Publications of the Chair

Economic networks: Heterogeneity-induced vulnerability and loss of synchronization

2017
Authors :
Michaël Ghil, Celian Colon

Interconnected systems are prone to propagation of disturbances, which can undermine their resilience to external perturbations. Propagation dynamics can clearly be affected by potential time delays in the underlying processes. We investigate how such delays influence the resilience of production networks facing disruption of supply.

Using Output-Based Allocations to Manage Volatility and Leakage in Pollution Markets

2017
Authors :
Guy Meunier, Juan-Pablo Montero and Jean-Pierre Ponssard

Output-based allocations (OBAs) are typically used in emission trading schemes to mitigate leakage in sectors at risk. Recent work has shown they may also help to stabilize prices in markets subject to supply and demand shocks. We extend previous work to simultaneously include both leakage and volatility.

Output-based allocations in pollution markets with uncertainty and self-selection

2017
Authors :
Guy Meunier, Juan-Pablo Montero, Jean-Pierre Ponssard.

The paper studies pollution permit markets in which a fraction of permits are allocated to firms based on their output. Output-based allocations, which are receiving increasing attention in the design of carbon markets around the world are shown to be optimal under demand and supply volatility despite the output distortions they may create. 

Debt and Investment in the Keen model: a Reappraisal of Modeling Minsky

2017
Authors :
Adrien Nguyen-Huu, Antonin Pottier.

We examine to which extent the Keen model (Keen 1995) is a faithful modelling of Minsky's Finance. We conclude that the Keen crisis has few Minskian flavours.

Global trends in metal consumption and supply element: the raw material–energy nexus

2017
Authors :
Cyril François, Gael Giraud, Fatma Rostom, Olivier Vidal

The consumption of mineral resources and energy has increased exponentially over the last 100 years. Further growth is expected until at least the middle of the 21st century. In order to meet this demand, more metals will have to be produced by 2050 than over the last 100 years, which raises questions about the...

The importance of considering optimal government policy when social norms matter for the private provision of public goods

2017
Authors :
Guy Meunier, Ingmar Schumacher

Social pressure can help overcome the free rider problem associated with public good provision. In the social norms literature concerned with the private provision of public goods there seems to be an implicit belief that it is best to have all agents adhere to the ‘good’ social norm. We challenge this view and study...

Defining the Abatement Cost in Presence of Learning-by-doing: Application to the Fuel Cell Electric Vehicle.

2017
Authors :
Anna Créti, Alena Kotelnikova, Guy Meunier, Jean-Pierre Ponssard.

Article published in Environmental and Resource Economics – September 2017 Abstract. We consider a partial equilibrium model to study the optimal phasing out of...  

Synchronization of world economic activity

2017
Authors :
Andreas Groth, Michael Ghil.

Common dynamical properties of business cycle fluctuations are studied in a sample of more than 100 countries that represent economic regions from all around the world.

The Impact of Randomness on the Distribution of Wealth: Some Economic Aspects of the Wright-Fisher Diffusion Process

2017
Authors :
Nicolas Bouleau, Christophe Chorro

Article published in Physica A: Statistical Mechanics and its Applications (August 2017). Abstract. In this paper we consider some elementary and fair zero-sum games...  

Does environmental regulation create merger incentives?

2017
Authors :
Anna Creti, María-Eugenia Sanin

Published in Energy Policy June 2017. This paper studies merger incentives for polluting Cournot firms under a competitive tradable emission permits market.