Laurène Bocognano*, Anna Belianska**

Séminaires internes
phd seminar

Laurène Bocognano*, Anna Belianska**

AMSE
Explaining French results in PISA studies: the educational demand-side approach*
Fiscal policy uncertainty and investment**
Co-écrit avec
Bruno Decreuse*
Céline Poilly**
Lieu

IBD Salle 16

Îlot Bernard du Bois - Salle 16

AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille

Date(s)
Mercredi 9 mai 2018| 12:30 - 14:00
Contact(s)

Edward Levavasseur : edward.levavasseur[at]univ-amu.fr
Océane Piétri : oceane.pietri[at]univ-amu.fr
Morgan Raux : morgan.raux[at]univ-amu.fr

Résumé

*This paper aims to show that the educational system is not the only explanation for French students' bad results in PISA studies. While a lot of reforms of education have been provided, no improvement in French skills is observed in the successive waves of PISA. Moreover, inequality increases and the social background is a huge determinant of the score. We use an unemployment search model with endogenous education to show how returns on the labor market shape motivation at school and thus leads to different scores for different students. In this model, individuals choose both duration of education and intensity of effort. We show that with the same educational system, a situation where the labor market offers more returns lead to increase both duration and intensity of education, particularly for those coming from a low social background.

**This paper assesses the interaction between policy uncertainty about governement spending and investment in a context of financial frictions. The financial accelerator model `a la Bernanke et al. (1999) is enriched with a portfolio structure composed of two imperfectly substitutable assets – long-term sovereign bonds and capital. A policy uncertainty shock is captured by a variation on the time-varying government spending volatility. Our model helps to understand the link between sovereign spread and investment when fiscal uncertainty is high. Preliminary results suggest that financial market frictions and portfolio choice amplify the aggregate contractionary effect of a fiscal uncertainty shock. These results are mainly driven by the severity of credit market imperfections and portfolio adjustment costs.