Publications

2017
Aghion P, Farhi E, Kharroubi E. On the Interaction Between Monetary Policy, Corporate Balance Sheets and Structural Reforms. 2017. PDF
Aghion P, Akcigit U, Lequien M, Stantcheva S. Tax Simplicity and Heterogeneous Learning. 2017. PDF
Aghion P, Bergeaud A, Lequien M, Melitz M. The Impact of Exports on Innovation: Theory and Evidence. 2017. PDF
Aghion P, Akcigit U, Lequien M, Stantcheva S. Do Entrepreneurship and Self-Employment Respond to Simpler Fiscal Incentives? Evidence from France. 2017. PDF
2016
Aghion P, Bloom N, Lucking B, Sadun R, Van Reenen J. Turbulence, Firm Decentralization and Growth in Bad Times. 2016. PDF
Aghion P, Akcigit U, Bergeaud A, Blundell R, Hemous D. Innovation and Top Income Inequality. 2016. PDF
2013
Aghion P, Akcigit U, Howitt P. What Do We Learn From Schumpeterian Growth Theory?. 2013. PDF
2012
Aghion P, Akcigit U, Fernandez-Villaverde J. Optimal Capital versus Labor Taxation with Innovation-Led Growth. 2012. PDF
Aghion P, Fudenberg D, Holden R, Kunimoto T, Tercieux O. Subgame Perfect Implementation Under Information Perturbations. 2012. PDF
Aghion P, Farhi E, Kharroubi E. Monetary Policy, Liquidity, and Growth. 2012. PDF
Aghion P, Dewatripont M, Du L, Harrison A, Legros P. Industrial Policy and Competition. 2012. PDF
2010
Acemoglu D, Aghion P, Bursztyn L, Hemous D. The Environment and Directed Technical Change. 2010.Abstract

This paper introduces endogenous and directed technical change in a growth model with environ- mental constraints. A unique Önal good is produced by combining inputs from two sectors. One of these sectors uses ìdirtyîmachines and thus creates environmental degradation. Research can be directed to improving the technology of machines in either sector. We characterize dynamic tax policies that achieve sustainable growth or maximize intertemporal welfare. We show that: (i) in the case where the inputs are sufficiently substitutable, sustainable long-run growth can be achieved with temporary taxation of dirty innovation and production; (ii) optimal policy involves both "carbon taxes" and re- search subsidies, so that excessive use of carbon taxes is avoided; (iii) delay in intervention is costly: the sooner and the stronger is the policy response, the shorter is the slow growth transition phase; (iv) the use of an exhaustible resource in dirty input production helps the switch to clean innovation under laissez-faire when the two inputs are substitutes. Under reasonable parameter values and with sufficient substitutability between inputs, it is optimal to redirect technical change towards clean technologies immediately and optimal environmental regulation need not reduce long-run growth.

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Aghion P, Dechezlepretre A, Hemous D, Martin R, Reenen J. Carbon Taxes, Path Dependency and Directed Technical Change : Evidence from the Auto Industry. 2010. PDF
Aghion P, Fudenberg D, Holden R, Kunimoto T, Tercieux O. Subgame-Perfect Implementation Under Value Perturbations. 2010.Abstract

We consider the robustness of extensive form mechanisms when common knowledge of the state of Nature is relaxed to common p-beliefs about it. We show that with even an arbitrarily small amount of such uncertainty, the Moore-Repullo mechanism does not yield (even approximately) truthful revelation and in addition there are sequential equilibria with undesirable outcomes. More generally, we show that any extensive form mechanism is fragile in the sense that if a non-monotonic social objective can be implemented with this mechanism, then there are arbitrarily small common p-belief value perturbations under which an undesirable sequential equilibrium exists.

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