Institutional quality, conforming and evasive entrepreneurshipJournal articleJulien Hanoteau and Virginie Vial, Eurasian Business Review, Volume 10, Issue 1, pp. 97-121, 2020

In this article, we unpack Baumol’s (J Polit Econ 98(5):893–921, 1990) theory of entrepreneurship’s outcomes (productive, unproductive, and destructive) in a framework of failing institutions, considering that entrepreneurship is instead first characterized by two non-mutually exclusive types of behavior (conforming versus evasive). We hypothesize that the evasive activity (firm-level corruption) is undertaken as a second-best response to poor institutional quality, supporting the conforming activity. Using instrumental variable panel regression in the context of Indonesia, we evidence the mediating effect of bribing on the relation between local institutional quality and new business density, thus unveiling the real effect of institutional quality on entrepreneurship.

Information technologies and entrepreneurshipJournal articleJulien Hanoteau and Jean-Jacques Rosa, Managerial and Decision Economics, Volume 40, Issue 2, pp. 200-212, 2019

This article shows how the increase of information availability due to new technologies positively affects aggregate entrepreneurship in national economies. We rely on an “occupational choice” model of managerial production, extended to include the managerial use of information, to explain variations in the number of entrepreneurs, and thus of firms, as measured by the aggregate new business creation data. We present evidence that supports such a theory of industrial organization dynamics for a sample of 78 economies over the period 2004–2012 using panel data instrumental variable regressions.

Impacts of the Québec carbon emissions trading scheme on plant-level performance and employmentJournal articleJulien Hanoteau and David Talbot, Carbon Management, Volume 10, Issue 3, pp. 287-298, 2019

In 2013, Québec implemented a greenhouse gas (GHG) emissions trading system (QC ETS), despite opposition from industry, which feared loss of competitiveness and warned about job destruction. This article assesses the impact of that carbon regulation on industrial facilities in Québec. Conditional difference-in-differences ordinary least squares regressions show that regulated plants reduced their GHG emissions by about 9.8%, employment by about 6.8% and carbon intensity by about 3.7% more compared to non-regulated plants in the rest of Canada during the period 2013–2015. This suggests that facilities adapted to the new program by improving their technology, but first and foremost by scaling down their activity, which raises questions about the ability of the QC ETS to induce enough environmental investment and innovation in industrial facilities. The results, in terms of employment effects, contrast with the findings of similar studies on the early stages of the European ETS and the British Columbia carbon tax scheme, and this information challenges the initial allocation scheme for permits, in particular, with a view to a green fiscal reform.

Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ WelfareJournal articleVirginie Vial and Julien Hanoteau, World Development, Volume 74, Issue C, pp. 142-157, 2015

Presenting low individual returns, but providing households with livelihoods and means to cope with economic vulnerability, micro-entrepreneurship’s evaluation should include both context and heterogeneity. Using a four-wave panel of 9,157 Indonesian households, this study proposes a quantile estimation of micro-entrepreneurship’s effects on four household-level complementary measures of welfare – income, consumption, household, and total assets. It evidences substantial positive but decreasing effects on the four measures, with the highest relative returns for the poorest. For this category, micro-entrepreneurship primarily provides returns in the form of income, translating into higher relative consumption, but more importantly, into a greater relative assets accumulation.

Lobbying for carbon permits in EuropeJournal articleJulien Hanoteau, Recherches économiques de Louvain, Volume 80, Issue 1, pp. 61-87, 2014

Using cross-sector and cross-country data, this paper evidences that rent seeking influenced the allocation of CO 2 emission permits in the two first phases of the European emissions trading scheme. Industry lobbies effectively used the ?job loss? and ?competitiveness? arguments, as unemployment proxy variables significantly impacted the allocation in both phases, and carbon intensity influenced it in the second phase. The countries that adopted a partial auction scheme also gave relatively more permits and in particular to the politically more powerful sectors. This suggests a compensation mechanism and supports the assumption of a political tradeoff between the quantity of permits issued and the decision between free grant and auction. It also confirms that the initial allocation is not neutral in the presence of special interest lobbying. JEL Classification: D72, Q58, C10.

The Shrinking Hand: Why Information Technology Leads to Smaller FirmsJournal articleJulien Hanoteau and Jean-Jacques Rosa, International Journal of the Economics of Business, Volume 19, Issue 2, pp. 285-314, 2012

We explain the firm downsizing trend of the recent decades by the new abundance of information – the ICT revolution. Production processes differ in their information requirements: while decentralized production by means of market exchanges is information intensive, less information per unit of output is needed in the hierarchically integrated production of firms, and the information/output ratio is decreasing firm size. We formulate a quantity of information theory of the firm embodying these differences and derive a Coase–Rybczinski effect for the aggregate economy, which predicts a decreasing employment share of large firms and an increasing share of small ones when the aggregate quantity of information increases Panel data regressions and other evidence provide support for this hypothesis.

A mediterranean agreement for tuna conservation: The political benefit of an international ITQ schemeJournal articleJulien Hanoteau, Intereconomics: Review of European Economic Policy, Volume 47, Issue 1, pp. 52-60, 2012

Mediterranean bluefin tuna have been increasingly overfished since the early 1990s, but the countries involved have so far been unable to reach an agreement on an ecologically and economically more efficient use of this shared resource. A system of individual transferable quotas could foster international agreement on reducing the total allowable catches. One condition for this, however, would be that fisheries be adequately compensated for the opportunity costs of decommissioning vessels

Corruption, Manufacturing Plant Growth, and the Asian Paradox: Indonesian EvidenceJournal articleJulien Hanoteau and Virginie Vial, World Development, Volume 38, Issue 5, pp. 693-705, 2010

Summary Using panel data from the Indonesian manufacturing industry during the Suharto era (1975-95), we assess the impact of plant-level corruption on output and productivity growth. In support of the "grease the wheels" hypothesis and the view of an Asian paradox, we find that corruption, measured as bribes and indirect tax payments, has a positive and statistically significant effect on individual plant growth. This effect persists over the entire period, which suggests improvements in the efficacy of the bribe system and a strengthening of the long-term contract between firms and the government.

The silence on climate change by accounting's top journals.Journal articleJulien Hanoteau, Alistair M. Brown, Isabelle Pignatel and Bernard Paranque, International Journal of Climate Change: Impacts and Responses, Volume 1, Issue 4, pp. 81-100, 2009

The purpose of this article is to examine the contribution made to climate change issues by the elite 'top 5' international accounting journals of Accounting Organizations and Society, Contemporary Accounting Research, Journal of Accounting and Economics, Journal of Accounting Research and The Accounting Review, for the period 2000-2005. The main methodological approach used in this study is textual analysis which attempts to discern the underlying climate change discourse and ideology of these 'high quality' accounting journals' accounting articles. The contribution made by these 'top 5' accounting journals amounts to nine journal articles and three research notes. While the articles of Herbohn (2005) and Gray (2002) break the pattern of 'top 5' ritualistic capital market based climate change accounting publications, the absence of a contemporary wide-ranging number of environmental accounting research articles by these 'high quality' journals underlies the 'top 5' accounting academia's complicity in the status quo of denial about the planet's problems.

Competitiveness through political environmental strategies: The case of Michelin's green tiresJournal articleJulien Hanoteau, Global Business and Organizational Excellence, Volume 29, Issue 1, pp. 32-40, 2009

There is a debate as to whether green firms may become economically more competitive, as well. The answer appears circumstantial, depending on the abilities of these firms to implement and benefit from environmental competitive strategies such as environmental differentiation or eco-efficiency. This article discusses corporate political strategies, targeting environmental regulations, as another source of competitiveness. Based on the case of Michelin's green tires, we characterize this strategy and its conduct, and analyze the conditions for its success. We show that it was the necessary complement to the environmental differentiation strategy developed and implemented by Michelin since the early 1990s. © 2009 Wiley Periodicals, Inc.