http://hdl.handle.net/10993/73 Search this channel search http://orbilu.uni.lu/simple-search http://hdl.handle.net/10993/39256 Title: Risk Preferences and Refugee Migration <br/> <br/>Author, co-author: Joxhe, Majlinda Mon, 01 Apr 2019 12:01:13 GMT http://hdl.handle.net/10993/39255 Title: Mieux Comprendre le choix de demande d'asile au Luxembourg <br/> <br/>Author, co-author: Joxhe, Majlinda Mon, 01 Apr 2019 11:57:07 GMT http://hdl.handle.net/10993/39213 Title: The Role of Tuition Fees in Foreign Education: Evidence from Ital <br/> <br/>Author, co-author: Beine, Michel; Delogu, Marco; Ragot, Lionel <br/> <br/>Abstract: This paper studies the determinants of international students’ mobility at the uni- versity level, focusing specifically on the role of tuition fees. We derive a gravity model from a Random Utility Maximization model of location choice for international stu- dents in the presence of capacity constraints of the hosting institutions. The last layer of the model is estimated using new data on student migration flows at the university level for Italy. We control for the potential endogeneity of tuition fees through a clas- sical IV approach based on the status of the university. We obtain evidence for a clear and negative effect of fees on international student mobility and confirm the positive impact of the quality of the education. The estimations also support the important role of additional destination-specific variables such as host capacity, the expected return of education and the cost of living in the vicinity of the university. Thu, 28 Mar 2019 12:22:39 GMT http://hdl.handle.net/10993/39187 Title: Technological Progress, the Supply ofHours Worked, and the Consumption-Leisure Complementarity <br/> <br/>Author, co-author: Irmen, Andreas <br/> <br/>Abstract: At least since 1870 hours worked per worker declined and real wages increased in many of today’s industrialized countries. The dual nature of technological progress in conjunction with a consumption-leisure complementarity explains these stylized facts. Technological progress drives real wages up and expands the amount of available consumption goods. Enjoying consumption goods increases the value of leisure. Therefore, individuals demand more leisure and supply less labor. This mechanism appears in an OLG-model with two-period lived individuals equipped with per-period utility functions of the generalized log-log type proposed by Boppart-Krusell (2016). The optimal plan is piecewise defined and hinges on the wage level. Technological progress moves a poor economy out of a regime with low wages and an inelastic supply of hours worked into a regime where wages increase further and hours worked continuously decline. Wed, 27 Mar 2019 21:43:23 GMT http://hdl.handle.net/10993/39178 Title: Heterogeneity in Conformism, Firm Selection, and Home Bias <br/> <br/>Author, co-author: Picard, Pierre M; Kichko, Sergey <br/> <br/>Abstract: 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. Wed, 27 Mar 2019 20:08:43 GMT http://hdl.handle.net/10993/39177 Title: Trade and Vertical Differentiation <br/> <br/>Author, co-author: Picard, Pierre M; Tampieri, Alessandro <br/> <br/>Abstract: 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. Wed, 27 Mar 2019 19:55:57 GMT http://hdl.handle.net/10993/39153 Title: Income Inequality, Productivity, and International Trade <br/> <br/>Author, co-author: Picard, Pierre M; Hsu, Wen-Tai; Lin, Lu <br/> <br/>Abstract: 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. Wed, 27 Mar 2019 16:50:43 GMT http://hdl.handle.net/10993/39151 Title: Dissecting Network externalities in International Migration <br/> <br/>Author, co-author: Beine, Michel; Docquier, Frederic; Ozden, Caglar <br/> <br/>Abstract: Migrant networks play an important role in explaining the size and structure of migration flows. They affect the private costs and benefits of migration (assimilation channel) and lower legal entry barriers through family reunification programs (policy channel). This paper presents a microfounded identification strategy allowing to disentangle the relative importance of these two channels. Our empirical analysis exploits U.S. immigration data by metropolitan area and country of origin. We first confirm that the overall network externality is strong (the elasticity of migration flows to network size is around one). More interestingly, we show that only a quarter of this elasticity is accounted for by the policy channel for the 1990-2000 period, and the magnitudes of the total network effect and the policy channel are greater for low-skilled migrants. Our results are strongly robust to sample selection, identification assumptions, and treatment for unobserved bilateral heterogeneity. Finally, the policy channel was stronger in the 1990s than in the 1980s, possibly reflecting the changes in the U.S. family reunification policy. Wed, 27 Mar 2019 15:01:53 GMT http://hdl.handle.net/10993/39150 Title: Climatic factors as Determinants of Migration: Redux <br/> <br/>Author, co-author: Beine, Michel; Parsons, Christopher <br/> <br/>Abstract: In this paper, we revisit the issue of environmental change as a potential determinant of international migration, thereby providing an extension of our earlier paper. In contrast to Beine and Parsons (2015) and in light of recent empirical contributions, we adopt an alternative identification strategy in which we only include fixed effects together with our measures of climatic change in order to quantify the net partial effect of climatic change on bilateral migration. Again drawing on panel data from 1960-2000, we further exploit the dyadic dimension of our data to highlight the importance of neighbouring countries and former colonial powers in determining the direction of climate-induced emigration. Our baseline results suggest that climatic shocks affect individuals’ financial constraints more than their desire to move. Our key findings are that natural disasters tend to deter emigration but importantly spur emigration to neighbouring countries. For middle income origins, natural disasters, while deterring migration, foster emigration to former colonial powers. Wed, 27 Mar 2019 15:00:43 GMT http://hdl.handle.net/10993/39149 Title: Aggregate Fluctuations and International Migration <br/> <br/>Author, co-author: Beine, Michel; Bricongne, Jean-Charles; Bourgeon, Pauline <br/> <br/>Abstract: Traditional theories of integration such as the optimum currency area approach attribute a prominent role to international labour mobility in coping with relative economic fluctuations between countries. However, recent studies on international migration have overlooked the role of short-run factors such as business cycles or changes in employment rates in explaining international migration flows. This paper aims to fill that gap. We first derive a model of optimal migration choice based on an extension of the traditional Random Utility Model. Our model predicts that an improvement in the economic activity in a potential destination country relative to any origin country may trigger some additional migration flows on top of the impact exerted by long-run factors such as the wage differential or the bilateral distance. Compiling a dataset with annual gross migration flows between most developed countries over the 1980-2010 period, we empirically test the magnitude of the effect of these short-run factors on bilateral flows. Our econometric results indicate that aggregate fluctuations and employment rates affect the intensity of bilateral migration flows. We also provide compelling evidence that the Schengen agreement and the introduction of the euro significantly raised the international mobility of workers between the member countries. Wed, 27 Mar 2019 15:00:16 GMT http://hdl.handle.net/10993/39010 Title: A preliminary assessment of the effects of migration on the production structure in Europe: A labor task approach <br/> <br/>Author, co-author: Joxhe, Majlinda; De Arcangelis, Giuseppe; Borelli, Stefania <br/> <br/>Abstract: We assess the e ffect of migration on the production structure in a selection of European countries for the pre-Great Recession period 2001-2009. We propose a labor-task approach where the inflow of migrants raises the relative supply of manual-physical (or simple) tasks and therefore favors simple-task intensive sectors. We use the US O*NET database in conjunction with European labor data to calculate the index of simple-task intensity at the industry and country level. The analysis confi rms that a rise in employment migration rates has a generalized positive impact, but that value-added increases signi ficantly more in sectors that use more intensively simple tasks. A traditional shift-share instrument is used to overcome possible endogeneity problems. Mon, 11 Mar 2019 14:11:30 GMT http://hdl.handle.net/10993/39009 Title: Risk Preferences and Refugee Migration <br/> <br/>Author, co-author: Joxhe, Majlinda Mon, 11 Mar 2019 14:03:02 GMT http://hdl.handle.net/10993/37894 Title: L'euro en quête d'un nouveau souffle <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: L’euro est l’une des grandes aventures du XXe siècle. Pour la première fois des pays égaux et souverains consentent d’abandonner leurs monnaies nationales - symbole intrinsèque aux États nations - pour créer une monnaie unique gérée par une nouvelle institution, une banque centrale à l’échelon de l’Europe. Si l’euro ressemble davantage à un instrument technique pour une meilleure intégration économique, il représente surtout une construction institutionnelle originale et une forte avancée politique, néanmoins incomplète. Tue, 01 Jan 2019 08:58:29 GMT http://hdl.handle.net/10993/36970 Title: Commodity taxation and regulatory competition <br/> <br/>Author, co-author: Zanaj, Skerdilajda; Picard, Pierre M; Moriconi, Simone <br/> <br/>Abstract: 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. Wed, 17 Oct 2018 16:28:07 GMT http://hdl.handle.net/10993/36067 Title: "Rien n'est possible sans les hommes, rien n'est durable sans les institutions" <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: Le 19 juin 1983, au Conseil européen de Stuttgart, le Premier Ministre, Pierre Werner, signe la Déclaration solennelle sur l'Union européenne. Ce document programmatique affirme la nécessité de « progresser vers une union toujours plus étroite entre les peuples et les États membres » et considère l’amélioration des institutions communautaires et la coopération politique comme clé de voûte pour plus d’Europe. Trente-cinq ans plus tard, ces desiderata trouvent un ample écho dans l’actualité. <br/> <br/>Commentary: Le cadre institutionnel européen puise ses racines dans la Déclaration du 9 mai 1950, inspirée par Jean Monnet et présentée par Robert Schuman, qui propose la création d’une Communauté européenne du charbon et de l’acier (CECA) dotée d’une institution supranationale - la Haute Autorité, dont le Luxembourg devient en 1952 lieu de travail, grâce à l’intelligence politico-diplomatique de Joseph Bech. Le plan Schuman envisageait la CECA comme la première étape vers une intégration économique générale et, finalement, vers une fédération politique. Au gré des traités et des élargissements successifs, l’architecture institutionnelle est forgée par le double impératif de l’efficacité et de la démocratie, mais l’équilibre entre éléments supranationaux et intergouvernementaux n’est pas facile à trouver. En témoignent le rejet par la France du Général de Gaulle de l’esquisse d’une Communauté politique et de la Communauté européenne de défense (1954). Mon, 02 Jul 2018 13:34:39 GMT http://hdl.handle.net/10993/35596 Title: Demographics and FDI: Lessons from China's one-child policy <br/> <br/>Author, co-author: Donaldson, John; Koulovatianos, Christos; Li, Jian; Mehra, Rajnish <br/> <br/>Abstract: China’s one-child policy increased its capital-labour ratio and reduced FDI inflows relative to India, consistent with neoclassical fundamentals Fri, 04 May 2018 18:14:21 GMT http://hdl.handle.net/10993/35387 Title: Economists vs Monetarists – the main controversy in shaping EMU through the Werner Report <br/> <br/>Author, co-author: Danescu, Elena Thu, 29 Mar 2018 13:20:07 GMT http://hdl.handle.net/10993/35384 Title: Risk and Refugee Migration <br/> <br/>Author, co-author: Joxhe, Majlinda; Bocqueho, Geraldine; Helstroffer, Jenny; Deschamps, Marc; Jacob, Julien <br/> <br/>Abstract: This paper uses the experimental setup of Tanaka et al. (2010) to measure refugees’ risk preferences. A sample of 206 asylum seekers was interviewed in 2017-18 in Luxembourg. Contrary to studies which focus on risk aversion in general, we analyze its components using a cumulative prospect theory (CPT) framework. We show that refugees exhibit particularly low levels of risk aversion compared to other populations and that CPT provides a better fit for modelling risk attitudes. Moreover, we include randomised temporary treatments provoking emotions and find a small significant impact on probability distortion. Robustness of the Tanaka et al. (2010) experimental framework is confirmed by including treatments regarding the embedding effect. Finally, we propose a theoretical model of refugee migration that integrates the insights from our experimental outcomes regarding the functional form of refugees’ decision under risk and the estimated parameter values. The model is then simulated using the data from our study. Thu, 29 Mar 2018 12:46:47 GMT http://hdl.handle.net/10993/35333 Title: Pierre Werner and Europe: The Family Archives Behind the Werner Report. Foreword by Jean-Claude Juncker, President of the European Commission, and Foreword by Professor Harold James (Princeton University) <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: This book - which features a foreword by Jean-Claude Juncker, President of the European Commission, and a Preface by Professor Harold James (Princeton Unviersity) -examines the European vocation and achievements of Pierre Werner (1913–2002),former Prime Minister, Finance Minister and Foreign Minister of Luxembourg, unanimously recognized as one of the architects of the Economic and Monetary Union. The author makes extensive use of Pierre Werner’s previously unpublished archives belonging to the Werner family, opened for the first time for research purposes. The book analyses the Werner Report, negotiations within the Werner Committee, the emergence of the Committee’s views on EMU, their political commitment to a European currency, the similarities and differences between their ideas, their personal networks, the influence of the states they represented, their theoretical and methodological input and their contribution to the political consensus. Chapters shed new light on various aspects of the European integration process and also on the role of Luxembourg and its European policy. In addition, the author has carried out a series of original interviews with Luxembourg and European figures who share their memories and thoughts concerning Pierre Werner, his achievements and his views on the European integration process, and also other topics such as the Economic and Monetary Union and Luxembourg‘s European policy. This book will be of interest and value to researchers, EU policy makers and students in the fields of political economy, political science, economic history and history of economic thought. Sat, 24 Mar 2018 08:11:15 GMT http://hdl.handle.net/10993/35332 Title: Through a century of change: portrait of a pragmatic visionary <br/> <br/>Author, co-author: Danescu, Elena <br/> <br/>Abstract: As Prime Minister and Finance Minister of Luxembourg over several decades, Pierre Werner shaped the future of his country and was one of the rare statesmen to play a part in the progress of European integration until the mid-1980s. He played a major role in regional integration (BLEU, Benelux) and in EEC policy-making and gained a strong reputation for forging a political consensus between larger powers (Germany and France)and between diametrically opposed positions (‘economists’ vs ‘monetarists’). In this way he succeeded in defending Luxembourg’s vital interests, from the financial centre to the seats of the European institutions. Werner was involved in the major ideological debates of the time. Although initially in favour of a monetary approach, Werner was one of the first to develop arguments for a symmetrical economic and monetary union. Sat, 24 Mar 2018 08:01:44 GMT