Stéphane Riou

• Professor (Full) at Jean Monnet University

This paper explores how globalization influences the decision of governments to rescue inefficient domestic firms when bailouts affect firms' markups. We develop a model of international trade where immobile domestic enterprises (DOEs) compete with foreign enterprises (FOEs) in an oligopolistic market. The decision to bail out DOEs leads to lower c...

This paper explores how globalization in ‡uences the decision of governments to rescue ine¢ cient domestic …rms when bailouts a¤ect …rms'markups. We develop a model of international trade where immobile domestic enterprises (DOEs) compete with foreign enterprises (FOEs) in an oligopolistic market. The decision to bail out DOEs leads to lower corpor...

The paper investigates whether the tertiarization and rapid urbanization faced by developing countries favour agglomeration economies. Focusing on Ecuadorian cantons, a productivity equation is estimated using the generalized method of moments model with instruments controlling for endogeneity. The varying impact of industrial concentration, divers...

We study how administrative boundaries and tax competition among asymmetric jurisdictions interact with the labor and land markets to determine the economic structure and performance of metropolitan areas. Contrary to general belief, cross-border commuting need not be welfare-decreasing in the presence of agglomeration economies that vary with the...

This paper investigates the ability of a fully harmonized carbon tax to curb carbon emissions in a globalized economy characterized by an uneven spatial distribution of heterogeneous firms. The level of the carbon tax matters for the direction of the relocation and its impact on global emissions. When the carbon tax is low enough, emissions are red...

We study how administrative boundaries and tax competition among asymmetric jurisdictions interact with the labor and land markets to determine the economic structure and performance of metropolitan areas. Contrary to general belief, political fragmentation and cross-border commuting need not be welfare-decreasing. Tax competition implies that the...

Ce projet de recherche part du constat que la littérature existante sur la durabilité des espaces périurbains n'a pas apporté de réponse sur deux points particuliers. En premier lieu, la question du transport est généralement considérée du seul point de vue du transport de personnes, dans une optique d'équilibre partiel dans laquelle le transport d...

Ce projet de recherche part du constat que la littérature existante sur la durabilité des espaces périurbains n'a pas apporté de réponse sur deux points particuliers. En premier lieu, la question du transport est généralement considérée du seul point de vue du transport de personnes, dans une optique d'équilibre partiel dans laquelle le transport d...

This paper explores how trade integration in‡uences the decision by national governments to bailout manufacturing …rms. We develop a 2-country model of generalized oligopoly with heterogenous …rms and trade costs. High-cost …rms are eligible for a bailout while low-cost …rms are pro…table. Our results show that trade liberalization in‡uences both p...

We study how political boundaries and fiscal competition interact with the labor and land markets to determine the economic structure and performance of metropolitan areas. Contrary to general belief, institutional fragmentation need not be welfare-decreasing, and commuting from the suburbs to the central city is not wasteful. Thus, the institution...

We analyze the impact and the determinants of a global carbon tax maximizing social welfare in an imperfectly integrated economy. Using a model of trade and location with two countries with different population size, we first show that agglomeration of firms in the larger country raises total CO 2 emissions. Nevertheless, the introduction of a glob...

Abstract We analyze the impact of labour market rigidities on tax competition between two imperfectly integrated countries. Following a shift from a competitive to a unionized labour market in both countries, the capital tax can be adjusted upward in the country with the less rigid labour market, whereas the capital tax is always adjusted downward...

There is a wide consensus among international institutions and national governments in favor of compact (i.e. densely populated) cities as a way to improve the ecological performance of the transport system. Indeed, when both the intercity and intra-urban distributions of activities are given, a higher population density makes cities more environme...

Global carbon tax, home market effect and firm mobility We analyze the impact and the determinants of a global carbon tax maximizing social welfare in an imperfectly integrated economy. Using a model of trade and location with two countries with different population size, we first show that agglomeration of firms in the larger country raises total...

We study the impact of public good spillovers on tax competition between two imperfectly integrated countries with different levels of productivity. We show that international public good spillovers, by reducing the tax gap between countries, strengthen the agglomeration of firms in the most productive country. Then we carry on a welfare analysis....

We investigate the impact of trade liberalization upon the taxation of capital within a context of labor market rigidities. Using a model of trade and location, we show that labor market imperfections not only strengthen tax competition but also affect the relationship between trade integration and tax policies. Capital taxation follows a J-shaped...

.There is a large consensus among international institutions and national governments to favor urban-containment policies –the compact city– as a way to improve the ecological performance of the urban system. This approach overlooks a fundamental fact: what matters for the ecological outcome of cities is the mix between the level of population dens...

We build a model of trade and location with two countries which differ with respect to their level of productivity. Public spending has two possible allocations: a direct subsidy to immobile households or a wage subsidy to mobile firms. We show that firms receive a lower net of tax subsidy in the high-productivity country than in the low-productivi...

This paper starts by showing that labor market rigidities lower corporate tax rates from OCDE data. We then show that this relationship can be rationalized in a model of tax competition with imperfect competition and trade costs. The rigidity in each national labor market emerges from either an exogenously …xed wage or an union monopoly. We also sh...

Although economic historians consider technical change to be a significant factor explaining the evolution of the spatial organization of an economy, economic geography still fails to address this important issue. By developing a simple two-region general equilibrium model under monopolistic competition, we show that agglomeration is triggered by t...

Although economic historians consider technical change to be a significant factor explaining the evolution of the spatial organization of an economy, economic geography still fails to address this important issue. By developing a simple two-region general equilibrium model under monopolistic competition, we show that agglomeration is triggered by t...

We introduce a minimum wage policy into a model of tax competition with imperfect competition and imperfect trade integration. We adopt a game-theoretic approach where governments choose non-cooperatively in the …rst stage the labour market regime (perfect competition or regulation through minimum wage) and in a second stage their tax policy. In a...

Trade integration and the increasing mobility of firms have raised the need for international coordination in corporate tax. In this paper, we study the ability of fiscal equalization to avoid the misallocation of capital across asymmetric countries arising from tax competition. Such a reform respects the principle according to which the tax decisi...

On considère que la proximité géographique est nécessaire, voire essentielle, à l'innovation et à la diffusion des connaissances. Mais est-ce certain ? Est-il réellement nécessaire d'être proches pour innover?

We analyze the eciency of the pattern of public spending when two asymmetric economies are not perfectly integrated and the private sector is imperfectly competitive. We show that the low productivity country set higher net-of-tax subsidies for firms. Moreover, the eects of trade integration are not symmetric on the composition of public spending....

Impact of positive public good spillovers on international capital tax competition in a spatial economy with two countries imperfectly integrated and with different levels of productivity.

This paper analyzes the relation between tax competition and interregional transfer in an economic geography framework. In the absence of a transfer scheme, we show that a purely decentralized tax system in an economy with asymmetric regions can lead to more agglomeration effects than those resulting from the free market location equilibrium. Moreo...

Relation between economic integration and the pattern of public spending

This paper estimates the effects of knowledge spillovers on patent growth rates across 335 European regions over the 1989-1999 period. We propose a dynamic model based on an innovation production function. A Bayesian approach is used to take into account area-specific innovation and spatial spillovers. The estimation of the model proceeds via Marko...

We analyze horizontal and vertical externalities in a federal sys-tem where different levels of government are linked by upward revenue sharing arrangements and where private sector is characterized by im-perfect competition and trade costs. When the degree of regional integration is low enough, the upward revenue sharing may lead to efficient loca...

This paper is an extension of the new economic geography and growth model of Martin (1999) which proposes an interesting framework to analyze the effects of the european regional policy. We introduce imperfect interregional knowledge spillovers in this framework which are diffused by two infrastructures : transport and telecommunication infrastruct...

L'expérience européenne de la convergence fait apparaître que le rattrapage de certains pays périphériques s'opère par un creusement de leurs disparités régionales (Espagne et Portugal). Globalement, la concentration spatiale des activités économiques semble être bénéfique à leur croissance. Tout se passe donc comme s'il existait une certaine tensi...

Article révisé pour la Revue Française d'Economie Résumé L'expérience européenne de la convergence fait apparaître que le rattrapage de certains pays périphériques s'opère par un creusement de leurs disparités régionales (Espagne et Portugal). Globalement, la concentration spatiale des activités économiques semble être bénéfique à leur croissance....