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Hélène Ollivier, professeur PSE

Séminaire

On October 15, 2020

Estimating the Effects of Incomplete Regulation when Treated and Control Firms Compete

en viso

Ce jeudi 15 octobre 2020 à 14 heures, nous avons le plaisir d’accueillir, virtuellement, Hélène Ollivier, professeur à l'école d'économie de Paris pour la présentation du papier intitule : Estimating the Effects of Incomplete Regulation when Treated and Control Firms Compete.

Abstract:
A central pursuit of empirical economic research is to quantify the effects of shocks to production. The vast majority of work rests identification on the stable unit treatment value assumption (SUTVA), which states that treatment of one unit does not affect the outcomes of any other units. But of course, if treated firms compete with control firms on the output market, then SUTVA is almost surely violated. Some work explicitly accounts for spillover effects by controlling for density of treatment within some relevant neighborhood. Using a theoretical framework, we identify under what conditions atheoretical and reduced-form approaches deliver unbiased estimates of average treatment on the treated effects. We apply our method to French manufacturers under the EU ETS regulation. We find that this regulation tended to increase sales of regulated firms. The results are consistent with the Porter hypothesis: regulation induced cost-saving investments which both lowered emission intensity and increased sales.

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Date

On October 15, 2020
Complément date

14h

Localisation

Complément lieu

Visio

Submitted on October 9, 2023

Updated on October 9, 2023