At the end of the Second World War, Pierre Mend & egrave;s France, then Minister of the Economy, supported a monetary reform intended to address the considerable increase in the money supply during the war. The plan consisted of eliminating part of the money supply through a compulsory exchange of all banknotes. This radical measure, aimed at combating inflation, sparked a controversy with Ren & eacute; Pleven, Minister of Finance. This controversy provides a fruitful framework for examining the monetary thinking of French economists, who took stances on the proposed reform. In this article, we show that the Mend & egrave;s France-Pleven debate can be analyzed through the lens of an original theory developed by Albert Aftalion: the income theory, conceived as an alternative to the quantity theory of money. We demonstrate that this theory was widely employed by French economists, but that divergent interpretations of Aftalion's writings led them to disagree over the relevance of the Mend & egrave;s France plan.
Based on the notion of temporal inconsistency (Kydland and Prescott [1977]), this article introduces the notion of temporal decoherence. Our objective is to show that this concept can be applied to merger control. In particular, we show that the choice of delegating competition policy does not resolve the tension between flexibility and credibility. Indeed, the credibility of the institution is accompanied by a risk of inadequacy between its means and the evolution of business practices. In the case of European Union merger control, this situation can then call into question its efficiency in areas or sectors that have caused this decoherence.
This paper analyses the macroeconomic and distributional effects of income transfers in the four historical French overseas departments (Guadeloupe, Martinique, French Guiana, R & eacute;union) and mainland France, using multipliers derived from Social Accounting Matrices disaggregated by income quintile. Our results show that transfers targeting the poorest households (Q1) are the most macroeconomically effective in stimulating local production, owing to their high propensity to consume and lower propensity to import. However, the analysis of the inter-household multiplier matrix reveals powerful "trickle-up" effect: the consumption of the poorest households, by stimulating the productive apparatus, generates capital income and high wages that are mechanically captured by the wealthiest households (Q5). In some overseas departments, a & euro;1 transfer to the poorest quintile ultimately generates more than & euro;1 in additional income for the richest quintile. This paradox stems from the extreme concentration of primary income at the top of the distribution, inherited from the economic history of these territories. These findings highlight the limitations of cash transfer policies conducted in isolation and call for structural reforms aimed at a more equitable distribution of value added.
Is it possible to reconcile morality and rational behavior in economics? One interesting approach is to postulate that individuals are endowed with "axiological" rationality and not just "instrumental" rationality. The purpose of this article is to identify the main models in contemporary economic literature that seek to answer this delicate question in the affirmative by referring explicitly or implicitly to this concept. The article divides this literature into two sections: one covers models that treat morality as a normative concern (normative economics perspective), while the other covers models that treat morality as a social fact (positive economics perspective). The strengths and weaknesses of these alternative models are evaluated in the light of their respective ambitions.
This article examines Alexander Bogdanov's contribution to organizational thought and economic planning through his presentation at a Moscow conference in 1921. Bogdanov, author of Tektology, advocates for a general science of organization aimed at systematizing humanity's accumulated organizational knowledge. He argues that organization is universal and that its absence leads to social disintegration. In the text translated here for the first time into French, Bogdanov sets out the fundamental principles for scientific economic planning: (1) a logic of interlinked production branches involving multidirectional interdependencies; (2) a principle of proportionality ensuring balance among sectors; (3) the law of the minimum, whereby overall growth depends on the weakest link; and (4) the outline of a matrix-based calculation to determine optimal proportions. These ideas anticipate the input-output matrices later developed by Leontief. While direct influence seems unlikely, Bogdanov's concepts circulated in Soviet literature and informed methodological debates familiar to Leontief. Finally, Bogdanov's approach in this text is noteworthy for opening perspectives on contemporary ecological planning, aimed at stabilizing the economy-nature metabolism.
A manuscript by Charles Richard de Butre relating to his Four-Column Tableau Economique is presented and explained. It contains two Four-Column Tableaux, which provide a more complete picture of the economy than that of Fran & ccedil;ois Quesnay. This more complete analysis takes into account the expenditures of the sterile class on the purchase of industrial products. In the first Four-Column Tableau, the wages of the sterile class cost the other two classes 100%, while in the second they cost 200%. For Butre, the sterile sector has a greater or lesser impact on the productive sector. The Four-Column Tableau then allows for a detailed analysis of the impact of indirect taxes on the economy and an assessment of the effects of their abolition. Comparisons are made with the treatment of indirect taxes by Quesnay and Turgot. Butre's fiscal analysis appears superior to that of the two previous authors.
This study analyzes the tariff ratio between the public and private hospital sectors in France and its evolution from 2009 to 2022. Within a regulatory framework in which hospital stays are fully bundled in the public sector but remunerated through a mixed system in the private sector (bundled payment plus fee-for-service via the CCAM), the study examines how public authorities arbitrate between these two financing models. An analysis of tariff data reveals remarkable stability in the sectoral ratio, with private-sector bundled payments accounting for an average of 50% of those in the public sector. This stability holds across all types of care (medical, surgical, obstetric, and outpatient). When considering the composition of hospital activity and the degree of specialization of institutions, the tariff ratio does vary, albeit slightly: the lower the level of sectoral differentiation, the more pronounced the stability. These findings suggest that this difference should be viewed as an institutionalized equilibrium in hospital financing.
This article analyzes the effect of economic diplomacy on the allocation of official development assistance (ODA) from G7 countries to African countries. Using a gravity model over the period 2005-2019, the results show that economic diplomacy increases the volume of development aid received by an average of 50.3%. When accounting for specific instruments of economic diplomacy, embassies are found to have stronger effects than consulates. In addition, diplomatic representations with a specific focus attract more development aid than those with multiple focuses. The results are robust to aid typology, sample distribution by geographical region of the beneficiary countries and income level, alternative estimators, and the individual consideration of G7 countries (donors). Based on these findings, African countries should further expand their diplomatic networks, particularly embassies in G7 countries, in order to attract a larger share of ODA, which is necessary to achieve their development objectives.
In response to the economic shock caused by the health crisis, many businesses adopted digital tools. This article examines whether high-quality connectivity and advanced use of digital technologies strengthened the economic resilience of French businesses during the crisis. The analysis draws on the monthly Acemo-Covid survey (Dares), which provides data on the economic situation of businesses from March 2020 to December 2021. This survey is combined with data on optical fiber availability at business locations (Arcep) and the TIC-Entreprises Survey (Insee) on digital usage. Using an exact matching approach, the analysis demonstrates that digitalization enhanced businesses' ability to overcome the economic difficulties of the health crisis. While the overall effect is positive, it is particularly pronounced for newly established businesses. The study also highlights how digitalization supported businesses by mitigating the impact of demand shocks and facilitating the management of health-related constraints.
We define mission creep as implying two different sort of processes. In the first ones, the central bank intervenes in fields it does not statutorily have to be present in. The second sort of processes diverts the central bank's policies from its statutory missions. We review how central banks missions, especially those of the European Central Bank (ECB) and the Federal Reserve System (Fed), have evolved since the Global Financial Crisis (GFC) and conclude that the reality of mission creep so far appears limited.
This article examines the selection processes for Sciences Po students in the ENA external entrance examination. Using an original database, we show that the proportion of women decreases at each stage: they are underrepresented in the preparatory year relative to their share in the Sciences Po student body; among preparatory students, they are less likely than men to register for the ENA exam; they face higher elimination rates at the eligibility stage and are ultimately fewer among admitted candidates. This attrition effect is particularly pronounced for women from modest social backgrounds. Moreover, a performance gap emerges in the anonymous written eligibility exams: accounting for the level reached at the end of the preparatory year, women from modest social backgrounds perform worse than peers from other social categories and are less frequently deemed eligible. These findings indicate that exam anonymity alone does not guarantee equal opportunities and highlight that the lack diversity in the senior civil service can only be understood by considering the intersection of gender and social origin.
In this study, we use macro-CGE simulation and a theoretical model combined with econometric estimations to evaluate the gender-specific impact of the Russia-Ukraine war on the South African economy. We compute gender-differentiated equivalence scales to convert shared household consumption into its private equivalent to account for disparities in resource allocation. We analyse data from the National Income Dynamics Study 2017 to estimate changes in women's employment, consumption, food poverty, lower and upper poverty bounds and income distribution. Our findings are five-fold: First, women accounted for 58 percent of jobs lost. Second, men's per capita food spending fell by 0.81 percent while that of women by 1 percent. Third, more rural women were affected than rural men. Fourth, Coloured and Black African women were the most affected in terms of food poverty. Finally, inequality among rural women increased more than among rural men, while inequality in urban areas decreased for both genders.
This article analyses the impact of women's representation in national parliaments on fiscal transparency in developing countries. Using a panel of 80 countries over the period 2006-2019, fiscal transparency is measured by the Open Budget Index, an indicator developed by the International Budget Partnership. The empirical results, which are robust to various econometric specifications, show that the representation of women in national parliaments has a positive and significant effect on fiscal transparency. The findings remain consistent after multiple robustness checks, including the addition of additional control variables, the use of an alternative measure of women's political participation, and the implementation of a natural experience. These results support the idea that political diversity, particularly greater representation of women, could improve fiscal transparency. The study thus highlights the importance of policies promoting women's inclusion in decision-making bodies as a lever for improving public governance in developing countries.
Should society feed surfers or should assistance be conditioned to reasonable efforts to contribute? Basic income has been justified by numerous writers from the right to an equal share of external resources. However, Rawls famously argued that surfers should feed themselves. In Why Surfers Should be Fed, Van Parijs gives a sophisticated justification for the reciprocity objection. This article argues that the right to an equal share of external resources cannot refer to abusus (the right to cede) and should refer to the right to exploit (usus) rather than the right to the proceeds (fructus). Consequently, the right to an unconditional basic income does not necessarily derive from the common ownership of external resources. Also, in some sense, a market economy that follows Justice as Fairness principles as defined by Rawls can be defended from an equality of usus perspective.
This paper deduces conditions under which populism successfully emerges in democratic contexts. Building on Downs's economic theory of democracy, it hinges on three assumptions: uncertainty, rationality, and democratic stability. This theory considers three main types of agents: citizens, political parties, and information providers. We demonstrate that the necessary and sufficient conditions for a populist party to emerge and gain significant electoral support are 1) a political disequilibrium between demand (citizens' preferences) and supply (parties' platforms) combined with 2) democratic instability due to ideological polarization. Such conditions provide the rationale behind populist anti-elitism and its thin nature as an ideology. Since this paper provides a theoretical account of populism that, while sharing Downsian roots, differs from main political economy models of populism, we provide a systematic comparison. In particular, we show that the conditions under which the Median Voter Theorem is relevant are at odds with the conditions required to account for populism.
Arms exports are a key instrument for French foreign and defense policies, and they have gradually become a strategic support for the national defense industry. This "culture of exports" enables France to maintain its position as the second-largest arms exporter globally. Despite the multiple stakes involved, economic literature has overlooked the macroeconomic determinants of arms exports. The study of the French case offers an opportunity to engage with the findings from existing literature. Furthermore, it allows for a deeper analysis by considering a range of strategic, political, and economic variables. Using the annual Reports to Parliament on arms exports, an original dataset covering the period from 1991 to 2019 has been compiled. A Heckman model is employed to study the determinants of the decision to export and the volume of exports. The results show a positive impact of GDP per capita, a negative effect of distance, and a negative effect of embargoes on the decision to export. France tends to export more easily (and in greater quantities) to countries involved in conflicts, particularly interstate conflicts.
This article explores the career of American economist Robert Dorfman (1916-2002), that can be divided into three distinct phases. During the first phase (1938-1958), he made contributions to mathematical programming and statistics. The clarity of his work was particularly emphasized by his colleagues, who believed it greatly helped disseminate mathematical programming among economists in the 1950s. In the second phase (1959-1972), he contributed to water management. His work during this phase was more applied and characterized by its interdisciplinary nature. Notably, he collaborated with oceanographers, political scientists, and sanitation engineers. Again, his explanations of the economic approach to water management and the relevance of mathematical programming in this context were praised for their clarity. During the third phase (1972-1997), he moved away from the specific case of water to focus more broadly on environmental economics, especially on critiques of cost-benefit analysis. By retracing his career, this article sheds light on the links among his various contributions and the role that clarity plays in how an economist's work is received.
This study addresses the limited understanding of how oil price shocks influence unemployment dynamics across advanced economies by analyzing the relationship between oil prices and unemployment rates in G7 countries from 1991 to 2023. Using fractional integration and fractional cointegration methodologies, the study provides new evidence on the degree of persistence in unemployment in response to oil shocks. The findings reveal that the impact of these shocks differs significantly across countries: while the United Kingdom and France exhibit short-lived effects, Canada, Italy, Japan, Germany, and the United States experience more persistent impacts, underscoring the heterogeneous effectiveness of fiscal and labor market policies. Key contributions include applying long-memory econometric techniques to disentangle structural from cyclical effects and offering country-specific insights into shock absorption capacities. The novelty of the study lies in its methodological rigor and its policy relevance in guiding the design of resilient and flexible economic policies to mitigate the adverse effects of oil price volatility on employment.
Terrorism and organized crime are intertwined in increasingly complex forms of interaction. This article explores the economic and institutional mechanisms underlying the nexus between these two forms of organized violence. Drawing on contributions from security literature and the economic analysis of crime and terrorism, we propose a three-dimensional typology based on financial dependence, degree of operational integration and territorial governance capacity. We then analyze the economic mechanisms structuring these relationships, studying the incentives and strategies of the actors involved. Finally, particular attention is paid to the public policies put in place to counter this phenomenon, questioning their effectiveness and underlining the importance of a coordinated approach that integrates security measures and socio-economic policies.
Energy dependency and reindustrialization are two important concerns in today's public discourses, especially in Europe. This is actually nothing new. This paper examines the difficulties faced by 19th century Spain in achieving industrial development through the prism of access to coal and draws lessons from them. It shows that expanding the use of coal was seen as a key element to catch up with the industrializing European countries at a time when Spain was in relative economic decline. It highlights that Spanish economists wished to vastly increase the supply and consumption of coal, but that their policy recommendations differed. These divergences depended on their different perceptions of Spain's energy autonomy and on their position within the free-trade versus protectionism debate. The paper draws parallels with today's energy transition, in particular related to dependency on foreign fuel, as well as the commercial and industrial policies.
