This article presents a simple Monte Carlo (MC) procedure to improve sensitivity analysis in Computable general equilibrium (CGE) modelling. MC experiments provide the modeller with a population of randomly drawn exogenous parameters and corresponding endogenous outcomes. Standard econometrics...

The distance puzzle has been wildly discussed in the literature since Leamer and Levinsohn (1995) shed the light on it. This puzzle simply says that “the world is not getting smaller”: distance still matters to account for trade. This is reflected in a decreasing distance of...

NGDP targeting is presented by some macroeconomists as a good practice for central banks. But what should be the target value? I propose a relevant measure: the Non Increasing Unemployment Rate Of Nominal Growth (NIURONG). I use NIURONG to show how difficult would have been for European Central...

This paper studies optimal climate policy in the presence of oil rents. Several authors have found that, according to Hotelling's rule, in the long run, the optimal ad valorem tax must decrease. However, if the pollution is a stock and if environmental concerns impose stopping the resource...

In this paper, I study the strategic interactions between a country that owns a monopoly on a polluting non renewable resource (basically, the OPEC), and a representative of countries that both consume the resource and are hurt by its pollution. Both pollution control and rent captation are at...

In this paper, we studied the problem of international coordination in climate policy using three state-variables (oil marginal extraction cost, pollution and knowledge), two asymmetric countries and a differential game. We used a Monte Carlo procedure to obtain an insight into the behaviour of...

Since 1960, transport costs have been falling, but international exchange did not become less sensitive to distance. We propose the following explanation for this puzzle: in a Dixit-Stiglitz framework, a decrease in transport cost favors trade, which may increase the international specialization...

This paper proposes a new way to model the cost of climate change, based on a vintage capital modeling. Climate change destroys capital, according to the difference between the current climate and the climate that prevailed when a given durable was built. This assumption is meant to account for...

A l'aide d'un modele neo-classique dans lequel des pays heterogenes (a la fois par leurs dotations initiales en capital et par leurs niveaux de productivite du travail) echangent du capital sur des marches mondiaux parfaits, cet article analyse comment l'integration influence la convergence des...