WorldCat Identities

Philippon, Thomas

Works: 38 works in 240 publications in 2 languages and 1,260 library holdings
Genres: History 
Roles: Author
Classifications: HB1, 330.122
Publication Timeline
Most widely held works by Thomas Philippon
Le capitalisme d'héritiers : la crise française du travail by Thomas Philippon( Book )

4 editions published in 2007 in French and held by 111 WorldCat member libraries worldwide

The quality of labor relations and unemployment by Olivier Blanchard( Book )

11 editions published in 2004 in English and held by 41 WorldCat member libraries worldwide

In countries where wages are primarily set by collective bargaining, the effects on unemployment of changes in the economic environment depend crucially on the speed of learning of unions. This speed of learning is likely to depend in turn on the quality of the dialogue that unions have with firms, on what can more generally be called the quality of labor relations. In this paper, we examine the role this quality of labor relations has played in the evolution of unemployment across European countries over the last 30 years. We conclude that it has played an important role: Countries with worse labor relations have experienced higher unemployment. This conclusion remains even after controlling for labor institutions. Keywords: Unemployment, labor relations, unions, strikes, Europe JEL Classifications: E24, J5, J64
Fiscal policy and the term structure of interest rates by Qiang Dai( Book )

10 editions published in 2005 in English and held by 34 WorldCat member libraries worldwide

Macroeconomists want to understand the effects of fiscal policy on interest rates, while financial economists look for the factors that drive the dynamics of the yield curve. To shed light on both issues, we present an empirical macro-finance model that combines a no-arbitrage affine term structure model with a set of structural restrictions that allow us to identify fiscal policy shocks, and trace the effects of these shocks on the prices of bonds of different maturities. Compared to a standard VAR, this approach has the advantage of incorporating the information embedded in a large cross-section of bond prices. Moreover, the pricing equations provide new ways to assess the model's ability to capture risk preferences and expectations. Our results suggest that (i) government deficits affect long term interest rates: a one percentage point increase in the deficit to GDP ratio, lasting for 3 years, will eventually increase the 10-year rate by 40--50 basis points; (ii) this increase is partly due to higher expected spot rates, and partly due to higher risk premia on long term bonds; and (iii) the fiscal policy shocks account for up to 12% of the variance of forecast errors in bond yields
The economics of fraudulent accounting by Simi Kedia( Book )

10 editions published in 2005 in English and held by 33 WorldCat member libraries worldwide

"We argue that earnings management and fraudulent accounting have important economic consequences. In a model where the costs of earnings management are endogenous, we show that in equilibrium, bad managers hire and invest too much in order to pool with the good managers. This behavior distorts the allocation of economic resources among firms. We test the predictions of the model using new historical and firm-level data. First, we show that periods of high stock market valuations are systematically followed by large increases in reported frauds. We then show that during periods of suspicious accounting, firms hire and invest excessively, while insiders exercise options and sell stocks. When the misreporting is detected, firms shed labor and capital and productivity improves. In the aggregate, our model seems able to account for periods of jobless and investment-less growth"--National Bureau of Economic Research web site
Family fims, paternalism, and labor relations by Holger Mller( Book )

14 editions published in 2006 in English and held by 30 WorldCat member libraries worldwide

Using firm-, industry-, and country-level data, we document a link between family ownership and labor relations. Across countries, we find that family ownership is relatively more prevalent in countries in which labor relations are difficult, consistent with firm-level evidence suggesting that family firms are particularly effective at coping with difficult labor relations. Our cross-country results are robust to controlling for minority shareholder protection and various other potential determinants of family ownership. Our results also hold if we use strike data from the 1960s to predict cross-country variation in family ownership thirty years later. We address causality in two ways. First, we instrument our measure of the quality of labor relations using 'Labor Origin', a variable describing the extent to which the emerging European liberal states in the 18th and 19th centuries confronted guilds and labor organizations. Second, making use of within-country variation at the industry level, we show that - controlling for industry and country fixed effects - industries that are more labor dependent have relatively more family ownership in countries with worse labor relations
The rise in firm-level volatility : causes and consequences by Diego Comin( Book )

10 editions published in 2005 in English and held by 29 WorldCat member libraries worldwide

We document that the recent decline in aggregate volatility has been accompanied by a large increase in firm level risk. The negative relationship between firm and aggregate risk seems to be present across industries in the US, and across OECD countries. Firm volatility increases after deregulation. Firm volatility is linked to research and development spending as well as access to external financing. Further, R&D intensity is also associated with lower correlation of sectoral growth with the rest of the economy
The risk-adjusted cost of financial distress by Heitor Almeida( Book )

9 editions published in 2005 in English and held by 27 WorldCat member libraries worldwide

In this paper we argue that risk-adjustment matters for the valuation of financial distress costs, since financial distress is more likely to happen in bad times. Systematic distress risk implies that the riskadjusted probability of financial distress is larger than the historical probability. Alternatively, the correct valuation of distress costs should use a discount rate that is lower than the risk free rate. We derive a formula for the valuation of distress costs, and propose two strategies to implement it. The first strategy uses corporate bond spreads to derive risk-adjusted probabilities of financial distress. The second strategy estimates the risk adjustment directly from historical data on distress probabilities, using several established asset pricing models. In both cases, we find that exposure to systematic risk increases the NPV of financial distress costs. In addition, the magnitude of the riskadjustment can be very large, suggesting that a valuation of distress costs that ignores systematic risk significantly underestimates their true present value. Finally, we show that marginal distress costs computed using our new formula can be large enough to balance the marginal tax benefits of debt derived by Graham (2000), and we conclude that systematic distress risk can help explain why firms appear rather conservative in their use of debt
Efficient recapitalization by Thomas Philippon( Book )

12 editions published in 2009 in English and Undetermined and held by 25 WorldCat member libraries worldwide

We analyze public interventions to alleviate debt overhang among private firms when the government has limited information and limited resources. We first compare the efficiency of buying equity, buying risky assets, and providing debt guarantees. With compulsory participation, all the interventions are equivalent. With endogenous participation, buying equity dominates the two other interventions. We extend our results to deposit insurance, debt covenants, and heterogeneity across assets. Finally, we propose a constrained-efficient mechanism where the government makes a subordinated loan in exchange for call options on equity
The y-theory of investment by Thomas Philippon( Book )

8 editions published in 2006 in English and held by 21 WorldCat member libraries worldwide

I propose a new implementation of the q-theory of investment using corporate bond yields instead of equity prices. In q-theory, the optimal investment rate is a function of risk-adjusted discount rates and of future marginal profitability. Corporate bond prices also depend on these variables. I show that, when aggregate shocks are small, aggregate q is a linear combination of risk free rates and average yields on risky corporate debt. The yield-theory of investment, unlike its equity-based counter part, is empirically successful: it can account for more than half of the volatility of investment in post-war US data, it drives out cash flows from the investment equation, and it delivers sensible estimates for the parameters of the adjustment cost function
Monetary independence in emerging markets : does the exchange rate regime make a difference? by Eduardo Borensztein( Book )

7 editions published in 2001 in English and held by 20 WorldCat member libraries worldwide

This paper compares the impact of shocks to U.S. interest rates and emerging market bond spreads on domestic interest rates and exchange rates across several emerging market economies with different exchange rate regimes. Consistent with conventional priors, the results indicate that interest rates in Hong Kong react much more to U.S. interest rate shocks and shocks to international risk premia than interest rates in Singapore. The results are less clearcut in the comparison of Argentina and Mexico: While interest rates (and the exchange rate) in Mexico seem to react less to U.S. interest rate shocks, they react about the same to bond spread shocks, in addition to a significant impact on the exchange rate
Wages and human capital in the U.S. financial industry : 1909-2006 by Thomas Philippon( Book )

17 editions published in 2009 in English and held by 19 WorldCat member libraries worldwide

We use detailed information about wages, education and occupations to shed light on the evolution of the U.S. financial sector over the past century. We uncover a set of new, interrelated stylized facts: financial jobs were relatively skill intensive, complex, and highly paid until the 1930s and after the 1980s, but not in the interim period. We investigate the determinants of this evolution and find that financial deregulation and corporate activities linked to IPOs and credit risk increase the demand for skills in financial jobs. Computers and information technology play a more limited role. Our analysis also shows that wages in finance were excessively high around 1930 and from the mid 1990s until 2006. For the recent period we estimate that rents accounted for 30% to 50% of the wage differential between the financial sector and the rest of the private sector
Financiers vs. engineers : should the financial sector be taxed or subsidized? by Thomas Philippon( Book )

8 editions published in 2007 in English and held by 18 WorldCat member libraries worldwide

I study the allocation of human capital in an economy with production externalities, financial constraints and career choices. Agents choose to become entrepreneurs, workers or financiers. Entrepreneurship has positive externalities, but innovators face borrowing constraints and require the services of financiers in order to invest efficiently. When investment and education subsidies are chosen optimally, I find that the financial sector should be taxed in exactly the same way as the non-financial sector. When direct subsidies to investment and scientific education are not feasible, giving a preferred tax treatment to the financial sector can improve welfare by increasing aggregate investment in research and development
Optimal interventions in markets with adverse selection by Thomas Philippon( Book )

10 editions published between 2010 and 2011 in English and held by 18 WorldCat member libraries worldwide

We study interventions to restore efficient lending and investment when financial markets fail because of adverse selection. We solve a design problem where the decision to participate in a program offered by the government can be a signal for private information. We characterize optimal mechanisms and analyze specific programs often used during banking crises. We show that programs attracting all banks dominate those attracting only troubled banks, and that simple guarantees for new debt issuances implement the optimal mechanism, while equity injections and asset buyback do not. We also discuss the consequences of moral hazard
Skill biased financial development : education, wages and occupations in the U.S. financial sector by Thomas Philippon( Book )

8 editions published in 2007 in English and held by 16 WorldCat member libraries worldwide

Over the past 60 years, the U.S. financial sector has grown from 2.3% to 7.7% of GDP. While the growth in the share of value added has been fairly linear, it hides a dramatic change in the composition of skills and occupations. In the early 1980s, the financial sector started paying higher wages and hiring more skilled individuals than the rest of economy. These trends reflect a shift away from low-skill jobs and towards market-oriented activities within the sector. Our evidence suggests that technological and financial innovations both played a role in this transformation. We also document an increase in relative wages, controlling for education, which partly reflects an increase in unemployment risk: Finance jobs used to be safer than other jobs in the private sector, but this is not longer the case
Informational rents, macroeconomic rents and efficient bailouts by Thomas Philippon( Book )

11 editions published in 2011 in English and held by 16 WorldCat member libraries worldwide

We analyze government interventions to alleviate debt overhang among banks. Interventions generate two types of rents. Informational rents arise from opportunistic participation based on private information while macroeconomic rents arise from free riding. Minimizing informational rents is a security design problem and we show that warrants and preferred stocks are the optimal instruments. Minimizing macroeconomic rents requires the government to condition implementation on sufficient participation. Informational rents always impose a cost, but if macroeconomic rents are large, efficient recapitalizations can be profitable
The equilibrium size of the financial sector by Thomas Philippon( Book )

6 editions published in 2007 in English and held by 14 WorldCat member libraries worldwide

Over the past 60 years, the value added of the U.S. financial sector has grown from 2.3% to 7.7% of GDP. I present a model of the equilibrium size of this industry and I study the factors that might explain its evolution. According to the model, a shift in the joint distribution of cash flows and investment opportunities across U.S. firms has increased the demand for financial services. Improvements in the relative efficiency of the finance industry also play a role. Without these improvements, a much larger fraction of firms would be financially constrained today
Real options in a dynamic agency model, with applications to financial development, IPOs, and business risk by Thomas Philippon( Book )

8 editions published in 2007 in English and held by 14 WorldCat member libraries worldwide

We study investment options in a dynamic agency model. Moral hazard creates an option to wait and agency conflicts affect the timing of investment. The model sheds light, theoretically and quantitatively, on the evolution of firms' dynamics, in particular the decline of the failure rate and the decrease in the age of IPOs
Has the U.S. Finance Industry Become Less Efficient? On the Theory and Measurement of Financial Intermediation by Thomas Philippon( Book )

7 editions published between 2012 and 2014 in English and held by 8 WorldCat member libraries worldwide

I provide a quantitative interpretation of financial intermediation in the U.S. over the past 130 years. Measuring separately the cost of intermediation and the production of financial services, I find that: (i) the quantity of intermediation varies a lot over time; (ii) intermediation is produced under constant returns to scale; (iii) the annual cost of intermediation is around 2% of outstanding assets; (iv) adjustments for borrowers' quality are quantitatively important; and (v) the unit cost of intermediation has increased over the past 30 years -- National Bureau of Economic Research web site
Household leverage and the recession by Thomas Philippon( Book )

8 editions published in 2011 in English and held by 5 WorldCat member libraries worldwide

A salient feature of the recent U.S. recession is that output and employment have declined more in regions (states, counties) where household leverage had increased more during the credit boom. This pattern is difficult to explain with standard models of financing frictions. We propose a theory that can account for these cross-sectional facts. We study a cash-in-advance economy in which home equity borrowing, alongside public money, is used to conduct transactions. A decline in home equity borrowing tightens the cash-in-advance constraint, thus triggering a recession. We show that the evidence on house prices, leverage and employment across US regions identifies the key parameters of the model. Models estimated with cross-sectional evidence display high sensitivity of real activity to nominal credit shocks. Since home equity borrowing and public money are, in the model, perfect substitutes, our counter-factual experiments suggest that monetary policy actions have significantly reduced the severity of the recent recession
Competing on Speed by Thomas Philippon( Book )

3 editions published in 2011 in English and held by 1 WorldCat member library worldwide

Two forces have reshaped global securities markets in the last decade: Exchanges operate at much faster speeds and the trading landscape has become more fragmented. In order to analyze the positive and normative implications of these evolutions, we study a framework that captures (i) exchanges' incentives to invest in faster trading technologies and (ii) investors' trading and participation decisions. Our model predicts that regulation that protect prices will lead to fragmentation and faster trading speed. Asset prices decrease when there is intermediation competition and are further depressed by price protection. Endogenizing speed can also change the slope of asset demand curves. On normative side, we find that for a given number of exchanges, faster trading is in general socially desirable. Similarly, for a given trading speed, competition among exchange increases participation and welfare. However, when speed is endogenous, competition between exchanges is not necessarily desirable. In particular, speed can be inefficiently high. Our model sheds light on important features of the experience of European and U.S. markets since the implementation of Reg. NMS, and provides some guidance for optimal regulations
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Audience level: 0.77 (from 0.71 for Skill bias ... to 0.87 for Le capital ...)

Alternative Names
Philippon, T.

Thomas Philippon fransk ekonom

Thomas Philippon fransk konom

Thomas Philippon French economist

English (176)

French (4)