Happy holidays and best wishes for 2017 !

Upcoming in January

Banque de France  / SciencesPo RESEARCH SEMINAR

Wednesday 11 January

Banque de France/Sciences Po Research Seminar - January 11th

The next Banque de France/Sciences Po Research Seminar "Banks and the Financial System: what regulation?" of the academic year 2016-17 will host Thomas PHILIPPON (Professor of Finance at NYU and ACPR) on the theme:

Resolution, stress tests, bail in: how good is the new toolkit of financial regulators?

Banque de France / Sciences Po Research Seminars discuss issues on banking, financial systems and financial regulation. The objective is to confront the approaches and ideas of academics and practitioners.

When? Wednesday, January 11th - 5 to 7 PM
Where? EXCEPTIONALLY at the Banque de France, 31 rue Croix des Petits Champs, 75001

If you would like to attend, please contact Pilar Calvo-Alvarez by email.

Seminars are organized by Vivien Levy-Garboua (BNP Paribas), Robert Ophèle (Banque de France), Guillaume Plantin (Professor of Sciences Po).

NB The next Banque de France / SciencesPo Seminars will take place:
- February 22nd, with Benoît MOJON (Chief Economist at the Banque de France) on secular stagnation

ACADEMIC and RESEARCH News

Publications in peer-reviewed journals

Quoc ANH DO to publish article in the American Economic Journal: Applied Economics

Quoc-Anh DO, Associate Professor of Economics at the Department and LIEPP has co-authored with Kieu-Trang NGUYEN and Anh N. TRAN:

One Mandarin Benefits the Whole Clan: Hometown  Favoritism in an Authoritarian Regime (PDF)

Abstract:
We study patronage politics in authoritarian Vietnam, using an exhaustive panel of ranking officials from 2000 to 2010 to estimate  their promotions’ impact on infrastructure in their hometowns of patrilineal ancestry. Native officials’ promotions lead to a broad  range of hometown infrastructure improvement. Hometown favoritism is pervasive across all ranks, even among officials without budget authority, except among elected legislators. Favors are narrowly targeted towards small communes that have no political power, and are strengthened with bad local governance and strong local family values. The evidence suggests a likely motive of social preferences for hometown.

More about Quoc-Anh DO and his research

Eduardo PEREZ-RICHET to publish article in Econometrica

Eduardo PEREZ-RICHET, Professor of Economics at the Department and LIEPP has co-authored with Renaud BOURLÈS and Yann BRAMOULLÉ a paper to be published in Econometrica:

Altruism in Networks (PDF)

Abstract:
We provide the first analysis of altruism in networks. Agents are embedded in a fixed network and care about the well-being of their network neighbors. Depending on incomes, they may provide financial support to their poorer friends. We study the Nash equilibria of the resulting game of transfers. We show that equilibria maximize a concave potential function. We establish existence, uniqueness of equilibrium consumption and generic uniqueness of equilibrium transfers. We characterize the geometry of the network of transfers and highlight the key role played by transfer intermediaries. We then study comparative statics. A positive income shock to an individual benefits all. For small changes in incomes, agents in a component of the network of transfers act as if they were organized in an income-pooling community. A decrease in income inequality or expansion of the altruistic network may increase consumption inequality.

More about Eduardo PEREZ-RICHET and his research

Awards

Tyler ABBOT is finalist for the SIAM Conference Paper Prize

Tyler ABBOT - a SciencesPo PhD student - was distinguished by the Society for Industrial and Applied Mathematics (SIAM), Financial Mathematics and Engineering for his paper:

Heterogeneous Risk Preferences in Financial Markets (PDF)

SIAM announced the winners at its annual Conference on Financial Mathematics & Engineering (link).

ABSTRACT :
This paper builds a continuous time model of N heterogeneous agents, whose CRRA preferences di er in their level of risk aversion and considers the Mean Field Game (MFG) in the limit as N becomes large. The model represents a natural extension of other work on heterogeneous risk preferences (e.g. Cvitanic et al. (2011)) to a continuum of types. I add to the previous literature by characterizing the limit in N and by studying the short run dynamics of the distribution of asset holdings. I find that agents dynamically, self select into one of three groups depending on their preferences: leveraged investors, diversified investors, and saving divestors, driven by a wedge between the market price of risk and the risk free rate. The solution is characterized by dependence on individual holdings of the risky asset, which in the limit converge to a stochastic ow of measures. In this way, the mean field is not dependent on the state, but on the control, making the model unique in the literature on MFG and providing a convenient approach for simulation. I simulate by path monte-carlo both the nite types and continuous types economies and find that both models match qualitative features of real world financial markets. However, the continuous types economy is more robust to the definition of the support of the distribution of preferences and computationally less costly than the nite types economy.

More about Tyler ABBOT and his research

INSTITUTIONAL Career Relays

The Collège Universitaire (Campus de Dijon) is calling for applications for 1 (or more) Maître de conférences

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SciencesPo Kuwait Program: Call for Projects 2017

SciencesPo in partnership with the Kuwait Foundation for Advanced Studies have launched their 2017 call for innovative projects.

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A selection of job and internship offers by the department's partners

Internships - ECB - European Banking Supervision - Micro Prudential Supervision II

Sciences Po's Department of Economics is pleased to relay the opportunities offered by its institutional partner: the European Central Bank.

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Internship - EY

Sciences Po's Department of Economics is pleased to relay the opportunities offered by its institutional partner: EY.

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