Technical progress in North and welfare gains in South under nonhomothetic preferences

The paper proposes a theoretical model investigating the welfare consequences of technological shocks in a Ricardian framework (a la Dornbush, Fisher and Samuelson, 1977). Contrary to existing literature, the model incorporates a nonhomothetic demand function whose price and income elasticities are endogenously determined by technology. The model is applied to the case of trade between two economies with different development levels. It is shown in particular that the developing country can experience a fall in utility as a result of technical progress in the developed country. This result depends on the type of technological shock assumed (biased vs uniform technical progress), as well as on the size of the development gap.Dornbush-Fisher-Samuelson Ricardian model ; technology and trade ; North-South trade ; nonhomothetic preferences ; hierarchic needs ; hierarchic purchases

Technical progress in North and welfare gains in South under nonhomothetic preferences

The paper proposes a theoretical model investigating the welfare consequences of technological shocks in a Ricardian framework (a la Dornbush, Fisher and Samuelson, 1977). Contrary to existing literature, the model incorporates a nonhomothetic demand function whose price and income elasticities are endogenously determined by technology. The model is applied to the case of trade between two economies with different development levels. It is shown in particular that the developing country can experience a fall in utility as a result of technical progress in the developed country. This result depends on the type of technological shock assumed (biased vs uniform technical progress), as well as on the size of the development gap.Nous proposons un modèle d'inspiration classique (de type Dornbush, Fisher et Samuelson, 1977) qui incorpore une fonction de demande non homothétique et dont les fondements microéconomiques expriment une hiérarchisation des besoins. Contrairement aux modèles de la littérature existante, nous établissons une relation directe entre progrès technique et valeur des élasticités de la demande. Le modèle proposé est appliqué au cas de deux économies de niveaux de développement différents et est utilisé pour analyser l'impact du progrès technique sur le bien-être. Nous montrons que le pays en développement peut connaître une baisse de son utilité suite à un progrès technique dans le pays développé. Cette configuration dépend du type de choc technologique supposé (biaisé vers les biens les plus sophistiqués) et de l'écart de niveau de développement

Institutions, unemployment and inactivity in the OECD countries

This paper provides new evidence on the linkages between a large array of institutional arrangements (on product, labour and financial markets) and employment performance. Our analysis includes unemployment, inactivity and jobless rates, thus allowing us to control for possible substitution effects across situations of non-employment and to check whether institutional rigidities affecting unemployment impact inactivity along the same line. To cope with common problems related to the inclusion of time-invariant institutional variables in fixed effects models, we present results of regressions based on three different estimators: PCSE, GLS and FEVD, the last one being a new procedure specifically designed to treat slowly changing variables. New institutional series are proposed, namely to account for unemployment insurance net replacement rates and employment protection legislation (EPL). Among other results, we find strong evidence of a positive effect of EPL on employment performance as well as of possible complementarities across product and labour markets regulation.unemployment ; inactivity ; institutions ; time-invariant variables

Competition, Innovation and Distance to Frontier

According to a recent literature, the positive effect of competition is supposed to be growing with the proximity to the technological frontier. Using a variety of indicators, the paper tests the effect of competition and regulation on innovative activity measured by patenting. The sample consists of a panel of 15 industries for 17 OECD countries over the period 1979-2003. Results show no evidence of a positive effect of competition growing with the proximity to the frontier. Two main configurations emerge. First, regulation has a positive effect whatever the distance to the frontier and the magnitude of its impact is higher the closer the industry is to the frontier. Second, the effect of regulation is negative far from the frontier and becomes positive (or non significant) when the technology gap decreases. These results contradict the belief in the innovation-boosting effect of product market deregulation such as taken into account in the Lisbon Strategy.Innovation, competition, distance to frontier.

Stratégie de Lisbonne et Réformes structurelles en Europe

Accessible en ligne : http://www.ires.fr/images/files/Revues/R60-3.pdfInternational audienc

Institutions, unemployment and inactivity in the OECD countries

This paper provides new evidence on the linkages between a large array of institutional arrangements (on product, labour and financial markets) and employment performance. Our analysis includes unemployment, inactivity and jobless rates, thus allowing us to control for possible substitution effects across situations of non-employment and to check whether institutional rigidities affecting unemployment impact inactivity along the same line. To cope with common problems related to the inclusion of time-invariant institutional variables in fixed effects models, we present results of regressions based on three different estimators: PCSE, GLS and FEVD, the last one being a new procedure specifically designed to treat slowly changing variables. New institutional series are proposed, namely to account for unemployment insurance net replacement rates and employment protection legislation (EPL). Among other results, we find strong evidence of a positive effect of EPL on employment performance as well as of possible complementarities across product and labour markets regulation

Le recul de l’emploi industriel en France entre 1980 et 2007. Ampleur et principaux déterminants : un état des lieux

Demmou Lilas. Le recul de l’emploi industriel en France entre 1980 et 2007. Ampleur et principaux déterminants : un état des lieux. In: Economie et statistique, n°438-440, 2010. pp. 273-296

Déterminants et nature des spécialisations Nord-Sud : quelques enseignements tirés de la littérature empirique

The theoretical frameworks used to analyse specialisations between countries with different levels of development are generally drawn from the classical and neo-classical theories of comparative advantage. I survey the empirical literature devoted to these two approaches and establish three main stylised facts. Firstly, inter- and intra-sectoral studies confirm the relevance of a Ricardian approach in apprehending the determinants of specialisations. Secondly, the absence of total specialisation on a sectoral level, which is inconsistent with Ricardian theory, can be explained by intra-sectoral heterogeneity resulting from the use of accounting conventions. Consequently, the verification of comparative advantages requires the construction of other aggregates identifying the differences in the nature of North-South specialisations. Lastly, the link between the nature of specialisations and the level of development is conditioned by the sophistication and diversity of the goods supplied. The integration of these characteristics into a model is no light matter, and it has powerful theoretical implications.Comparative advantages , Ricardo , HOS , North-South specialisations

Competition, Innovation and Distance to Frontier

URL des Documents de travail : http://ces.univ-paris1.fr/cesdp/CESFramDP2008.htmClassification JEL : O30, L16.Documents de travail du Centre d'Economie de la Sorbonne 2008.64 - ISSN : 1955-611XAccording to a recent literature, the positive effect of competition is supposed to be growing with the proximity to the technological frontier. Using a variety of indicators, the paper tests the effect of competition and regulation on innovative activity measured by patenting. The sample consists of a panel of 15 industries for 17 OECD countries over the period 1979-2003. Results show no evidence of a positive effect of competition growing with the proximity to the frontier. Two main configurations emerge. First, regulation has a positive effect whatever the distance to the frontier and the magnitude of its impact is higher the closer the industry is to the frontier. Second, the effect of regulation is negative far from the frontier and becomes positive (or non significant) when the technology gap decreases. These results contradict the belief in the innovation-boosting effect of product market deregulation such as taken into account in the Lisbon Strategy.Ce papier teste les effets de la concurrence et de la réglementation sur l'activité d'innovation mesurée à l'aide de brevets. Divers indicateurs sont utilisés : le nombre relatif de firmes dans un secteur ainsi que des indicateurs de réglementation des marchés des biens et services. L'échantillon comprend un panel de 15 industries pour 17 pays de l'OCDE sur la période 1979-2003. Les résultats sont que l'effet positif de la concurrence sur l'innovation supposé être à son maximum lorsque l'économie s'approche de la frontière technologique mondiale est introuvable. Deux configurations émergent. Dans la première, la réglementation a un effet positif sur l'innovation quelle que soit la distance à la frontière et son impact est d'autant plus grand qu'on se rapproche de la frontière. Dans la deuxième, l'effet de la réglementation est de diminuer l'innovation loin de la frontière et devient favorable à l'innovation (parfois non significatif) lorsque l'écart technologique diminue. Ces résultats contredisent la croyance dans l'effet d'incitation à l'innovation d'une augmentation de la concurrence qui est sous-jacente à la stratégie de Lisbonne