Unsustainable timber harvesting, deforestation and the role of certification

Deforestation is a major environmental issue, while demand for timber products increases rapidly in the developing world. One can thus wonder whether forest harvesting is sustainable worldwide, or if demand for timber products is fulfilled with the products from deforestation. Our panel data analysis shows that countries where timber harvesting is more important tend to experience larger deforestation rates than others, giving the intuition that forest harvesting is generally not sustainable. We also show that timber certification is negatively related to deforestation and thus seems to be a good indicator of harvesting sustainability.     

MMC techniques for limited dependent variables models: Implementation by the branch-and-bound algorithm

We propose a finite sample approach to some of the most common limited dependent variables models. The method rests on the maximized Monte Carlo (MMC) test technique proposed by Dufour [1998. Monte Carlo tests with nuisance parameters: a general approach to finite-sample inference and nonstandard asymptotics. Journal of Econometrics, this issue]. We provide a general way for implementing tests and confidence regions. We show that the decision rule associated with a MMC test may be written as a Mixed Integer Programming problem. The branch-and-bound algorithm yields a global maximum in finite time. An appropriate choice of the statistic yields a consistent test, while fulfilling the level constraint for any sample size. The technique is illustrated with numerical data for the logit model.     

Defining viable recovery paths toward sustainable fisheries

This paper develops a formal analysis of the recovery process for a fishery, from crisis situations to desired levels of sustainable exploitation, using the theoretical framework of viable control. We define sustainability as a combination of biological, economic and social constraints which need to be met for a viable fishery to exist. Biological constraints are based on the definition of a minimum resource stock to be preserved. Economic constraints relate to the existence of a guaranteed profit per vessel. Social constraints refer to the maintenance of a minimum size of the fleet, and to the maximum speed at which fleet adjustment can take place. Using fleet size adjustment and fishing effort per vessel as control variables, we first identify the states of this bioeconomic system for which sustainable exploitation is possible, i.e. for which all constraints can be dynamically met. Such favorable states are called viable states. We then examine possible transition phases, from non-viable to viable states. We characterize recovery paths with respect to the time of crisis of the trajectory, which is the number of periods during which the constraints are not respected. The approach is applied to the single stock of the bay of Biscay Nephrops fishery. The transition path identified through the viability approach is compared to the historical recovery process, and to both open-access and optimal harvesting scenarios.     

Modeling Starting Point Bias as Unobserved Heterogeneity in Contingent Valuation Surveys: An Application to Air Pollution

Up to now, the starting point bias has generally been considered to be a homogeneous phenomenon. In this article, we treat anchoring as an unobserved heterogeneous phenomenon. Our contribution is twofold. First, we show analytically and by way of simulations that assuming homogeneous anchoring can be hazardous and lead to misspecifications. Second, we propose an econometric model that starts with a dichotomous question and then uses an open-ended question. We finally apply our model to a contingent valuation survey on air quality. Our results suggest that how anchoring is modeled in empirical studies deserves more attention.     

INFORMATIONAL CASCADES ELICIT PRIVATE INFORMATION*

We introduce cheap talk in a dynamic investment model with information externalities. We first show how social learning adversely affects the credibility of cheap talk messages. Next, we show how an informational cascade makes truth‐telling incentive compatible. A separating equilibrium only exists for high‐surplus projects. Both an investment subsidy and an investment tax can increase welfare. The more precise the sender's information, the higher her incentives to truthfully reveal her private information.     

What do we know about Macroeconomics that Fisher and Wicksell did not?

The answer to the question in the title is: A lot. In this essay, I argue that the history of macroeconomics during the 20th century can be divided into three epochs:Pre-1940. A period of exploration, where macroeconomics was not macroeconomics yet, but monetary theory on one side, business cycle theory on the other. A period during which all the right ingredients, and quite a few more, were developed. But also a period where confusion reigned, because of the lack of an integrated framework.From 1940 to 1980. A period of consolidation. A period during which an integrated framework was developed – starting with the IS-LM, all the way to dynamic general equilibrium models – and used to clarify the role of shocks and propagation mechanisms in fluctuations. But a construction with an Achille's heel, namely too casual a treatment of imperfections, leading to a crisis in the late 1970s.Since 1980. A new period of exploration, focused on the role of imperfections in macroeconomics, from the relevance of nominal price setting, to incompleteness of markets, to asymmetric information, to search and bargaining in decentralized markets. Exploration often feels like confusion. But behind it may be one of the most productive periods of research in macroeconomics.     

Georges Perrin and the GP cost calculation method: the story of a failure

After the Second World War, a number of costing methods were developed in France in response to the perceived limitations of Rimailho's 'homogeneous sections' method. The common feature of all these methods was the provision of a more thorough analysis of operations through the adoption of techniques which were simple to use. The GP method, developed by Georges Perrin, was the most successful but, despite its many advantages, its success was limited, due to deficiencies in Perrin's communication policy and his network of contacts.     

Harmonizing External Quotas in an FTA: A Step Backward?

This paper explores how political–economy forces shape quantitative barriers against the rest of the world in an FTA. We show that whereas the dilution of lobbying power in an FTA typically leads to a relaxation of external quotas, this result is likely to be overturned as integration deepens. In particular, we show that cooperation among member countries on the level of their external quotas, cross–border lobbying by import–competing interests in the free–trade area, and the consolidation of national external quotas into a single one, all lead to stiffer restrictions against imports from the rest of the world. We also show that, unlike tariffs, endogenous quotas are not crucially affected by the presence of rules of origin.     

LES ENTREPRISES PUBLIQUES DANS LE PROCESSUS DE TRANSITION EN EUROPE DEL' EST

RÉSUMÉ ** : Les entreprises publiques sont le fil conducteur de cet article. Elles sont to& d'abord envisagées sous l'angle de la disparition soit pour cause d'incapacitéà poursuivre leur activité, soit pow cause de privatisation. Ensuite elles sont étudiées dans une perspective constructive en constatant d'abord la vaste étendue du secteur public, puis en soulignant la nécessité d'une modernisation de leur gestion. Enfin nous avons dégagé diffe'rents arguments pour que 1'Etat adopte une conception active de sa participation au processus de transition et tracé deux pistes de réflexion: la cre'ation de holdings publics et le développement de la mixitééconomique.