References of "Picard, Pierre M 50002853"
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See detailIncome Effects and Vertical Differentiation in International Trade
Picard, Pierre M UL; Tampieri, Alessandro

E-print/Working paper (2016)

We analyse a trade model with non-homothetic preferences and different quality ver- sions of each product. Income effects drive the quality composition of consumption, pro- duction and trade flows. We ... [more ▼]

We analyse a trade model with non-homothetic preferences and different quality ver- sions of each product. Income effects drive the quality composition of consumption, pro- duction and trade flows. We show that a rise in local population fosters local asymmetric specialization in high-quality production and exports while it harms low income groups. By contrast, an increase in local productivity may generate specialization in high quality production, which in turn may trigger an immiserizing growth process. Weaker compa- rative advantages induce firm to move and make a local productivity improvement more likely to increase production of higher quality goods everywhere. [less ▲]

Detailed reference viewed: 124 (12 UL)
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See detailThe Clean Development Mechanism in a world carbon market
Picard, Pierre M UL; Brèchet, Thierry; Ménière, Yann

in Canadian Journal of Economics (2016), 49(4), 1569-1598

This paper discusses the role of the Clean Development Mechanism (CDM) in the market for carbon quotas and countries' commitments to reduce their carbon emission levels. We show that the CDM contributes ... [more ▼]

This paper discusses the role of the Clean Development Mechanism (CDM) in the market for carbon quotas and countries' commitments to reduce their carbon emission levels. We show that the CDM contributes to an efficient funding of clean technology investments in least developed countries. However, the CDM is not neutral on the global level of carbon emissions as it entices countries to raise their emission caps. The CDM may also make inappropriate the inclusion of any country that takes no emission abatement commitment. It can even make inefficient a country's decision to commit to an emission target. The implications of the presence of non-additional projects are also analyzed. [less ▲]

Detailed reference viewed: 91 (3 UL)
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See detailAirport Congestion and Inefficiency in Slot Allocation
Picard, Pierre M UL; Tampieri, Alessandro UL; Wan, Xi

E-print/Working paper (2015)

This paper analyzes optimal slot allocation in the presence of airport congestion. We model peak and offpeak slots as vertically differentiated products, and congestion limits the number of peak slots ... [more ▼]

This paper analyzes optimal slot allocation in the presence of airport congestion. We model peak and offpeak slots as vertically differentiated products, and congestion limits the number of peak slots that the airport can allocate. Inefficiency emerges when the airport does not exploit all its slots. We show that for a private airport, inefficiency may arise if the airport is not too congested and the per-passenger fee is small enough, while with a public airport it does not emerge. Furthermore the airport, irrespective of its ownership, tends to give different slots to flights with same destination if the underlying market is a duopoly, and a single slot if the underlying market is served by a monopoly. [less ▲]

Detailed reference viewed: 101 (12 UL)
See detailHow location affects friendship interactions
Patacchini, Eleonora; Picard, Pierre M UL; Zenou, Yves

in VOX (2015)

Little is known about how social interactions are affected by geographical distance. This column argues that students tend to interact more with those who are highly central in the network of social ... [more ▼]

Little is known about how social interactions are affected by geographical distance. This column argues that students tend to interact more with those who are highly central in the network of social contacts, and who are geographically closer. Geographical distance is then a hinder to social interactions. [less ▲]

Detailed reference viewed: 121 (12 UL)
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See detailJean Tirole: de la microéconomie à l'économie comportementale
Margherita, Antonia UL; Picard, Pierre M UL

Article for general public (2015)

Detailed reference viewed: 213 (30 UL)
See detailUrban social structure, social capital and spatial proximity
Patacchini, Eleonora; Picard, Pierre M UL; Zenou, Yves

E-print/Working paper (2015)

We develop a theoretical model where the existence and intensity of dyadic contacts depend on location. We show that agents tend to interact more with agents that are highly central in the network of ... [more ▼]

We develop a theoretical model where the existence and intensity of dyadic contacts depend on location. We show that agents tend to interact more with agents that are highly central in the network of social contacts and that are geographically closer. Using a unique geo-coded dataset of friendship networks in the United States, we find evidence consistent with this model. The main empirical challenge, which is the possible endogenous network formation, is tackled by employing a Bayesian methodology that allows to estimate simultaneously network formation and intensity of network contacts. [less ▲]

Detailed reference viewed: 93 (14 UL)
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See detailIs a Policy of Free Movemet of Workers Sustainable?
Picard, Pierre M UL; Worrall, Tim

in Scandinavian Journal of Economics (2015)

This paper studies the costs and benefits of the adoption of the policy of free movement for workers. For the countries to agree on uncontrolled movement of workers, the short run costs must be outweighed ... [more ▼]

This paper studies the costs and benefits of the adoption of the policy of free movement for workers. For the countries to agree on uncontrolled movement of workers, the short run costs must be outweighed by the long term benefits that result from better labor market flexibility and income smoothing. We show that such policies are less likely to be adopted when workers are impatient and less risk averse workers, when production technologies display decreasing returns and when countries trade a share of their products. [less ▲]

Detailed reference viewed: 58 (7 UL)
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See detailTrade, economic geography and the choice of product quality
Picard, Pierre M UL

in Regional Science & Urban Economics (2015), 54

The present paper studies the effect of the choice of product quality on trade and location of firms. We discuss a model where consumers have preferences for the quality of a set of differentiated ... [more ▼]

The present paper studies the effect of the choice of product quality on trade and location of firms. We discuss a model where consumers have preferences for the quality of a set of differentiated varieties. Firms do not only develop and sell manufacturing varieties in a monopolistic competitive market but also determine the quality level of their varieties by investing in research and development. We explore the price and quality equilibrium properties when firms are immobile. We then consider a footloose capital model where capital is allocated to the manufacturing firms in the region offering the highest return. We show that the larger region produces varieties of higher quality and that the quality gap increases with larger asymmetries in region sizes and with larger trade costs. Finally, the home market effect is mitigated when firms choose their product quality. [less ▲]

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See detailCurrency Areas and Voluntary Transfers
Picard, Pierre M UL; Worrall, Tim

E-print/Working paper (2015)

This paper discusses the relationship between the formation of a currency area and the use of voluntary fiscal transfers between countries. We show that there is a trade off between the benefits of ... [more ▼]

This paper discusses the relationship between the formation of a currency area and the use of voluntary fiscal transfers between countries. We show that there is a trade off between the benefits of flexible exchange rates and the additional risk sharing benefits of voluntary transfers that can be sustained in a currency area. We show that whether a currency area is beneficial or not will depend on the magnitude of economic parameter values. In particular, we show that in a simple two country model and for a plausible set of economic parameter values, a currency area is optimal. [less ▲]

Detailed reference viewed: 40 (5 UL)
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See detailThe Clean Development Mechanism in a Globalized Carbon Market
Bréchet, Thierry; Ménière, Yann; Picard, Pierre M UL

in Canadian Journal of Economics (2015)

This paper discusses the role of the Clean Development Mechanism (CDM) on the market for carbon quotas and countries’ commitments to reduce their carbon emission levels. We show that the CDM contributes ... [more ▼]

This paper discusses the role of the Clean Development Mechanism (CDM) on the market for carbon quotas and countries’ commitments to reduce their carbon emission levels. We show that the CDM contributes to an efficient funding of clean technology investments in least developed countries. However, the CDM is not neutral on the global level of carbon emissions as it entices countries to raise their emission caps. The CDM may also make inappropriate the inclusion of any country that takes no emission abatement commitment. It can even make inefficient a country’s decision to commit to an emission target. [less ▲]

Detailed reference viewed: 76 (18 UL)
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See detailProduct Unbundling in the Travel Industry: The Economics of Airline Bag Fees
Brueckner, Jan K.; Lee, Darin N.; Picard, Pierre M UL et al

in Journal of Economics & Management Strategy (2015), 24(3), 457-484

This paper provides theory and evidence on airline bag fees, offering insights into a real-world case of product unbundling. The theory predicts that an airline’s fares should fall when it introduces a ... [more ▼]

This paper provides theory and evidence on airline bag fees, offering insights into a real-world case of product unbundling. The theory predicts that an airline’s fares should fall when it introduces a bag fee, but that the full-trip price (the bag fee plus the new fare) could either rise or fall. The empirical evidence presented in the paper provides strong confirmation of the first prediction. The data also suggest that the average fare falls by less than the bag fee itself so that the full price of a trip rises for passengers who choose to check bags. [less ▲]

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See detailWhere and When to Invest in Infrastructure
Brueckner, Jan K; Picard, Pierre M UL

in Regional Science & Urban Economics (2014)

This paper analyzes an irreversible “where-and-when” investment decision, in which a government must decide not only when to invest in income-increasing infrastructure but also where to make the ... [more ▼]

This paper analyzes an irreversible “where-and-when” investment decision, in which a government must decide not only when to invest in income-increasing infrastructure but also where to make the investment, doing so under imperfect observability of the investment gains. The two models considered in the paper differ in the source of the imperfection. In the signal model, the imperfection comes from imperfect observability of initial income gains from the investment, while in the option model, it comes from the stochastic nature of the income gains in the second period. In addition to providing the first treatment of this type of problem, the analysis shows that the influences of underlying parameters on whether or not the government waits to invest are similar in the two models. [less ▲]

Detailed reference viewed: 175 (15 UL)
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See detailUrban Spatial Structure, Employment and Social Ties
Picard, Pierre M UL

Scientific Conference (2014, November)

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group ... [more ▼]

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group resides close to the job center while the minority group lives far away from it. Even though the two populations are ex ante totally identical, we find that the majority group experiences a lower unemployment rate than the minority group and tends to socially interact more with other workers of its own group. Within each group, we demonstrate that workers residing farther away from the job center tend to search less for a job and are less likely to be employed. This model is thus able to explain why ethnic minorities are segregated in the urban and social space and why this leads to adverse labor-market outcomes in the absence of any discrimination against the minority group. [less ▲]

Detailed reference viewed: 134 (10 UL)
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See detailUrban Spatial Structure, Employment and Social Ties
Picard, Pierre M UL; Zenou, Yves

Presentation (2014, October)

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group ... [more ▼]

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group resides close to the job center while the minority group lives far away from it. Even though the two populations are ex ante totally identical, we find that the majority group experiences a lower unemployment rate than the minority group and tends to socially interact more with other workers of its own group. Within each group, we demonstrate that workers residing farther away from the job center tend to search less for a job and are less likely to be employed. This model is thus able to explain why ethnic minorities are segregated in the urban and social space and why this leads to adverse labor-market outcomes in the absence of any discrimination against the minority group. [less ▲]

Detailed reference viewed: 109 (13 UL)
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See detailUrban Spatial Structure, Employment
Picard, Pierre M UL; Zenou, Yves

Presentation (2014, October)

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group ... [more ▼]

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group resides close to the job center while the minority group lives far away from it. Even though the two populations are ex ante totally identical, we find that the majority group experiences a lower unemployment rate than the minority group and tends to socially interact more with other workers of its own group. Within each group, we demonstrate that workers residing farther away from the job center tend to search less for a job and are less likely to be employed. This model is thus able to explain why ethnic minorities are segregated in the urban and social space and why this leads to adverse labor-market outcomes in the absence of any discrimination against the minority group. [less ▲]

Detailed reference viewed: 53 (10 UL)
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See detailUrban Spatial Structure, Employment and Social Ties
Picard, Pierre M UL; Zenou, Yves

E-print/Working paper (2014)

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group ... [more ▼]

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group resides close to the job center while the minority group lives far away from it. Even though the two populations are ex ante totally identical, we find that the majority group experiences a lower unemployment rate than the minority group and tends to socially interact more with other workers of its own group. Within each group, we demonstrate that workers residing farther away from the job center tend to search less for a job and are less likely to be employed. This model is thus able to explain why ethnic minorities are segregated in the urban and social space and why this leads to adverse labor-market outcomes in the absence of any discrimination against the minority group. [less ▲]

Detailed reference viewed: 103 (10 UL)
Full Text
See detailIs a Policy of Free Movement of Workers Sustainable?
Picard, Pierre M UL; Worrall, Tim

E-print/Working paper (2014)

This paper studies the costs and benefits of the adoption of the policy of free movement for workers. For the countries to agree on uncontrolled movement of workers, the short run costs must be outweighed ... [more ▼]

This paper studies the costs and benefits of the adoption of the policy of free movement for workers. For the countries to agree on uncontrolled movement of workers, the short run costs must be outweighed by the long term benefits that result from better labor market flexibility and income smoothing. We show that such policies are less likely to be adopted when workers are impatient and less risk averse workers, when production technologies display decreasing returns and when countries trade a share of their products. [less ▲]

Detailed reference viewed: 104 (17 UL)
See detailSustainable Migration Policies
Picard, Pierre M UL

Presentation (2014, February)

Detailed reference viewed: 79 (15 UL)
See detailCommodity taxation and regulatory competition
Picard, Pierre M UL

Presentation (2014, January)

Detailed reference viewed: 29 (8 UL)
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See detailCommodity taxation and regulatory competition
Moriconi, Simone; Picard, Pierre M UL; Zanaj, Skerdilajda UL

Presentation (2014, January)

This paper studies competition in regulation and commodity taxation between trading countries. We present a general equilibrium model in which destination based consumption taxes finance public goods ... [more ▼]

This paper studies competition in regulation and commodity taxation between trading countries. We present a general equilibrium model in which destination based consumption taxes finance public goods, while regulation of entry determines the number of firms in the markets. We find (i) no strategic interaction in commodity taxes; (ii) regulation leads to lower commodity tax rates if demand for public goods is more sensitive to income than demand for private goods and (iii) regulation policy is a strategically complement instrument if consumers do not over value product diversity. In the empirical part of the paper, we test our predictions using panel data for 21 OECD countries over the period 1990-2008. [less ▲]

Detailed reference viewed: 79 (20 UL)