How do firms respond to cheaper computers? Microeconometric evidence for France based on a production function approach

The continuous innovation process experienced by the information technology industries over the last decades has caused the price of computer power to decrease dramatically. This has led many firms to invest massively in increasingly efficient computers. This paper is an attempt to assess the impact of the fall of the cost of this particular input, on the performances of firms in terms of marginal cost, aggregate labor demand and employment by skill. Unlike most studies dealing with the technological bias issue, most of which rely on the estimation of factor demand equations, our evaluation of the complementarities between computers, skilled and unskilled labor rests on the sole estimation of a production function. We define a set of parameters of interest, depending on the observations and on the structural parameters of the production function, enabling us to examine the impact of the computer price decrease on marginal cost, labor demand and the relative demand for skills. Using a panel of more than 5000 continuing French firms followed between 1994 and 1997, we estimate a translog production function and find that the effects of the decrease in the price of computers have been large, both in terms of marginal cost reduction and in terms of skill structure. A 15% fall of the computer price should lead to a decrease of around 0.7% in the marginal cost of production and to a rise of about 3.5% of the skilled to unskilled ratio, other input prices being held fixed.Computers, production function, marginal cost, factor demands, technological bias

The cost of air pollution abatement for French firms: An estimation at the firm-level

We estimate the technology of air pollution abatement, defined as a relation between conventional production, emissions and the inputs specifically allocated to the environmental protection. We use original firm-level data on both air emissions and investments in abatement equipment. We deal with endogeneity issues by exploiting some regional heterogeneity in the performance standards imposed to the firms. Carrying out estimations on an unbalanced panel of 1463 observations over the period 1995-1999, we find that the abatement marginal cost for sulfur dioxides exceeds several times the French current tax rate. This suggests that, for this pollutant, the level of emissions is currently much more determined by the performance standards than by the tax. We cannot conclude as far as the three other considered pollutants are concerned.technology, pollution abatement, environmental regulation, generalized method of moments

Do environmental regulations influence the location behavior of French firms?

The aim of this paper is to evaluate the impact of environmental regulations on the location choices by French firms of their industrial activities. We examine a sample of 3,856 import flows of French firms from foreign industrial subsidiaries in 1999. We first observe that the most pollution intensive goods are paradoxically imported relatively more from the most environmentally stringent countries. Then, we develop a simple static model based on the production cost minimization in order to control for heterogeneous factor costs within countries, distinguishing skilled labor, unskilled labor and capital. However, even with taking these effects into account, the pollution intensity of the imported goods remains positively related to the environmental stringency of the country where they are produced. This suggests that environmental compliance costs are not a major determinant of location compared to other effects, which are not limited to factor costs and can include, for example, agglomeration effects.environmental regulation, relocation, industrial multinational companies

Is the transmission of crude oil prices to gasoline prices asymmetric?

This paper provides evidence based on French macroeconomic data, that shocks on the cost of oil inputs are transmitted asymmetrically to the prices of fuel. We use an error correction model to estimate the dynamics of the transmission of the cost of crude oil expressed in French currency, to the production and before taxes retail prices of several kinds of fuel. We simulate the responses of the production and retail prices to positive as well as negative shocks affecting the cost of crude oil for three kinds of fuel: premium, diesel oil and domestic fuel oil. We also test for the presence of asymmetries in the transmission of crude oil to retail prices for two kinds of unleaded premium. The results for all five products robustly point to the existence of an asymmetry in the overall transmission of positive and negative cost shocks to prices, in the sense that crude oil cost increases are added to retail fuel prices faster than decreases are substracted. In the case of diesel oil, the asymmetry turns out to be significant at the production as well as the distribution stages. For domestic fuel oil, however, only firststage (production) asymmetries are significant, whereas for premium only secondstage (distribution) asymmetries may be robustly pointed out. Finally, measured asymmetry lengths range from one month to one quarter.prices, oil, asymmetry, error correction models, bootstrap

Tuning and Locking the Localized Surface Plasmon Resonances of CuS (Covellite) Nanocrystals by an Amorphous CuPdxS Shell

[Image: see text] We demonstrate the stabilization of the localized surface plasmon resonance (LSPR) in a semiconductor-based core–shell heterostructure made of a plasmonic CuS core embedded in an amorphous-like alloyed CuPd(x)S shell. This heterostructure is prepared by reacting the as-synthesized CuS nanocrystals (NCs) with Pd(2+) cations at room temperature in the presence of an electron donor (ascorbic acid). The reaction starts from the surface of the CuS NCs and proceeds toward the center, causing reorganization of the initial lattice and amorphization of the covellite structure. According to density functional calculations, Pd atoms are preferentially accommodated between the bilayer formed by the S–S covalent bonds, which are therefore broken, and this can be understood as the first step leading to amorphization of the particles upon insertion of the Pd(2+) ions. The position and intensity in near-infrared LSPRs can be tuned by altering the thickness of the shell and are in agreement with the theoretical optical simulation based on the Mie–Gans theory and Drude model. Compared to the starting CuS NCs, the amorphous CuPd(x)S shell in the core–shell nanoparticles makes their plasmonic response less sensitive to a harsh oxidation environment (generated, for example, by the presence of I(2))

Deep subsurface carbon cycling in the Nankai Trough (Japan)-Evidence of tectonically induced stimulation of a deep microbial biosphere

The abundance of microbial life and the sources of energy necessary for deep subsurface microbial communities remain enigmatic. Here we investigate deep microbial processes and their potential relationships to tectonic events in sediments from the Nankai Trough offshore Japan, drilled and sampled during IODP (Integrated Ocean Drilling Program) Expedition 316. Observed methane isotope profiles indicate that microbially mediated methane production occurs at Sites C0006 and C0007 in sediments below ∼450 meters below seafloor (mbsf) and ∼425 mbsf, respectively. The active carbon cycling in these deep subsurface sediments is likely related to the highly dynamic tectonic regime at Nankai Trough. We propose that transient increases in temperature have restimulated organic matter degradation at these distinct depths and explore several candidate processes for transient heating. Our favored hypothesis is frictional heating associated with earthquakes. In concert with transient heating leading to the reactivation of recalcitrant organic matter, the heterogeneous sedimentary system provides niches for microbial life. The newly available/accessible organic carbon compounds fuel the microbial community—resulting in an onset of methanogenesis several hundred meters below the seafloor. This process is captured in the methane C-isotope signal, showing the efficacy of methane C-isotopes for delineating locations of active microbial processes in deeply buried sediments. Additionally, simple model approaches applied to observed chemical pore water profiles can potentially constrain timing relationships, which can then be linked to causative tectonic events. Our results suggest the occurrence of slip-to-the-trench earthquake(s) 200–400 year ago, which could relate to historical earthquakes (1707 Hoei and/or 1605 Keicho earthquakes)