References of "Picard, Pierre M 50002853"
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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 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 ▲]

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See detailPascal Spatial segregation and urban structure
Picard, Pierre M UL

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

In this paper, we develop a model of spatial segregation mediated by competitive land prices. Agents of two groups consume city land and benefit from social interactions. Because of cultural or ethnic ... [more ▼]

In this paper, we develop a model of spatial segregation mediated by competitive land prices. Agents of two groups consume city land and benefit from social interactions. Because of cultural or ethnic differences, intragroup interactions are more frequent than intergroup ones. When group sizes differ, population groups sort into distinct neighborhoods. We characterize two‐ and three‐district urban structures. For high population ratios or strong intergroup interactions, only a three‐district city exists. In other cases, multiplicity of equilibria arises. Both groups generally rank these equilibria differently. However, when group sizes are similar, all individuals agree on which spatial equilibrium is best. [less ▲]

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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 ▲]

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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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See detailAirport capacity and inefficiency in slot allocation
Picard, Pierre M UL; wan, xi; Tampieri, Alessandro

in International Journal of Industrial Organization (2019), 62

This paper studies the time slot allocation of flight departures when travelers have a preference for departing on peak times and the number of available peak-time slots is constrained by airport ... [more ▼]

This paper studies the time slot allocation of flight departures when travelers have a preference for departing on peak times and the number of available peak-time slots is constrained by airport capacities. We show that, compared to public airports, private airports may restrain their supply of peak slots strictly below their capacity levels when they serve airlines that compete to the same destinations. Such an inefficiency takes place in airports that have low per-passenger charges and are not too busy. It does not occur in the absence of competition in destination markets. [less ▲]

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See detailTrade and Vertical Differentiation
Picard, Pierre M UL; Tampieri, Alessandro

E-print/Working paper (2019)

This paper discusses a trade model with many countries, many goods produced in multiple quality versions, and non-homothetic preferences. It embeds in the same model a series of results that have been ... [more ▼]

This paper discusses a trade model with many countries, many goods produced in multiple quality versions, and non-homothetic preferences. It embeds in the same model a series of results that have been empirically confirmed: high-income countries specialize in the production of high-quality goods and trade more of those. Richer countries purchase more high-quality varieties. They import more high-quality products from the most productive exporters. The paper then studies the impact of productivity and population changes on the quality composition of exports. It finally explains why countries import higher quality goods from more distant countries. [less ▲]

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See detailSpatial segregation and urban structure
Picard, Pierre M UL; mossay, pascal

in Journal of Regional Science (2019), 59(3), 480-507

In this paper, we develop a model of spatial segregation mediated by competitive land prices. Agents of two groups consume city land and benefit from social interactions. Because of cultural or ethnic ... [more ▼]

In this paper, we develop a model of spatial segregation mediated by competitive land prices. Agents of two groups consume city land and benefit from social interactions. Because of cultural or ethnic differences, intra-group interactions are more frequent than inter-group ones. When group sizes differ, population groups sort into distinct neighborhoods. We characterize two- and three-district urban structures. For high population ratios or strong inter-group interactions, only a three-district city exists. In other cases, multiplicity of equilibria arises. Both groups generally rank these equilibria differently. However, when group sizes are similar, all individuals agree on which spatial equilibrium is best. [less ▲]

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See detailGreen Urban Areas
Picard, Pierre M UL; Tran, Thi Thu Huyen UL

E-print/Working paper (2019)

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

This paper studies the size and location of urban green areas across city spaces. Urban green areas offer amenities that affect residential choices, land consumption and land rent. This paper discusses the socially optimal sizes and locations of urban green areas within a city and their decentralized allocation through land markets. The main result is that the share of land dedicated to urban green areas is a concave 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. The importance of urban green areas is finally assessed by a counterfactual analysis, where 50% of urban green areas are removed in each city. [less ▲]

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See detailState‐owned firms and private debt
Picard, Pierre M UL; rusli, ridwan

in Journal of Public Economic Theory (2018), 20(5), 672-702

We study the role of private debt financing in reducing government transfers and information costs in a state‐owned firm. We show that debt contracts allow the government to reduce socially costly ... [more ▼]

We study the role of private debt financing in reducing government transfers and information costs in a state‐owned firm. We show that debt contracts allow the government to reduce socially costly subsidies by letting underperforming state‐owned firms default. When the firm has private information, the government uses debt to reduce the firm's information rents. The option of default and privatization allows the government to stop subsidizing the firm. We identify the conditions under which information costs outweigh privatization costs and a positive debt level benefits governments. [less ▲]

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See detailUrban spatial structure, employment and social ties
Picard, Pierre M UL; zenou, yves

in Journal of Urban Economics (2018), 104(C), 77-93

Consider a model where workers from the majority and the minority group choose both their residential location (geographical space) and the intensity of their social interactions (social space). We ... [more ▼]

Consider a model where workers from the majority and the minority group choose both their residential location (geographical space) and the intensity of their social interactions (social space). We demonstrate under which condition one group resides close to the job center while the other lives far away from it. Even though the two groups have the same characteristics and there is no discrimination in the housing or labor market, we show that the majority group can have a lower unemployment rate whenever it resides close to or far away from the workplace. This is because this group generates a larger and better-quality social network. [less ▲]

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See detailHeterogeneity in Conformism, Firm Selection, and Home Bias
Picard, Pierre M UL; Kichko, Sergey

E-print/Working paper (2018)

This paper discusses the impact of conformism on product quality, firm selection, and trade patterns. It shows that when consumers have a higher degree of conformism and/or their distribution of ... [more ▼]

This paper discusses the impact of conformism on product quality, firm selection, and trade patterns. It shows that when consumers have a higher degree of conformism and/or their distribution of conformism becomes more concentrated, the equilibrium average demand falls while product quality rises in a closed economy. In an international trade context, this strengthens the home consumption bias when consumers conform to the behavior of local people. The home bias is mitigated under globalization where individuals tend to conform to people worldwide. The paper also discusses the conditions under which conformism and conspicuousness are reconciled. [less ▲]

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See detailIncome Inequality, Productivity, and International Trade
Picard, Pierre M UL; Hsu, Wen-Tai; Lin, Lu

E-print/Working paper (2018)

This paper discusses the effect of income inequality on selection and aggregate productivity in a general equilibrium model with non-homothetic preferences. It shows the existence of a negative ... [more ▼]

This paper discusses the effect of income inequality on selection and aggregate productivity in a general equilibrium model with non-homothetic preferences. It shows the existence of a negative relationship between the number and quantity of products consumed by an income group and the earnings of other income groups. It also highlights the negative effect of a mean-preserving spread of income on aggregate productivity through the softening of firms’ selection. This effect is however mitigated in the presence of international trade. In a quantitative analysis, it is shown that an excessively large mean-preserving spread of income may harm the rich as it raises firms’ markups on their purchases. This is contrary to the general belief that income inequality benefits the rich. [less ▲]

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See detailExtensive and intensive margins and exchange rate regimes
Picard, Pierre M UL; hamano, masahige

in Canadian Journal of Economics (2017), 50(3), 804-837

This paper studies the costs and benefits of fixed and flexible exchange rate regimes in the presence of endogenous intensive and extensive margins of trade. The net benefit depends on the levels and ... [more ▼]

This paper studies the costs and benefits of fixed and flexible exchange rate regimes in the presence of endogenous intensive and extensive margins of trade. The net benefit depends on the levels and volatilities of those margins as well as on their correlation with consumers preferences. A fixed exchange rate regime is preferred for sufficiently high labour supply elasticities and lower love for product diversity. Delays between entry and production make fixed exchange rate regimes less attractive. [less ▲]

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See detailEquilibrium and first-best city with endogenous exposure to local air pollution from traffic
Schindler, Mirjam UL; Caruso, Geoffrey UL; Picard, Pierre M UL

in Regional Science and Urban Economics (2017), 62

Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and ... [more ▼]

Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and investigates the feedback effect of endogenous pollution on residential choices. The presence of stronger traffic-induced air pollution exposure reduces the geographical extent and the population of cities. Land rents fall with distance from the city center while population densities may be non-monotonic. Cleaner vehicle technologies reduce pollution exposure everywhere, increase population and density everywhere and do not affect the spatial extent of the city. The paper compares the urban equilibrium with the first-best. The first-best structure is a less expanded city with higher densities at the center and lower densities at the fringe. [less ▲]

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See detailUrban Structures with Forward and Backward Linkages
Picard, Pierre M UL; Mossay, Pascal; Tabuchi, Takatoshi

E-print/Working paper (2017)

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

We study urban structures driven by demand and vertical linkages in the presence of increasing returns to scale. Individuals consume local 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, intensities of demand and vertical linkages, and urbanization in affecting these patterns. We show that multiple equilibria may arise in equilibrium involving the monocentric city and up to a couple of duocentric and partially integrated structures. [less ▲]

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See detailUrban Interactions
Picard, Pierre M UL; Jun Sung, Kim; Patacchini, Eleonora et al

E-print/Working paper (2017)

This paper studies social-tie formation when individuals care about the geographical location of other individuals. In our model, the intensity of social interactions can be chosen at the same time as ... [more ▼]

This paper studies social-tie formation when individuals care about the geographical location of other individuals. In our model, the intensity of social interactions can be chosen at the same time as friends. We characterize the equilibrium in terms of both social interactions and social capital (the value of social interactions offered by each agent) for a general distribution of individuals in the urban geographical space. We show that greater geographical dispersion decreases the incentives to socially interact. We also show that the equilibrium frequency of interactions is lower than the effcient one. Using a unique geo-coded dataset of friendship networks among adolescents in the United States, we estimate the model and validate that agents interact less than the social first best optimum. Our policy analysis suggests that, given the same cost, subsidizing social interactions yields a higher total welfare than subsidizing transportation costs. [less ▲]

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See detailEquilibrium and first-best city with endogenous exposure to local air pollution from traffic
Schindler, Mirjam UL; Caruso, Geoffrey UL; Picard, Pierre M UL

E-print/Working paper (2016)

Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and ... [more ▼]

Exposure to urban traffic-induced air pollution is a major health concern of cities. This paper analyzes the urban structure when localized pollution exposure arises from commuting traffic and investigates the feedback effect of endogenous pollution on residential choices. The presence of stronger traffic-induced air pollution exposure reduces the geographical extent and the population of cities. Land rents fall with distance from the city center while population densities may be non-monotonic. Cleaner vehicle technologies reduce pollution exposure everywhere, increase population and density everywhere and do not affect the spatial extent of the city. The paper compares the urban equilibrium with the first-best. The first-best structure is a less expanded city with higher densities at the center and lower densities at the fringe. [less ▲]

Detailed reference viewed: 215 (18 UL)