Thierry MAYER publishes three lead articles in three major economic journals

Thierry MAYER

Thierry MAYER and his co-authors have published three articles in the prestigious journals: Journal of International Economics, Journal of Urban Economics and Journal of Economic Geography.

Thierry MAYER is a Professor of Economics at Sciences Po. He is also a scientific advisor at the Centre d’Études Prospéctives et d’Informations Internationales (CEPII), and a Research Fellow in the International Trade / Regional Economics programme at CEPR.

His research is primarily focused on international trade, multinational firms, economic geography, location theory and industrial organisation. His recent publications include research on the impact of globalization on armed conflicts, as well as papers looking at the diffusion of cultural patterns across space. He also published theoretical and empirical analysis of locations choices by multinational firms, studying in particular the extent and determinants of agglomeration patterns. His most frequently cited research includes empirical studies on the level and causes of market fragmentation in the European Union. His research was rewarded by a number of distinctions in France, including the bronze medal of the CNRS.

The three articles published pursue this line of research:

1/ In the Journal of International Economics, with Maria BAS and Mathias THOENIG : "From Micro to Macro:  Demand, Supply, and Heterogeneity in  the Trade Elasticity" (link to PDF)

"Models of heterogeneous firms with selection into export market participation generically exhibit aggregate trade elasticities that vary across country-pairs. Only when heterogeneity is assumed Pareto distributed do all elasticities collapse into a unique elasticity, estimable with a gravity equation. This paper provides a theory consistent methodology for quantifying country-pair specific aggregate elasticities when moving away from Pareto, i.e. when gravity does not hold. Combining two firm-level customs datasets for which we observe French and Chinese individual sales on the same destination market over the 2000–2006 period, we are able to estimate all the components of the bilateral aggregate elasticity: i) the demand-side parameter that governs the intensive margin and ii) the supply side parameters that drive the extensive margin. These components are then used to calculate theoretical predictions of bilateral aggregate elasticities over the whole set of destinations, and how those elasticities decompose into different margins. Our predictions fit well with econometric estimates, supporting our view that micro-data is a key element in the quantification of aggregate trade elasticities."

2/ In the Journal of Urban Economics, with Corentin TREVIEN: "The Impacts of Urban Public Transportation: Evidence from the Paris Region" (link to PDF)

"Evaluating the impact of transport infrastructure meets a major challenge since rail lines are not randomly located. We use the natural experiment offered by the opening and progressive extension of the Regional Express Rail (RER) between 1970 and 2000 in the Paris metropolitan region, and in particular the deviation from original plans due to budgetary constraints and technical reasons, in order to identify the causal impact of urban rail transport on firm location, employment and population growth. We use a difference-in-differences approach on a specific subsample, selected to avoid endogeneity bias which occurs when evaluating transportation effects. We find that the increase in employment is 12.8% higher in municipalities connected to the new network compared to the existing suburban rail network between 1975 and 1990. Places located within 20 km from Paris are the only affected. While we find no effect on overall population growth, our results suggest that the commissioning of the RER may have increased the competition for land high-skilled households are more likely to locate in the vicinity of a RER station."

3/ In the Journal of Economic Geography, with Florian MAYNERIS and Loriane PY : "The Impact of Urban Enterprise Zones on Establishments' Location Decisions: Evidence from French ZFUs" (link to PDF)

"In this paper, we study the impact of a French enterprise zones program – the “Zones Franches Urbaines” (ZFUs) policy – on establishments' location decisions. Our empirical analysis is based on a micro-geographic dataset which provides exhaustive information on the location of establishments in France over the period 2000-2007 at the census block level. We use a difference in difference approach combining spatial and time differencing. We also do triple difference estimations, using the fact that targeted urban areas have been selected in different waves over time. Finally, we exploit a discontinuity in the eligibility criteria of the policy as an exogenous source of variation to estimate the impact of the treatment. Our results show that the French ZFU policy has a positive and sizeable impact on location choices. However, we also find that the policy mostly generates displacement effects, in particular through relocation of firms from the untreated to the treated part within municipalities. Finally, the impact is shown to be highly heterogeneous across zones, firms and industries. The overall cost of moving establishments within municipalities is relatively high."

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