Coauthor
  • HEAD Keith (24)
  • MARTIN Philippe (17)
  • THOENIG Mathias (12)
  • MAYNERIS Florian (10)
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  • Article (39)
  • Working paper (25)
  • Book (7)
  • Doctoral (Phd) thesis (5)
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Publication date 2008
COMBES Pierre-Philippe
THISSE Jacques-François
MAYER Thierry
11
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in American Economic Review Publication date 2014-05
HEAD Keith
THOENIG Mathias
3
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0
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Quantifications of gains from trade in heterogeneous firm models assume that productivity is Pareto distributed. Replacing this assumption with log-normal heterogeneity retains some useful Pareto features, while providing a substantially better fit to sales distributions-especially in the left tail. The cost of log-normal is that gains from trade depend on the method of calibrating the fixed cost and productivity distribution parameters. When set to match the size distribution of firm sales in a given market, the log-normal assumption delivers gains from trade in a symmetric two-country model that can be twice as large as under the Pareto assumption.

Publication date 2014-02
HEAD Keith
THOENIG Mathias
2
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2
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This paper investigates the consequences of replacing the assumption of Pareto heterogeneity with log-normal heterogeneity. This case is interesting because it (a) maintains some desirable analytic features of Pareto, (b) ts the complete distribution of rm sales rather than just approximating the right tail, and (c) can be generated under equally plausible processes (see online appendix). The log-normal is reasonably tractable but its use sacrices some \scale-free" properties conveyed by the Pareto distribution. Aspects of the the calibration that do not matter under Pareto lead to important dierences in the gains from trade under log-normal.

in American Economic Review Publication date 2014-02
MELITZ Marc J.
OTTAVIANO Gianmarco
6
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6
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We build a theoretical model of multi-product firms that highlights how competition across market destinations affects both a firm's exported product range and product mix. We show how tougher competition in an export market induces a firm to skew its export sales toward its best performing products. We find very strong confirmation of this competitive effect for French exporters across export market destinations. Theoretically, this within-firm change in product mix driven by the trading environment has important repercussions on firm productivity. A calibrated fit to our theoretical model reveals that these productivity effects are potentially quite large.

in Journal of Transnational Management Development Publication date 1998
MUCCHIELLI Jean-Louis
MAYER Thierry
0
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We address the question of competition within the location choices of firms. In a framework of agglomeration effects, both spatial and temporal dimensions of the firms' decisions are studied. We show that the competition consequences of preemptive move and optimal time of entry can interfere with the geographical decisions. Our results contrast with those of agglomeration economics models which generally provide extreme results of mono-location. The equilibria described here tend to demonstrate that the relation between competition strength and spatial differentiation remains pertinent in a context of agglomeration economies. A conditional logit empirical study analyses the geographical choice of Japanese firms in Europe. Agglomeration variables, public policies and labour market determinants are tested, highlighting the existence of temporal and spatial proximity in the behaviour of firms. The competition conditions experienced by firms of each specific sector also appear to be important in the location decision of Japanese investors.

in European Journal of Political Economy Publication date 2007-12
DISDIER Anne-Célia
MAYER Thierry
3
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3
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This paper studies the relationship between bilateral trade patterns and opinions. It uses the Eurobarometer public opinion surveys published by the European Commission, which provide data on the share of the population in each EU15 member country in favour of each CEEC joining the EU. Our results first suggest that bilateral opinions have a statistically robust and relatively large effect on imports, even when standard and new covariates capturing proximity between countries are controlled for. We interpret this effect as reflecting a positive impact of “bilateral affinity” on trade patterns. We also show that it is possible to go some way towards explaining the variance in bilateral opinions among our sample. Last we provide some preliminary attempt to determine causality between bilateral opinions and imports.

Publication date 2008-04
MAYER Thierry
2
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This paper provides evidence on the long-term impact of market potential on economic development. It derives from the New Economic Geography literature a structural estimation where the level of factors' income of a country is related to its export capacity, labelled Market Access (MA) by Redding and Venables (2004), or Real Market Potential (RMP) by Head and Mayer (2004). The empirical part evaluates this market potential for all countries in the world with available trade data over the 1960-2003 period and relates it to income per capita. Overall results show that market potential is a powerful driver of increases in income per capita.

in Regional science and urban economics Publication date 2004
CROZET Matthieu
MAYER Thierry
MUCCHIELLI Jean-Louis
0
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This paper studies the determinants of location choice by foreign investors in France using a sample of almost 4000 foreign investments over 10 years and 92 locations. Concerning agglomeration effects, we find very strong evidence of positive spillovers between firms, and identify detailed patterns of clustering, assessing, for instance, the countries of origin and the industries for which those spillovers are the most substantial. Concerning regional policies, we find very little evidence of any positive impact. Finally, we identify a ‘learning process’ of FDI, the location decisions becoming more remote from the country of origin during the period we study.

in Review of World Economics Publication date 2018-08
MALGOUYRES Clément
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We investigate the role that labor costs hold in exporters’ performance. To do so, we exploit a large-scale French reform that granted most firms a tax credit proportional to the wagebill of their employees paid below a given threshold. This policy effectively translated into a cut in labor cost whose magnitude varies depending on firm-specific wage structures. We use the predicted treatment intensity based on pre-reform composition of the labor force as an instrument for the actual policy-induced firm-level change in labor costs. Although our point estimates are consistent with commonly estimated firm-level trade elasticities combined with reasonable labor shares in total costs, coefficients are found to be very noisy, suggesting lack of robust evidence of a causal effect of the policy. We discuss several potential explanations for our results as well as their implications.

This paper estimates the role of country/variety comparative advantage in the decision to offshore assembly of more than 2000 models of 197 car brands headquartered in 23 countries. While offshoring in the car industry has risen from 2000 to 2016, the top five offshoring brands account for half the car assembly relocated to low wage countries. We show that the decision to offshore a particular car model depends on two types of cost (dis)advantage of the home country relative to foreign locations. The first type, the assembly costs common to all models, is estimated via a structural triadic gravity equation. The second effect, model-level comparative advantage, is an interaction between proxies for the model's skill and capital intensity and headquarter country's abundance in these factors.

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