more ▼]

This paper investigates a trade model with many countries, many goods produced in multiple quality versions and non-homothetic preferences. It studies the impact of productivity, population changes and trade costs on the quality composition of exports. The analysis embeds within the same model a series of empirical results about high-income countries specialization and trade in higher quality goods. Product di¤erentiation matters at explaining the volumes of trade quality. High-quality goods exhibiting a high degree of di¤erentiation are traded only by high-income countries. [less ▲]

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See detailOn the effects of income heterogeneity in monopolistically competitive markets”
Picard, Pierre M UL; Kichko, Sergey

Scientific Conference (2021, August)

This paper studies the e¤ects of income heterogeneity on monopolistically competitive product markets and welfare in the context of non-homothetic preferences. When richer individuals expenditures are ... [more ▼]

This paper studies the e¤ects of income heterogeneity on monopolistically competitive product markets and welfare in the context of non-homothetic preferences. When richer individuals expenditures are less sensitive to price change compared to poorer ones , a mean-preserving contraction of income distribution entices rms to charge higher prices, new rms enter and broaden product diversity. General equilibrium e¤ects have a negative impact on poorer individuals and, in speci c circumstances, on whole population. In open economies, lower income inequality in a country creates a price divergence between countries and decreases trade volumes and values. Those general equilibrium e¤ects are quantitatively non negligible. [less ▲]

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See detailGeographical Stratification of Green Urban Areas
Picard, Pierre M UL; Tran, Thi Thu Huyen UL

in Journal of Economic Geography (2021)

This article studies the provision of urban green areas in cities where residents have preferences for the size of and access to those areas. At the optimum, the number of urban green spaces is a ... [more ▼]

This article studies the provision of urban green areas in cities where residents have preferences for the size of and access to those areas. At the optimum, the number of urban green spaces is a nonmonotone function of distance to the city center, while the sizes and distances to other urban green areas increase as one moves to the urban fringe. This article empirically investigates those properties for the 300 largest European cities by using the Global Monitoring Environment Services Urban Atlas database (European Environmental Agency). The empirical analysis confirms the nonmonotone relationship between the number of urban green spaces and the distance to the city center. The distance between two parks also increases as one moves toward the urban fringe. [less ▲]

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See detailSmall urban green areas
Picard, Pierre M UL; Tran, Thi Thu Huyen UL

in Journal of Environmental Economics and Management (2021), 106

This paper studies the size and location of small urban green areas across city spaces. Small urban green areas offer amenities that affect residential choices, land consumption and land rent. This paper ... [more ▼]

This paper studies the size and location of small urban green areas across city spaces. Small urban green areas offer amenities that affect residential choices, land consumption and land rent. This paper discusses the land use and locations of those areas and the resulting residential space allocation. It is shown that the land share dedicated to small urban green areas results from the trade-off between land value and population density and is a single peaked function of the distance to the city center. This result is confirmed by the empirical study of urban structures in the 305 largest EU cities using GIS data. This spatial pattern is shown to be robust to many measures of urban land uses. [less ▲]

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See detailEffect of conformism on firm selection, product quality and home bias
Picard, Pierre M UL; Kichko, Sergey

in Journal of Economic Behavior and Organization (2021), 185

This paper investigates the impact of local traffic pollution on the formation of residential and business districts. While firms benefit from local production externalities, households commute to their ... [more ▼]

This paper investigates the impact of local traffic pollution on the formation of residential and business districts. While firms benefit from local production externalities, households commute to their workplaces with private vehicles and exert a local pollution externality on the residents living along the urban transport networks. The spatial location of firms and residents endogenously results from the trade-off between the production and pollution externalities and the commuting costs. The analysis shows that in monocentric cities the benefits associated with a fall in per-vehicle pollution are absorbed by rents paid to absentee landlords. When a city includes business and residential districts as well as a district mixing both agents, a lower per-vehicle pollution enlarges the residential districts and shifts the business districts closer to the geographical center of the city. The paper finally studies the optimal city structure. The first-best policies that fully internalize the externalities still foster business agglomeration. [less ▲]

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See detailOn the Design of Sustainable Cities: Local Traffic Pollution and Urban Structure
Picard, Pierre M UL; Kyriakopoulou, Efthymia

in Journal of Environmental Economics and Management (2021), 107

This paper investigates the impact of local traffic pollution on the formation of residential and business districts. While firms benefit from local production externalities, households commute to their ... [more ▼]

This paper investigates the impact of local traffic pollution on the formation of residential and business districts. While firms benefit from local production externalities, households commute to their workplaces with private vehicles and exert a local pollution externality on the residents living along the urban transport networks. The spatial location of firms and residents endogenously results from the trade-off between the production and pollution externalities and the commuting costs. The analysis shows that in monocentric cities the benefits associated with a fall in per-vehicle pollution are absorbed by rents paid to absentee landlords. When a city includes business and residential districts as well as a district mixing both agents, a lower per-vehicle pollution enlarges the residential districts and shifts the business districts closer to the geographical center of the city. The paper finally studies the optimal city structure. The first-best policies that fully internalize the externalities still foster business agglomeration. [less ▲]

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See detailLocal Social Interaction and Urban Equilibria
Picard, Pierre M UL; Augeraud-Veron, Emmanuelle; Maruhenda, Fransico

in Mathematical Social Sciences (2021), 112

In this paper we investigate the effect of local interaction in a simple urban economics model. Agents interact with others if and only if their interaction benefit outweighs their travel cost and ... [more ▼]

In this paper we investigate the effect of local interaction in a simple urban economics model. Agents interact with others if and only if their interaction benefit outweighs their travel cost and therefore meet others only within finite geographic windows. We show that two or more cites may co-exist at the equilibrium provided that they are sufficiently distant. For any interaction surplus function, there exists a unique spatial equilibrium on not too large city supports. The population density within a city is determined by a second order advance-delay differential equation, whose solutions are fully characterized for linear interaction surplus functions. Numerical analyses show that more localized interactions yield flatter population density and land rents over larger extents of the city support. They do not give support to the idea that multiple subcenters can be caused by small and finite geographic windows of interaction. [less ▲]

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See detailVertical differentiation and trade among symmetric countries.
Picard, Pierre M UL; Tampieri, Alessandro

in Econometric Theory (2020)

We study a trade model with vertical product differentiation with many goods that are heterogeneous in cost and quality and produced in two quality versions. We discuss the composition of high- and low ... [more ▼]

We study a trade model with vertical product differentiation with many goods that are heterogeneous in cost and quality and produced in two quality versions. We discuss the composition of high- and low-quality goods in the workers’ consumption baskets in countries between comparable countries. We show that a larger country population fosters its specialization in high-quality production while a higher country productivity leads to specialization in high quality production for all countries. Smaller trade costs foster specialization in high quality exports. We then discuss the effect of population heterogeneity on the consumption baskets and country specialization. Most of those results agree with existing empirical findings. [less ▲]

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See detailThe Contribution of New Economic Geography.
Mossay, Pascal; Picard, Pierre M UL

in Oxford Research Encyclopedia of Economics and Finance (2020)

New Economic Geography (NEG) provides micro-economic foundations for explaining the spatial concentration of economic activities across regions, cities, and urban areas. The origins of the NEG literature ... [more ▼]

New Economic Geography (NEG) provides micro-economic foundations for explaining the spatial concentration of economic activities across regions, cities, and urban areas. The origins of the NEG literature trace back to trade, location, and urban economics theories. In NEG, agglomeration and dispersion forces explain the existence of spatial agglomerations. A NEG model usually incorporates a combination of such forces. In particular, firm proximity to large markets and the importance of linkages along a supply chain are typical agglomeration forces. Equilibria properties derived from NEG models are very specific to NEG as they involve multiple equilibria and have a very high dependence on changes in parameters. This phenomenon has important implications for the emergence of nations, regions and cities. In particular, high transport costs imply the dispersion of economic activities, while low transport costs lead to their spatial concentration. The same forces that shape inequalities and disparities between regions also shape the internal structure of cities. Firms concentrate in urban centres to gain greater access to larger demand. The empirical literature has developed several approaches that shed light on spatial agglomeration and estimate the role and impact of transport costs on market access. A key empirical research question is whether observed patterns could be explained by location amenities or agglomeration forces as put forward by NEG. Quasi-experimental methodology is frequently used for such a purpose. NEG theory is supported by empirical evidence, demonstrating the role of market access. [less ▲]

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See detailCustomary Land Conversion and the Formation of the African City
Picard, Pierre M UL; Selod, Harris

E-print/Working paper (2020)

As cities grow and spatially expand, agricultural land is converted into residential land. In many developing countries, especially in Sub-Saharan Africa, this process is accompanied by a change in land ... [more ▼]

As cities grow and spatially expand, agricultural land is converted into residential land. In many developing countries, especially in Sub-Saharan Africa, this process is accompanied by a change in land tenure, whereby plots held under traditional customary arrangements are sold to new urban residents, possibly with formal property rights. This paper studies joint land-use and land-tenure conversion in an urban economics model in which intermediaries purchase agricultural land from customary owners and attempt to transform it into residential plots with statutory property rights. The spatial equilibrium includes a mix of land uses and rights where statutory and non-statutory residential plots coexist with customary land that is mainly used for agriculture. Because customary ownership is subject to uncertainty (because of tenure insecurity), the conversion process includes a potential information asymmetry between customary owners and intermediaries. The analysis shows that a market failure may emerge whereby some customary owners prefer to continue farming their land rather than participate in the urban residential land market, which results in a city that is too small. Empirical analysis using Malian data validates the key features of the model captured by land price gradients, as well as the ranking and the variance of land prices, and is suggestive of the presence of information asymmetry. [less ▲]

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See detailUrban Structures with Forward and Backward Linkages
Picard, Pierre M UL

in Regional Science and Urban Economics (2020), 59(3), 480-507

We study urban structures driven by demand and vertical linkages in the presence of increasing returns to scale. Individuals consume urban varieties and firms use these varieties to produce a national ... [more ▼]

We study urban structures driven by demand and vertical linkages in the presence of increasing returns to scale. Individuals consume urban varieties and firms use these varieties to produce a national good. We prove the existence of a spatial equilibrium and obtain an invariance result according to which more intense demand or vertical linkages have the same effect on the urban structure as lower commuting costs. Various urban configurations can emerge exhibiting a monocentric, an integrated, a duocentric, or a partially integrated city structure. We discuss the role of commuting and transport costs, demand and vertical linkages, and urbanization in shaping these patterns. We show that multiple equilibria may arise involving the monocentric city and up to a couple of duocentric and partially integrated structures. [less ▲]

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See detailA Welfare Evaluation of Green Urban Areas
Picard, Pierre M UL; Tran, Huyen

E-print/Working paper (2020)

Urban green areas cover more than 6% of urban land in Europe. This paper quan-tifies the impact of urban green areas on city structures for more than 300 Europeancities. It discusses the economic effects ... [more ▼]

Urban green areas cover more than 6% of urban land in Europe. This paper quan-tifies the impact of urban green areas on city structures for more than 300 Europeancities. It discusses the economic effects of the local amenity produced by green urbanareas using an urban economics model with various set of preferences. It estimatesthose models using data on detailed residential land uses, green urban areas and popu-lation density. It finally assesses the economic effects of reducing urban green areas incounterfactual exercises where cities are closed and open to migration and green urbanland is converted to residential plots or not. By this strategy, the economic assess-ment accounts for the general equilibrium effects through endogenous land prices andresidential space and location choices. It shows that the gross benefits of urban greenareas are substantial. A uniform removal of half of the urban green areas is equivalentto 6-9% reduction of household annual income. However, the conversion of those areasto residential plots brings a net gain of approximately 4% [less ▲]

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See detailCurrency areas and voluntary transfers
Picard, Pierre M UL

in Journal of International Economics (2020), 127(C),

Fiscal integration is recognized as an important issue in determining whether countries establish a common currency area. Fiscal integration between sovereign states is, however, limited by the ability of ... [more ▼]

Fiscal integration is recognized as an important issue in determining whether countries establish a common currency area. Fiscal integration between sovereign states is, however, limited by the ability of countries to commit to fiscal transfers. This paper supposes that fiscal transfers between countries must be voluntary and asks how this influences the choice between a currency area and a flexible exchange rate regime. It presents a model with wage rigidity in which, absent transfers, the flexible exchange rate regime is preferred. If there are transfers that equalize consumption, then the choice of exchange rate regime is irrelevant. Nevertheless, the currency area may be preferable if transfers are made voluntarily, because the currency area can sustain greater risk sharing. It is shown that the currency area can be optimal for a plausible set of parameter values. We consider the robustness of the conclusions to some modifications of the model. [less ▲]

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See detailGeographical Stratification of Green Urban Areas
Picard, Pierre M UL; Tran, Thi Thu Huyen UL

E-print/Working paper (2020)

This paper studies the provision of urban green areas in cities when residents havepreferences for the size of and access to those areas. At the optimum, the number ofurban green spaces is a non-monotone ... [more ▼]

This paper studies the provision of urban green areas in cities when residents havepreferences for the size of and access to those areas. At the optimum, the number ofurban green spaces is a non-monotone function of distance to the city centre, whilethe sizes and distances to other urban green areas increase as one moves to the urbanfringe. This paper empirically investigates those properties for the 300 largest Europeancities by using the GMES Urban Atlas database (European Environmental Agency).The empirical analysis confirms the non-monotone relationship between the numberof urban green spaces and the distance to the city centre. The distance between twoparks also increases as one moves toward the urban fringe. Finally, richer cities areassociated with a denser network of urban green areas. [less ▲]

Detailed reference viewed: 93 (4 UL)
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See detailLocal Social Interaction and Urban Equilibria
Picard, Pierre M UL; Augeraud-Veron, Emmanuelle; Maruhenda, Francisco

E-print/Working paper (2019)

In this paper we investigate the effect of local interaction in a simple urban economics model. Agents interact with others if and only if their interaction benefit outweights their travel cost and ... [more ▼]

In this paper we investigate the effect of local interaction in a simple urban economics model. Agents interact with others if and only if their interaction benefit outweights their travel cost and therefore meet others only within finite geographic windows. We show that two or more cites may co-exist at the equilibrium provided that they are sufficiently distant. For any interaction surplus function, there exists a unique spatial equilibrium on not too large city supports. The population density within a city is determined by a second order advance-delay differential equation, whose solutions are fully characterized for linear interaction surplus functions. Numerical analyses show that more localized interactions yield flatter population density and land rents over larger extents of the city support. They do not give support to the idea that multiple subcenters can be caused by small and finite geographic windows of interaction. [less ▲]

Detailed reference viewed: 54 (2 UL)
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See detailCommodity taxation and regulatory competition
Zanaj, Skerdilajda UL; Picard, Pierre M UL; Moriconi, Simone

in International Tax and Public Finance (2019), 26(4),

The purpose of this paper is twofold. We first investigate whether product market regulations affect commodity taxation in open-to-trade economies, and second, we study the strategic interaction in ... [more ▼]

The purpose of this paper is twofold. We first investigate whether product market regulations affect commodity taxation in open-to-trade economies, and second, we study the strategic interaction in regulatory measures between trading partner countries. We present a two-country general equilibrium model in which destination-based commodity taxes finance public goods, and product market regulation affects both the number of firms in the market and product diversity. Based on data for 21 OECD countries over the 1990–2008 period, we provide empirical evidence suggesting that product market regulations are strategic complement policies and that domestic regulations have a negative impact on domestic commodity taxation. [less ▲]

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