Core Newsletter #14 by Center for Operations Research and Econometrics

NEWSLETTER 14 SPECIAL CORE@50 EDITION | SINCE 2010 August 2017 | w www.uclouvain.be/en/core | @ core-newsletter@uclouvain.be | F core.ucl

CONTENTS

CORE@50: BRIDGING GAPS

OUR JULY EDITION IS PACKED WITH INFORMATION ABOUT CORE'S LATEST ACTIVITIES, SO READ ON!

FOCUS ON THE BIGGEST EVENT OF THE YEAR 2016: WITH MORE THAN 100 PRESENTATIONS OF HIGH-SCIENTIFIC CALIBER, THE CONFERENCE WAS NOT ONE TO BE MISSED!

02 CORE@50 Conference: Bridging Gaps 06 50 Days@CORE: A year in Celebrations 12 Past Events 14 Upcoming Events 15 New People at CORE 17 New Books 18 Publications 20 We need YOU!

WE NEED YOU! SINCE THE BEGINNING OF CORE, INTERNATIONAL EXCHANGE HAS ALWAYS BEEN OUR CORE VALUE, AND WE WOULD LIKE TO CONTINUE THIS TRADITION! Read more on page 20.

Read more on page 6.

CORE Newsletter #14 — Focus: CORE@50 Conference, Bridging Gaps

Focus: CORE@50 Conference, Bridging Gaps — CORE Newsletter #14

CORE@50 CONFERENCE CORE@50 CONFERENCE

t was in 1966 that CORE was founded by Prof. Jacques Drèze in association with the Katholieke Universiteit Leuven. Over the past 50 years, CORE has become at the Université catholique de Louvain an internationally recognized, interdisciplinary research institute in the fields of economics, operations research, econometrics, and, more recently, quantitative and economic geography.

Celebratory activities during the year 2016 were grouped under the umbrella 50 DAYS@CORE . The centerpiece of the 50 th anniversary celebrations was the Bridging Gaps Conference held in Louvain-laNeuve during the whole week of May 23-27, 2016, which featured: >>

The award of UCLouvain HONORARY DOCTOR (DHC) degrees to three distinguished former CORE members: VV MARC FLEURBAEY, from Princeton University, an economist and philosopher, and a world leader on Welfare Economics; VV MICHEL GOEMANS , from the Massachusetts Institute of Technology (MIT), a leading researcher in the areas of Discrete Algorithms and Combinatorial Optimization; and VV GEORGE NEMHAUSER , from the Georgia Institute of Technology (Georgia Tech), one of the foremost scholar in Operations Research and a former CORE Research Director (in 1977-1978). Over 150 persons registered for the DHC award ceremony.

Sixteen CONTRIBUTED SCIENTIFIC SESSIONS , comprising about 50 contributed presentations on a broad range of topics in Operations Research, Economics, Econometrics, and Quantitative and Economic Geography.

A number of cultural and social events also occurred during the conference. The GALA DINNER , at the Chateau de Terblock near Brussels, was a high point of the week. In addition to the fine Belgian and other food served in appropriately decorated booths, the Gala Dinner featured a show of (mostly black and white) photos and a few shot movies spanning 50 years of life at CORE. The younger appearance, not to mention hairstyle, of now venerable CORE members drew amused comments and occasional laughter. Dinner guests also participated in a “CORE Trivia” game led by CORE’s President Philippe Chevalier acting as MC. They also cheered when contributors to the event were awarded fine (and pointedly amusing) Tintin (and Snowy, of course) statuettes in recognition of their efforts.

THE YEAR 2016 WAS AN EXCITING ONE AS CORE CELEBRATED ITS 50TH ANNIVERSARY!

The CORE@50 celebrations entailed scientific and community events spanning the entire year 2016, under the motto Bridging Gaps: bridging gaps between the first 50 years of CORE and its next 50 (and more) years; between generations; between scientific disciplines; as well as gaps within societies and economic systems, and between countries and between world regions.

From left to right: George Nemhauser, Marc Fleurbaey and Michel Goemans, during the Honororary Doctors award ceremony

VV Corporate Income Tax, organized by Jean Hindriks; VV Cycles, Growth, and Capital Accumulation, organized by Julio Dávila; VV Cooperation and Resource Sharing for Supply Chain Management, organized by Per Agrell and Philippe Chevalier; VV Information Economics and Games, organized by Claude d’Aspremont; VV Computational Challenges in Energy: Hydro-thermal Electricity Generation Planning, organized by Anthony Papavasiliou; and VV Environmental & Natural Resources Economics, organized by Thierry Bréchet and Paul Belleflamme, and chaired by Henry Tulkens.

Other cultural and social events occurred throughout the conference, in particular: >>

a breakfast meeting with former Research Directors and the DHC recipients, during which a healthy discussion was held regarding the current international standing of CORE and strategies for future development of the center; a CORE Foundation Lunch organized and sponsored by the CORE Foundation, to recognize personalities and organizations who have contributed to the development of CORE; the HONORARY DOCTORS AWARD CEREMONY itself, with all the academic regalia and a formal procession, followed by a reception as a prelude to the Gala Dinner; and finally, a farewell reception in the CORE patio, exceptionally open for the occasion.

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Over 250 persons registered for the Conference, with a similar number attending the Gala Dinner. Conference participants sent words of appreciation:

“it was certainly memorable for me as a visitor!” — Andreas Haufler, University of Munich

“Cette semaine a été riche

de rencontres et d'échanges d'idées, tout à fait dans l'esprit du CORE! ” — Marc Fleurbaey, Princeton University

“it was perfect!”

— Margherita Negri, University of St. Andrews

“Dans la grande tradition

du CORE, qui arrive à concilier l'excellence dans une atmosphère de détente amicale et chaleureuse!”

Four PLENARY LECTURES given by the three DHC recipients and a fourth distinguished speaker: VV Combinatorial Optimization: The First 50 Years and Beyond, by Michel Goemans; VV Double Machine Learning for Causal and Treatment Effects, by Victor Chenozukov, from MIT, a renowned scholar in the field of Econometrics; VV Whither Social Choice?, by Marc Fleurbaey; and VV Integer Programming: The Global Impact, by George Nemhauser; Nine invited CORE SCIENTIFIC SESSIONS on current and emerging research directions, organized by CORE academic members and featuring established and rising international experts. The list below, in chronological order of presentation, gives an idea of the breadth of research interests at CORE: VV Social Networks: Theories & Methods, organized by Isabelle Thomas and Jean-Charles Delvenne; VV Optimal Taxation, organized by François Maniquet and Jean Hindriks; VV Integer Nonlinear Optimization, organized by by Mathieu Van Vyve and Maurice Queyranne, and chaired by John Lee (University of Michigan);

CORE Foundation Lunch

— Bernard Cornet, Université Paris 1 Panthéon-Sorbonne

The Gala Dinner of the Bridging Gaps: CORE@50 conference was held at Château de la Poste, near Brussels. With more than 200 participants, the evening was a real success.

Gala Dinner

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THANK YOU

Participants to the Bridging Gaps: CORE@50 Conference's Gala Dinner May 26, 2016 - ChĂ˘teau de la Poste, Overijse

CORE Newsletter #14 — 50 Days@CORE: A Year in Celebrations

50 Days@CORE: A Year in Celebrations — CORE Newsletter #14

50 DAYS @ CORE

NOBELTALK:LARSPETERHANSEN CORE NOBEL TALK WITH LARS PETER HANSEN ON CONFRONTING UNCERTAINTY LOUVAIN-LA-NEUVE, FEBRUARY 10, 2016

A YEAR IN CELEBRATIONS

rof. Lars Peter Hansen is an internationally known leader in economic dynamics who works at the boundary of economics and statistics. His recent work focuses on UNCERTAINTY and its relationship to long run risks in the macroeconomy. He explores how models that incorporate ambiguities, beliefs, and skepticism of consumers and investors can explain economic and financial data and reveal the long-term consequences of policy options. Prof. Hansen, along with his coauthors, has recently developed methods for modeling economic decision-making in environments in which uncertainty is hard to quantify. As the 2013 NOBEL PRIZE LAUREATE IN ECONOMICS , he agreed to give the first talk in our brand new CORE Nobel Talk series.

THROWBACK TO AN EXCEPTIONAL YEAR, FULL TO THE BRIM WITH ACTIVITIES IN THE VARIOUS FIELDS OF INTEREST RESEARCHED AT CORE!

B >>

esides the Bridging Gaps Conference itself, the 50 DAYS@ CORE featured activities spanning the whole 2016 year, most notably:

Five campus-wide NOBEL AND FIELDS MEDAL TALKS : VV Confronting Uncertainty by Prof. Lars Peter Hansen, 2013 Nobel Prize Laureate in Economics; VV The Precarious Fiscal Foundations of EMU: A Reassessment after 17 Years by Prof. Christopher A. Sims, 2011 Nobel Prize Laureate in Economics; VV Moral Reasoning, Markets and Organizations by Prof. Jean Tirole, 2014 Nobel Prize Laureate in Economics; VV Why Is Global Poverty so Hard to Measure, and so Hard to Eradicate? by Prof. Angus Deaton, 2015 Nobel Prize Laureate in Economics; and VV On Mean Field Games, by Prof. Pierre-Louis Lions, 1994 Fields Medal Laureate. Two PUBLIC DEBATES : VV Fair Allocation versus Real Freedom for All Social Justice, a debate on Social Justice between Marc Fleurbaey (Princeton University, DHC UCLouvain) and Philippe Van Parijs (Hoover Chair, UCLouvain), moderated by Erik Schokkaert (KU Leuven) (31 registered participants); and VV How Can an Economist’s Work Benefit India?, a debate between Prof. Angus Deaton (Princeton University, 2015 Nobel Prize in Economics), Jean Drèze (an Indian development economist and social activist) and students (188 registered participants). Four SCIENTIFIC CONFERENCES : VV ORBEL 30, the 30 th annual conference of the Belgian Operational Research Society (127 registered participants); VV Are Our Emotions Rational?, a conference featuring Prof. Eyal Winter followed by a round table with three other experts (114 registered participants) VV The 6th joint WIC/IEEE SP Symposium on Information Theory and Signal Processing in the Benelux; and VV StochMod 2016, the biennial conference of the EURO working group on stochastic modeling (40 registered participants). Two CORE LECTURE SERIES : VV Optimal Transport And Economic Applications: Modelling and Estimation, by Prof. Alfred Galichon (New York University) (26 registered participants); and VV Uncertainty and Economic Policy: General Equilibrium, Incomplete Markets and Macroeconomics, by CORE founder Jacques Drèze (87 registered participants);

Six RESEARCH WORKSHOPS : VV The 1st Belgian-Japanese Public Finance Workshop; VV The 2nd Workshop on Industrial Organization in the Digital Economy; VV Defuse the Energy Future, a workshop on tomorrow's electricity systems; VV The 15th Belgian Financial Research Forum; VV A workshop on Poverty and Well-being, with comments from Prof. Angus Deaton (2015 Nobel Prize Laureate in Economics); and VV The BRU-Net Workshop on Big Data and Urban Geography. Four PHD COURSES : VV on Big Data and Forecasting, VV on Quantitative Finance, and VV on Identification Strategies in Business and Finance; VV and a Winter School on Networks in Economics and Finance.

All these events were well attended, received positive comments from participants, and contributed to the local and international visibility of CORE and the University. With a total of about 43 days of activities, the 50 Days@CORE events fell a little short of their ambitious 50-day objective, but the enthusiastic participation more than compensated for the few missing days. We are now looking forward to the 100 Days@CORE activities for CORE’s 100 th anniversary!

ORBEL30 CONFERENCE THE 30 NATIONAL CONFERENCE OF THE BELGIAN OPERATIONAL RESEARCH SOCIETY LOUVAIN-LA-NEUVE, JANUARY 28-29, 2016 TH

s the first event of CORE’s 50th anniversary celebrations, ORBEL 30 featured THREE PLENARY SPEAKERS : an international Health OR scientist, Prof. Eva K. Lee, the Director of the Center for Operations Research in Medicine and HealthCare, at Georgia Tech; and two of the best-known Belgian OR academics, Profs. Yurii Nesterov and Laurence Wolsey, of CORE. With more than 125 participants, ORBEL 30 offered a rich program including FOUR PLENARY SESSIONS which comprised three keynote talks and an AWARD CEREMONY; 19 PARALLEL CONTRIBUTED SESSIONS ; the annual ORBEL Board meeting and ORBEL General Assembly meeting; AND SOCIAL ACTIVITIES , including a conference cocktail and dinner, and a farewell reception. The Award Ceremony featured the 2016 ORBEL Award for the best student thesis in Operations Research, an award sponsored by OM Partners; and the 2016 ORBEL Wolsey Award for the best OR related open-source implementation, an award sponsored by N-SIDE. Additional information can be found on the ORBEL 30 conference website: http://www.orbel.be/orbel30/

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Prof. Lars Peter Hansen

Prof. Hansen's talk is available on our YOUTUBE channel: https://youtu.be/wldyEOrXMQc?list=PL2xyAie2ypso219UF0tuQbHdMtCtSB-4x

PUBLIC FINANCE WORKSHOP 1st BELGIAN-JAPANESE PUBLIC FINANCE MEETING LOUVAIN-LA-NEUVE, MARCH 4-5, 2016

ean Hindriks and Pierre Pestieau, together with Yukihiro Nishimura (Osaka University, Japan) organized the first edition of the Belgian-Japanese Public Finance Workshop at CORE on March 4-5, 2016. The objective was to BUILD A BRIDGE and to promote collaboration BETWEEN EUROPEAN AND JAPANESE ECONOMISTS , notably in the area of public economics in which CORE has a long standing reputation. A delegation of 5 professors from Osaka University attended the workshop. The topic this year was TAXATION IN A GLOBAL ECONOMY. Increased international mobility of economic activity and profits via FDI, profit shifting, tax fiscal ruling, trade, and migration has resulted in a tax environment that requires decision makers to consider their choices in a global context. In particular, the mobility of tax bases and the shifting of profits pose serious questions for the implementation of tax policy and the sustainability of public goods. These issues have been topics of discussion during the workshop.

1st Belgo-Japanese Public Finance Workshop MARCH 4-5, 2016

A 5 0 DAYS @ CO R E E V E N T

ORGANIZING COMMITTEE

Jean HINDRIKS (Université catholique de Louvain) Yukihiro NISHIMURA (Osaka University) Pierre PESTIEAU (Université de Liège)

VE N U E CORE, Voie du Roman Pays 34, 1348 Louvain-la-Neuve, Belgium

I N F O R M A TION For registration and information visit: http://www.uclouvain.be/en-527433.html

For more information, visit: https://uclouvain.be/en/research-institutes/immaq/core/ events/1st-belgo-japanese-public-finance-workshop.html

IO WORKSHOP

CEMS PHD COURSE

2 WORKSHOP ON INDUSTRIAL ORGANIZATION IN THE DIGITAL ECONOMY LOUVAIN-LA-NEUVE, MARCH 18-19, 2016

DOCTORAL WORKSHOP IN ECONOMICS BRUSSELS, APRIL 4-7, 2016

n March 18-19, 2016, Paul Belleflamme and Axel Gautier co-organized a workshop entitled Industrial Organization in the Digital Economy. This was the second edition of this workshop targeted at PhD students and young postdoctoral scholars. Besides two keynote lectures given by Marc Bourreau (Telecom ParisTech) and Alain Strowel (UCLouvain, Faculty of Law), 15 papers were presented, covering empirical and theoretical contributions related to topics like multisided platforms, big data, net neutrality, digitization of payments, internet advertising, user-generated content, digital piracy, economics of privacy, reputation and recommender systems, open source software, etc. All the participants appreciated the quality of the presentations and the fruitful interaction with the audience.

n April 4-7, 2016, CeSAM, CORE, and the National Bank of Belgium organized the CEMS PhD Course on TERM STRUCTURE MODELS AND THE ZERO LOWER BOUND by Jens Christensen (Federal Reserve Bank of San Francisco). The course covered the most recent literature on how to model the term structure of bond yields including the challenges posed by the asymmetric behavior of yields near their lower bound. The course took place at the National Bank of Belgium.

For more information, see: https://uclouvain.be/en/research-institutes/immaq/core/events/industrial-organization-in-the-digital-economy.html PAGE 7

CORE Newsletter #14 — 50 Days@CORE: A Year in Celebrations

50 Days@CORE: A Year in Celebrations — CORE Newsletter #14

OR WORKSHOP

FINANCIAL FORUM

CORE LECTURE SERIES

WORKSHOP DEFUSE THE ENERGY FUTURE LOUVAIN-LA-NEUVE, APRIL 22, 2016

BELGIAN RESEARCH FINANCIAL FORUM BRUSSELS, MAY 10, 2016

ALFRED GALICHON ON OPTIMAL TRANSPORT AND ECONOMIC APPLICATIONS: MODELLING AND ESTIMATION LOUVAIN-LA-NEUVE, JUNE 6-8, 2016

ine experts gathered in the hall Sainte-Barbe on April 22, 2016, to discuss TOMORROW'S ELECTRICITY SYSTEM , with the evening divided into three topics:

i. Tomorrow, we shave gratis (get the market ready for renewables); ii. The Super, The Micro and the Smart (what kind of electricity network do we want?); iii. Revamping the concept of energy efficiency (flexibility versus sobriety). The presentations were followed by a networking drink with slow food and Belgian beers tasting, for the greatest pleasure of the attendance.

n May 10, 2016, CeSAM and CORE co-organized the 15th edition of the Belgian Research Financial Forum. The forum is organized every other year by a different Belgian university. For the first time this RESEARCH FORUM was jointly organized by HEC-Liège, Katholieke Universiteit Leuven, Louvain School of Management, Universiteit Antwerpen, Universiteit Gent, Université libre de Bruxelles, Université de Mons, Université de Namur, Vlerick Business School, and Vrije Universiteit Brussel. More than 40 papers were presented (with discussants). The keyonte lecture was given by Prof. John Campbell (Harvard University). The forum took place at the National Bank of Belgium.

CONFERENCE ON EMOTIONS

Are Our Emotions Rational? MAY 17, 2016

A CO R E ’ S 5 0

SPEAKERS Prof. Eyal WINTER (Hebrew University of Jerusalem) Prof. Valerie ROSOUX (Université catholique de Louvain) Prof. Olivier LUMINET (Université catholique de Louvain) Prof. Arno RIEDL (Maastricht University)

VENUE SOCRATE 11 Place Cardinal Mercier, 10 1348 Louvain-la-Neuve, Belgium

I N F O R M ATIO N For registration and information visit: http://www.uclouvain.be/en-633568.html

A N N I V E R SA RY E V E N T

CONFERENCE WITH EYAL WINTER ON THE RATIONALITY OF EMOTIONS LOUVAIN-LA-NEUVE, MAY 17, 2016

he CORE Lecture Series on Optimal Transport And Economic Applications: Modelling and Estimation was given by Prof. Alfred Galichon (NYU, Economics Department and Courant Institute) in early June. The method of optimal transport yields new formations in economics and econometrics. They lie in the realm of several research areas in CORE. Alfred showed that the CONNECTION BETWEEN ECONOMICS AND OPTIMAL TRANSPORT reveals some profound results. It comprises the selected topics on matching theory, discrete choice models, and quantile estimation. The lectures brought together economists who are interested in an efficient way of modelling and estimation for compute-intensive problems and mathematicians who are committed to apply optimal transport theory to economics. The research profile of the participants was diverse. It included data science, economic theory, econometrics, operations research, partial differential equations and probability. Participants were from universities and research institutes in Belgium, France, and the USA. Given a variety of interests, Alfred covered a wide spectrum of topics, themes and issues and gave a direction to future research in economics. The lectures enhanced the understanding of usefulness of optimal transport theory with aids of several contemporary applications in economics.

yal Winter, author of the best seller of Feeling smart. Why our emotions are more rational than we think (Public Affairs, 2014), was the keynote speaker of the conference ARE OUR EMOTIONS RATIONAL?. His presentation was followed by a panel chaired by Pierre Dehez (CORE), with the participation of Olivier Luminet (UCLouvain and FNRS) on the psychology of emotions, Valérie Rosoux (UCLouvain and FNRS) on emotions in international negotiations, and Arno Riedl (Maastricht University) on neuroeconomics. Even if a large part of the audience consisted of economists, the conference and the panel were followed by people from other horizons in social and human sciences, a success.

NOBEL TALK: CHRISTOPHER A. SIMS

EYAL WINTER is specialized in the field of BEHAVIORAL ECONOMICS and GAME THEORY. He is at the Hebrew University of Jerusalem and member of the Center for the Study of Rationality. He has advised governments and corporations on behavioral economics and strategic decision-making. His book "Feeling smart" was endorsed by seven Nobel laureates. Its translation in French was released in June 2017 with the title "Libérez vos émotions. Sont-elles plus rationnelles que nous le pensons?"

In the afternoon, Professor Sims participated to a WORKSHOP ON BAYESIAN VECTOR AUTOREGRESSIONS , where he presented a paper Can credit growth be a problem? An application of panel data VARs. The other speakers of the workshop were Prof. Dimitris Korobilis, University of Glasgow, who presented his research on Bayesian Compressed Vector Autoregressions, and Prof. Roberto Casarin, University of Venice, who presented his paper Modeling Contagion and Systemic Risk.

DEBATE ON SOCIAL JUSTICE

CHRISTOPHER A. SIMS ON THE PRECARIOUS FISCAL FOUNDATIONS OF EMU: A REASSESSMENT AFTER 17 YEARS LOUVAIN-LA-NEUVE, JUNE 22, 2016

n June 22, 2016, Prof. Christopher A. Sims visited CORE. In the morning, he delivered a talk entitled The Precarious Fiscal Foundations of EMU: A Reassessment after 17 Years. The title refers to C. Sims' The Precarious Fiscal Foundations of EMU, De Economist 147, 415-436, 1999.

The talks of Prof. Sims were inspiring. His comments during the workshop helped the participants a lot. Professor Sims’ visit has been an immense privilege and honor for us. His talk is available on our YOUTUBE channel: https://youtu.be/npXMOBbH5fA

DEBATE ON FAIR ALLOCATION VS. REAL FREEDOM FOR ALL SOCIAL JUSTICE LOUVAIN-LA-NEUVE, MAY 18, 2016

n May 18, 2016, CORE hosted a debate on social justice between Marc Fleurbaey and Philippe Van Parijs. MARC FLEURBAEY is Professor of Public Affairs at the University Center for Human Values, Princeton University. He is an economist but has published a number of articles in political philosophy as well. PHILIPPE VAN PARIJS is Professor of philosophy at UCLouvain and, among many other things, has launched the Basic Income Earth Network (BIEN). The debate was moderated by Erik Schokkaert, Professor of Economics at KULeuven and head of the Metaforum. As both speakers can be described as defenders of LIBERAL EGALITARIANISM , they have much in common. The objective of the debate was then to clarify how and why they disagree. It turns out that whereas Philippe Van Parijs considers that the disposable income of those who do not work should be the index by which to measure real freedom, Marc Fleurbaey, even if he acknowledges that there are arguments for it, considers that there are many other possible metrics. There was a lively debate with the participants on the implications of these positions for the justification of a basic income. The debate gathered around 50 participants. They had been asked to read two pieces before attending the debate.

STOCHMOD16 www.stochmod.eu/StochMod16

Louvain-la-Neuve BELGIUM Come and celebrate with us 10 years of StochMod Conferences organized by the EURO Working Group on Stochastic Modeling every two years!

SAVE THE DATE

July 11-13 2016 The scope of the conference includes both theoretical papers with advances in mathematical techniques that can be useful for analyzing stochastic models as well as applications of performance analysis of telecommunication systems, the modelling of logistics and service systems, the theory of queueing and inventory models, revenue management, and so forth.

S 16

STOCH MOD 2016

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Prof. Alfred Galichon, invited as part of the CORE Lecture Series

STOCHMOD16 CONFERENCE 6TH STOCHMOD CONFERENCE ON STOCHASTIC MODELLING LOUVAIN-LA-NEUVE, JULY 11-13, 2016

rom July 10 to July 13, 2016, CORE hosted Stochmod16, the 6th edition of the bi-annual conference of the EURO workgroup on STOCHASTIC MODELING . This meeting brings together applied probabilists, operation researchers, engineers, computer scientists and statisticians with a main or side interest in stochastic modelling. The aim of the meeting is to facilitate the exchange of ideas on the LATEST ADVANCES BOTH IN THE THEORY OF STOCHASTIC PROCESSES AND QUEUEING as well as in applications in different domains such as healthcare, telecommunication systems, operations management, revenue management, and so forth. We had over 40 attendants coming mostly from different European countries but also from Turkey, Canada, USA, and even Australia. Our invited plenary speakers were Stephen Disney from Cardiff University and Chung Piaw Teo from National University of Singapore. Additional information is available at the following website: http://stochmod.eu/Meetings/ StochMod16/.

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CORE Newsletter #14 — 50 Days@CORE: A Year in Celebrations

JACQUES DRÈZE C O R E D i s t i n g u i s h e d Le c t u re S e r i e s o n

Uncertainty and Economic Policy

September 22-23, 2016 | Louvain-la-Neuve

INFORMATION & REGISTRATION

Attendance is free but registration is mandatory. Don’t forget to register on our website by September 16! More information at www.core50.be

50 Days@CORE: A Year in Celebrations — CORE Newsletter #14

CORE LECTURE SERIES

DEBATE

DISTINGUISHED LECTURE SERIES WITH JACQUES DRÈZE ON UNCERTAINTY AND ECONOMIC POLICY LOUVAIN-LA-NEUVE, SEPTEMBER 22-23, 2016

DEBATE BETWEEN ANGUS DEATON, JEAN DRÈZE AND STUDENTS ON HOW CAN AN ECONOMIST'S WORK BENEFIT INDIA? LOUVAIN-LA-NEUVE, OCTOBER 25, 2016

n September 2016, Jacques Drèze gave a series of lectures on " UNCERTAINTY AND ECONOMIC POLICY. GENERAL EQUILIBRIUM, INCOMPLETE MARKETS AND MACROECONOMICS " followed by a panel chaired by Pierre Dehez (CORE) with the participation of

Christian Gollier (Toulouse School of Economics), Martin Hellwig (Max Planck Institute for Research on Collective Goods, Bonn), and Jean-Jacques Herings (University of Maastricht). Jacques Drèze made clear the importance (and relevance) of integrating market incompleteness (as well as preference incompleteness) in general equilibrium modelling and identified remedies to the present recession, going beyond the Juncker program. It gave him the opportunity to list a number of research challenges that he hopes the younger generation will take on, with a focus on building a "dynamic stochastic equilibrium theory under incomplete markets". Additional information and links to the lectures are available online: http://core50.be/index. php/core-distinguished-lecture-series/.

n October 25, 2016, a debate took place between students and two guest speakers, Professors Angus Deaton and Jean Drèze. The former is emeritus professor at Princeton University, 2015 Nobel Prize laureate, and the latter is professor at Delhi School of Economics. He is mostly known however for his political efforts in favor of the poor in India, for instance as one of the designer of the NREGA program. The debate was organized by a team of master students in economics. The discussion focused on the specificities of India, in particular because its high GDP growth performances do not succeed in improving some of the most striking shortcomings of the Indian society in terms of, for instance, the health of the poor. The two speakers shared their views on the topic, including their evaluation of the policies that are implemented to address these problems, including foreign aid.

TUESDAY OCTOBER 25

DEBATE between Angus Deaton (Nobel Prize Laureate), Jean Drèze (Economist), and students

How can an economist’s work benefit India? 6:30 p.m. | Auditorium SUD - Attendance is free, but registration is mandatory through: http://www.uclouvain.be/en-773796.html Don’t forget to bring your ID (or member/student card) as there will be security controls upon entrance.

The debate was live tweeted through the hashtag #DEATONDREZEUCL . Pictures of the evening can be found here: https://twitter.com/hashtag/DeatonDrezeUCL?src=hash

JOINT PHD COURSE

WORKSHOP ON POVERTY PHD COURSE

JOINT PHD COURSE ON BIG-DATA IN DYNAMIC PREDICTIVE ECONOMETRIC MODELING BRUSSELS, OCTOBER 5-6, 2016

WORKSHOP ON POVERTY AND WELL-BEING LOUVAIN-LA-NEUVE, OCTOBER 26, 2016

n association with NBB and VUB, CORE and LFIN organized a new joint PhD Course on BIG-DATA IN DYNAMIC PREDICTIVE ECONOMETRIC MODELING . The keynote speaker was Francis X. Diebold, Paul F. and Warren S. Miller Professor of Social Sciences, and Professor of Economics, Finance and Statistics, at the University of Pennsylvania. For more information, visit: https://uclouvain.be/en/research-institutes/immaq/core/events/joint-ph-d-course-on-big-data-in-dynamic-predictive-econometric-modeling.html

NOBEL TALK: JEAN TIROLE CORE NOBEL TALK WITH JEAN TIROLE ON MORAL REASONING, MARKETS AND ORGANIZATIONS LOUVAIN-LA-NEUVE, OCTOBER 18, 2016

ORE had the privilege to welcome Prof. Jean Tirole (Toulouse School of Economics) in the framework of its Nobel Talk series. Jean Tirole is an internationally renowned scholar in INDUSTRIAL ORGANIZATION, game theory, banking and finance. In 2014, he was awarded the Sveriges Riksbank Nobel Prize in Economic Sciences for his analysis of market power and regulation. In his lecture, entitled “Moral Reasoning, Markets and Organizations”, Jean Tirole addressed this fundamental question: ARE MARKETS MORAL? Economists are indeed often accused of being obsessed by markets although, as many people contend, “there are things that money can’t buy”. To clarify the issue, Jean Tirole first shared his feelings and experience about how economists view the world. He then explained that this criticism of markets is partly based on some misunderstandings of what economics is about. Prof. Tirole's talk is available on our YOUTUBE channel: https://youtu.be/CLAqk2juIM4

BRUNET/ERSA WORKSHOP BRUNET & ERSA/DG REGIO WORKSHOPS ON BIG DATA AND URBAN GEOGRAPHY LOUVAIN-LA-NEUVE, NOVEMBER 21-22, 2016

Prof. Jean Tirole, 2014 Nobel Prize Laureate

NOBEL TALK: ANGUS DEATON CORE NOBEL TALK WITH ANGUS DEATON ON WHY IS POVERTY SO HARD TO MEASURE, AND SO HARD TO ERADICATE? LOUVAIN-LA-NEUVE, OCTOBER 25, 2016

rof. Angus Deaton, Princeton University, 2015 Nobel Prize laureate, gave us a talk on why global poverty is so hard to measure and so hard to eradicate. GLOBAL POVERTY refers to extreme poverty spread over the world. Measuring it is necessary if we want to know to which regions efforts should be concentrated. The difficulty to measure it comes from the low quality of the data, the low availability of it, and the fact that measuring poverty across countries require to compare the well-being of people using different currencies to buy different goods. The difficulty of eradicating poverty on the other hand is related to the difficulty to evaluate policies and to identify the role of it in the increase of well-being. PAGE 10

he workshop, which took place on October 26, 2016, in the presence of Prof. Deaton, gathered researchers essentially from Belgium and illustrated the vast range of economic research on p OVERTY AND WELL-BEING that takes place in Belgium. Some research has to do with the use of survey data to measure well-being, and the difficulties related to the attempts of building comparability on subjective data. Some other research has to do with the distribution of well-being within the household. Some other research has to do with the analysis of behavioral responses to special institutions that are built in poor countries to alleviate poverty. Eight papers were presented and formally discussed during the workshop, which gathered around seventy researchers.

n November 21-22, 2016, the members of the BRUNET research project (funded by Innoviris) jointly organized with ERSA and DG-REGIO a two-day workshop on BIG-DATA AND REGIONAL SCIENCES . The objective was to present the potentials of Big-Data in urban modelling, regional science and planning. On the first day, 6 speakers were invited to deal with complex systems in urban environment. We welcomed academic researchers and members of private and public sectors. With a melting pot of methodological, geographical and business sessions, the BRUNET workshop allowed to rise the debate on the use and application of Big Data in our daily life; the numerous discussions between the 24 participants were very constructive. The second day particularly focused on the use of Big Data in urban planning. Researchers and planners introduced their on-going projects and questions, on the limits of Big-Data and how they can be useful to deal with new facets of territorial complexity.

2ND IMMAQ PHD COURSE IN QUANTITATIVE FINANCE LOUVAIN-LA-NEUVE, NOVEMBER 7-9, 2016

or three days, IMMAQ organized its 2nd PhD Course in Quantitative Finance, this time on CREDIT RISK MODELING . Prof. David Lando (Copenhagen Business School) focused on three topics, one for each day: i. The contingent claim approach to pricing corporate debt; ii. Intensity models, Credit Default Swaps, term structure of credit spreads, money market rates; and iii. Correlated defaults, loan portfolios and CDO modeling.

WINTER SCHOOL 2ND UNAMUR/UCL WINTER SCHOOL ON NETWORKS IN ECONOMICS AND FINANCE LOUVAIN-LA-NEUVE, DECEMBER 12-15, 2016

uring the past decade, both academics and policymakers have recognised the importance of studying interconnectedness and complexity. The objective of the winter school and the associated events spreading over the full week was to assess recent progress made in the application of NETWORKS FOR MODELLING ECONOMIC AND FINANCIAL SYSTEMS with an emphasis on econometric issues. The Winter School was held at CORE from Monday to Wednesday, with lectures from Prof. B. Graham (UC Berkeley). On Thursday, BeNet 2016 (the Belgian Network Research Meeting) gathered scientists from a wide range of disciplines applying network science. The event was co-organized by CORE and Université de Namur.

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CORE Newsletter #14 — Past Scientific Events

Past Scientific Events — CORE Newsletter #14

FIELDS MEDAL TALK

NOBEL TALK: ROBERT J. AUMANN

CORE FIELDS MEDAL TALK WITH PIERRE-LOUIS LIONS ON MEAN FIELD GAMES LOUVAIN-LA-NEUVE, DECEMBER 14, 2016

CORE NOBEL TALK WITH ROBERT J. AUMANN ON RULE-RATIONALITY: A SYNTHESIS OF BEHAVIORAL AND MAINSTREAM ECONOMICS LOUVAIN-LA-NEUVE, MAY 9, 2017

n the spirit of the CORE Nobel Talk series, Prof. Pierre-Louis Lions (Collège de France), 1994 FIELDS MEDAL LAUREATE for his work on nonlinear partial differential equations, honored us by coming to CORE for a talk on MEAN FIELD GAMES . Much in the same vein as the CORE Nobel Talk series, these Fields Medal Talks are organized with the idea of being accessible to a broad audience. With more than 80 participants, the event was a success as Prof. Lions's easy approach on the subject was fully appreciated by the attendance. Prof. Pierre-Louis Lions, 1994 Fields Medal Laureate

obert J. Aumann honored us by giving a conference on "Rule-rationality: a synthesis of behavioral and mainstream economics". RULE-RATIONALITY is a paradigm according to which people do not maximize utility in each of their acts, but rather follow rules or modes of behavior that usually-but not always-maximize utility, providing a synthesis between rationalistic neo-classical economic theory and behavioral economics. With 140 registered participants, the event was a real success. Robert J. Aumann, Professor at the Hebrew University, is an internationally renowned scholar in economic theory and game theory. In 2005, he was awarded the Sveriges Riksbank Nobel Prize in Economic Sciences for his work on conflict and cooperation through game-theory analysis.

Prof. Lions's talk is available on our YOUTUBE channel: https://youtu.be/czl1a084HGQ Prof. Aumann's talk is available on our YOUTUBE channel: https://youtu.be/czl1a084HGQ

CEMS PHD COURSE 7 CEMS PHD COURSE WITH MURILLO CAMPELLO ON IDENTIFICATION STRATEGIES IN BUSINESS AND FINANCE LOUVAIN-LA-NEUVE, DECEMBER 14, 2016 TH

his thorough PhD level class covering modern empirical work was held at CORE on December 14, 2016. The course was designed to help students understand how to operationalize empirical research on topics that are central to EMPIRICAL FINANCE AND BUSINESS. The overarching goal was to expose students to “state-of-the-art” empirical research methods and prepare them to conduct their own work using new tools.

PAST SCIENTIFIC EVENTS PUBLIC FINANCE WORKSHOP 2 BELGIAN-JAPANESE WORKSHOP ON PUBLIC FINANCE LOUVAIN-LA-NEUVE, MARCH 2-3, 2017 ND

rofs. Jean Hindriks (CORE), Pierre Pestieau (CORE and UlG) and Yukihiro Nishimura (Osaka University) organized their yearly Public Finance Workshop in early March, with the purpose of promoting COLLABORATION BETWEEN BELGIAN AND JAPANESE ECONOMISTS in the field of public economics. There were 12 presentations in total, from junior and senior researchers, half of them from Japanese universities (Osaka, Tokyo and Hitotsubashi) and the remaining half from Europe (TSE, PSE, CREST, Lausanne, Norway). The full program and papers can be downloaded on: https://uclouvain.be/en/research-institutes/ immaq/core/events/2nd-belgian-japanese-public-finance-workshop.html

2017 ECORES SUMMER SCHOOL

2 0 1 7 EC

2017 ECORES SUMMER SCHOOL ON INDIVIDUAL HETEROGENEITY IN ORGANIZATIONS LOUVAIN-LA-NEUVE, MAY 30 - JUNE 1, 2017

LOUVAIN-LA-NEUVE, MAY 30-JUNE 1, 2017

he 2017 ECORES Summer School on “Individual Heterogeneity in Organizations” was held in Louvain-la-Neuve on May 30-June 1, 2017. The summer school is a major joint event organized directly by three major Belgian universities (ULB, UCLouvain, KU Leuven). This year, it was hosted by UCLouvain professors Jean Hindriks and François Maniquet. This Summer School has proposed a careful examination of various (positive and negative) aspects of HETEROGENEITY in a wide range of social organizations and economic environments. There were three prestigious keynote speakers from three fields of economics where the incorporation of heterogeneity into state-of-the-art models has revolutionized research. Each of the speakers has made seminal contributions to the research methodology, but also derived practical insights and policy recommendations.

CALL FOR PARTICIPATION

RES S U M M E R S C H O O L

Individual Heterogeneity in Organizations KEYNOTE SPEAKERS

Roland BENABOU Princeton University

Liran EINAV Stanford University

Muriel NIEDERLE Stanford University

AND POSTER PRESENTATIONS BY JUNIOR PARTICIPANTS ORGANIZING COMMITTEE Jean Hindriks, CORE, Université catholique de Louvain Georg Kirchsteiger, ECARES, Université libre de Bruxelles François Maniquet, CORE, Université catholique de Louvain Jo Van Biesebroeck, Department of Economics, KU Leuven PRACTICAL INFORMATION www.ecores.be SUBMISSION DEADLINE FOR CONTRIBUTORS March 15, 2017 CONTACT core-conferences@uclouvain.be

PROF. ROLAND BENABOU (Princeton University) has presented his most recent research (joint with jean Tirole, 2014 Nobel Prize Laureate) at the forefront of introducing heterogenous beliefs, norms and motivations in the mainstream economic analysis. This research focuses in particular on extrinsic incentives versus intrinsic motivation, on the determinants of prosocial behavior and on motivated beliefs, both individual and collective. PROF. MURIEL NIEDERLE (Stanford University) has presented her recent work in the field of experimental economics with special attention to external validity: “from the lab to the field to the policy”. She has concentrated mainly on her experimental work on gender differences in competitive environment (notably why women shy away from competition). PROF. LIRAN EINAV (Stanford University) has presented his pioneering work on the use of big data to account for heterogeneity in many different applications. He has focused on insurance markets, including the development of empirical models of insurance demand and pricing, and empirical analyses of the implications of adverse selection and moral hazard.

The Summer school was backed up by poster presentations by junior researchers. It was attended by about 90 participants coming from all over Europe. For more information, see: www.ecores.be

CEMS PHD COURSE CEMS PHD COURSE WITH MIKE WEST ON BAYESIAN DYNAMIC MODELLING FOR MULTIVARIATE TIME SERIES ANALYSIS LOUVAIN-LA-NEUVE, MAY 29 - JUNE 1, 2016

IO WORKSHOP 3RD WORKSHOP ON INDUSTRIAL ORGANIZATION IN THE DIGITAL ECONOMY LIÈGE, MARCH 10-11, 2017

O PAGE 12

n March 10-11, Profs. Johannes Johnen and Axel Gautier organized the third workshop in INDUSTRIAL ORGANIZATION IN THE DIGITAL ECONOMY. Prof. Markus Reisinger (Frankfurt School) was the keynote speaker of this edition. For more information and the detailed program, visit: www.lcii.eu/2017/02/09/industrial-organization-of-the-digital-economy-program/

his short-course covered principles and methodology of BAYESIAN DYNAMIC MODELLING , with a main focus on METHODOLOGY FOR MULTIVARIATE TIME SERIES ANALYSIS AND FORECASTING . Given by Prof. Mike West (Duke University) and following introductory conceptual and perspective development in univariate settings, the course worked through a series of contexts of multivariate dynamic modelling for multiple time series. Key model developments and examples involve analysis, inference and forecasting in financial and econometric contexts, including Bayesian decision analysis overlaying modelling and computational methodology. Several examples are drawn from these areas, while others exemplify use of this range of models in other fields. The course included recent modelling and methodological developments in multivariate time series and forecasting, and contacts current research frontiers. More information can be found on the LFIN website: https://uclouvain.be/en/research-institutes/immaq/lfin/cems-phd-courses.html PAGE 13

CORE Newsletter #14 — Upcoming Events

New: People @ CORE — CORE Newsletter #14

NEW PEOPLE @ CORE

SOFIE SUMMER SCHOOL EDEEM JAMBOREE 2017 SOFIE FINANCIAL ECONOMETRICS SCHOOL LOUVAIN-LA-NEUVE, JULY 10-12, 2017

2017 EDEEM SUMMER MEETING LOUVAIN-LA-NEUVE, JULY 10-12, 2017

he SoFiE Financial Econometrics School is an ANNUAL WEEK-LONG RESEARCH-BASED COURSES for PhD students and new faculty in financial econometrics.

In June 2017, The National Bank of Belgium hosted its Summer School focused on MODELLING THE TERM STRUCTURE OF INTEREST RATES . For more information, visit: http://sofie.stern.nyu.edu/node/531

s part of the European Doctorate in Economics, CORE hosted the 2017 Summer Meeting in July. The event is one of the mandatory activities for doctoral students participating in the EDEEM program. The idea of the Jamboree is to give students the opportunity to present their work within the EDEEM network and to encourage discussion. Another jamboree activity was a JOB MARKET PLACEMENT TRAINING SESSION . Furthermore, the annual monitoring of EDEEM doctoral students took place during the jamboree.

UPCOMING EVENTS

CORE LECTURE SERIES WITH CHRISTIANE BAUMEISTER IN FINANCE LOUVAIN-LA-NEUVE, OCTOBER 16-18, 2017

ext October, Prof. Chistiane Baumeister will give a series of lectures on "A BAYESIAN APPROACH TO IDENTIFICATION OF STRUCTURAL VAR MODELS ". Prof. Baumeister is an Associate Professor at the University of Notre Dame. Her primary research interests include the study of time-varying macroeconomic relationships with applications to the oil market and the transmission mechanism of both conventional and unconventional monetary policy using Bayesian methods. These lectures challenge the current practice of identification of structural vector autoregressions which are the workhorse models in empirical macroeconomics and finance. Drawing structural inference from VAR models requires making use of prior information. This course provides formal tools of Bayesian analysis that allow to incorporate prior beliefs about the underlying economic structure in a flexible way and to characterize the contribution of prior information. The methods introduced in the lectures will be illustrated with applications in economics and finance. For more information and registration, see: https://uclouvain.be/en/research-institutes/immaq/core/events/core-lectures-series-infinance.html.

RECENTADVANCESINECONOMETRICS

OC TOBER 1 9 - 2 0 , 2 0 1 7

INTERNATIONAL CONFERENCE IN HONOR OF LUC BAUWENS BRUSSELS, OCTOBER 19-20, 2017

For more information, visit the conference website: https://uclouvain.be/en/researchinstitutes/immaq/core/events/international-conference-in-honor-of-luc-bauwens.html

PAGE 14

OHANNES JOHNEN finished his PhD at the European School of Management and Technology in Berlin in 2016 under the supervision of Paul Heidhues, Roland Strausz, and Georg Weizsäcker. His main research fields are Behavioral Economics, Industrial Organization and Microeconomic Theory. In recent projects, he explores how firms respond in their product design to consumer mistakes, and whether competition induces firms to mitigate or to amplify these biases. He studies the implications for the design of policies on education, consumer protection, or rules on data usage to make sure that markets work despite consumer mistakes. OY (YUE) ZHANG recently received her PhD in Finance from McMaster University. She joined UCLouvain in September 2016. She has two main research interests. One is corporate finance and the other is financial management. For corporate finance, she currently studies the impact of labor unions on firm financial policies and performance. For financial management, she studies the development and impacts of financial innovations. She teaches Advanced Corporate Finance and Empirical Corporate Finance at LSM.

CORE LECTURE SERIES

t the occasion of Luc Bauwens' 65th anniversary, CORE is organizing jointly with LFIN and UNamur a conference to honor Prof. Bauwens contributions to econometrics and CORE. The conference will take place at the Hilton Brussels City on October 19-20, and will reunite Luc's former PhD students, co-authors, colleagues and friends. We aim at covering all important topics of Luc's long career, including BAYESIAN AND FINANCIAL ECONOMETRICS . Keynote speakers include Herman van Dijk, Eric Ghysels, Eric Renault, and Jean-Michel Zakoian, among other speakers of international reputation. There will be a COMBINATION OF THEORETICAL AND APPLIED CONTRIBUTIONS , and it is expected that the conference will have a positive impact on the development of young researchers in econometrics in the organizing institutions.

FACULTY MEMBERS

R E C E N T A DVA N C E S IN ECONOMETRICS INT ERNAT IONAL CO N F ER EN CE IN HONOR OF LU C BAU W EN S SP EAKERS

Eric GHYSELS

University of North Carolina, Chapel Hill

Eric RENAULT Brown University

Herman VAN DIJK Erasmus University Rotterdam

Jean-Michel ZAKOIAN CREST, ENSAE

O RGA N I Z I NG COMMI TTEE Sophie BÉREAU, UNamur and UCLouvain Pierre GIOT, Université de Namur Christian HAFNER, UCLouvain Léonardo IANIA, UCLouvain Jeroen ROMBOUTS, ESSEC Business School

VENU E Hilton Brussels City, Place Charles Rogier 20, 1210 Brussels, Belgium

POSTDOCTORAL RESEARCHERS

NDREU ARENAS JAL received his PhD in Economics from the European University Institute (Florence, Italy) in June 2016, under the supervision of Professor Andrea Ichino. He is an empirical microeconomist with research interests in political economy, economics of education, and policy evaluation. At CORE, he is currently working with Prof. Jean Hindriks on a project about School Segregation and Inter-generational Mobility. Andreu has been teaching a PhD class in Political Economics this spring term.

VINASH BHARDWAJ is a postdoctoral fellow at CORE working in Operations Research. He completed his doctoral studies in the Department of Industrial Engineering and Operations Research at the University of California Berkeley advised by Prof. Alper Atamtürk. His doctoral thesis focused primarily on studying polyhedral structure of the Binary Conic Quadratic Knapsacks and applications thereof. Prior to joining CORE, Avinash was a Postdoctoral Fellow in the H. Milton Stewart School of Industrial and Systems Engineering at Georgia Institute of Technology working with Prof. George Nemhauser and Prof. Shabbir Ahmed. His primary research interests span the areas of Conic integer programming, submodular set functions, polyhedral cutting planes for mixed-integer programming and optimization under uncertainty.

ARION COLLEWET is a post-doctoral research fellow at CORE. She obtained her PhD at ROA (Maastricht University) in January 2017. Her main research interests are labour economics, working time, endogenous preferences, the definition of well-being in economics, and the link between working time and productivity. At CORE, she is working with Prof. François Maniquet on alternative ways to elicit labour supply preferences and social norms in labour supply.

LIVIER FINANCE holds a doctorate in geography from the Université Paris I (Panthéon-Sorbonne). During his PhD, he worked in the fields of urban, economic and quantitative geography. More specifically, he investigated the transnational firms’ strategies into the French urban system, by locating the Foreign Direct Investments at the establishment level. He now takes part in the BRU-NET project as a postdoctoral fellow. He contributes to the analysis of diverse kind of human interactions into the region of Brussels and more broadly in Belgium through community detection, and builds an interactive online atlas.

ONATHAN HUGHES received his PhD in Economics from the University of Kent in England. His thesis focused on several topics in the field of open economy macroeconomics and was supervised by Miguel León-Ledesma and Keisuke Otsu. At CORE, he is working with Prof. Julio Dávila on a model of intergenerational income mobility.

lfin

LOUVAIN FINANCE

PAGE 15

CORE Newsletter #14 — New: People @ CORE

IMITRA KYRIAKOPOULOU received her PhD in Econometrics in 2011 from University of Piraeus in Greece with highest honour. Subsequently, she gained important professional experience for more than five years as an Econometrician at the Hellenic Competition Commission and the Bank of Greece. She joined CORE as a Postdoctoral Research Fellow, under the "MOVE-IN Louvain" fellowship program, and she works with Prof. Christian Hafner. Her expertise is on classical and higher-order asymptotic theory in time series econometrics, with particular emphasis on conditional heteroskedastic processes. Her research interests focus on new asymptotic results in time series econometrics under dependence, with the use of higher-order asymptotic expansions and bootstrap methods.

OBERT SOMOGYI received his PhD in Economics from Ecole Polytechnique and CREST in June 2016 under

the supervision of Francis Bloch. His research interests include microeconomic theory, industrial organization of the digital economy, and agent-based modeling. At CORE, he has started investigating issues related to net neutrality in general, and the mobile internet market in particular.

PHD STUDENTS

ILLES BERTRAND is a new PhD student at CORE. Formerly, he received his master degree in applied mathematics in the School of Engineering of UCLouvain. He works under the supervision of Prof. Anthony Papavasiliou; his research focus is on evaluating the value of power system flexibility by developing high temporal resolution models of electricity markets and power system operations.

ATHAN LASSANCE recently completed a business engineering and CEMS master’s program at the Louvain School of Management (LSM), with a specialization in asset and risk management. His master’s thesis investigated the empirical hedging performance of several option pricing models and its relation to the underlying asset real dynamics. He is now working as a FNRS research fellow with Prof. Frédéric Vrins. His research aims at applying information theory, and entropy measures in particular, to quantitative risk measurement and portfolio management.

HEIKH MBAYE received his master degree in quantitative finance from Pierre and Marie Curie University in collaboration with the Ecole Polytechnique in Paris, the former DEA El Karoui. He has a PhD scholarship from the National Bank of Belgium and his research topic is about "Conic Martingales and Credit Risk Modelling" under the supervision of Prof. Frédéric Vrins.

LYÈS MEZGHANI graduated from Ensimag (France) with a specialization in Operations Research, Combinatorics and Optimization. He worked on stochastic optimization for the management of natural gas markets during his thesis at ENGIE. Under the supervision of Prof. Anthony Papavasiliou at CORE, he will focus on the modeling and the optimization of coordinated transmission and distribution market operations in electrical power systems.

ISA PAVIA is an EDEEM PhD student writing her thesis on the taxation of multinational corporations, under

the joint supervision of Profs. Jean Hindriks at CORE and Susana Peralta at Nova SBE. She spent the first half of her PhD at Nova University in Lisbon, where she acquired access to an extensive dataset of Portuguese firms that she has been using for empirical work. Her research interests include profit shifting, regional tax competition, and governmental anti-tax evasion efforts.

RIKA PINI has recently obtained her joint master degree in Economics from Université Catholique de Louvain and Università Bocconi. Her master thesis was focused on the relationship between economic inequality and electoral abstention. She is currently a teaching assistant at the Economic School of Louvain and she is pursuing her PhD at CORE, under the supervision of Prof. François Maniquet. Her field of research is political economics, with a focus on political competition and electoral participation.

Publications: New Books — CORE Newsletter #14

ATHIEU SAUVENIER has a research master in Econometrics from Université catholique de Louvain. His master thesis studied the definition of the concept of sparsity applied to econometrics models and how this definition could be extended to a more general class of model. His research at CORE aims to pursue the direction taken by his master thesis by working in the area of high dimensional econometric models, under the supervision of Prof. Sébastien Van Belleghem. He is also a teaching assistant at the Economic School of Louvain.

ALERIO SERSE holds a BA in economics from the University of Rome ‘La Sapienza’ and a master’s degree from the Université catholique de Louvain. Currently, he is a PhD student at CORE working under the supervision of Prof. Jean Hindriks. His fields of interest are public economics and econometric models of consumer demand. In particular, he works on a FRESH-FNRS funded project aimed at evaluating the impact of taxation on junk food markets.

EAN-CHARLES WIJNANDTS is a research fellow of the “Fonds de la Recherche Scientifique” (FNRS) currently pursuing a PhD in Finance at CORE under the supervision of Eric Ghysels (UNC - Chapel Hill) and Leonardo Iania (CORE and LFIN, UCLouvain). He is affiliated with the Center for Operations Research and Econometrics (CORE) and the Louvain Finance research group. His field of research is Applied Econometrics with a focus on Macroeconometrics and Empirical Asset Pricing. He is currently involved in projects studying the transmission of monetary policy to financial markets and on the role of higher-order moments (skewness and kurtosis) in the variation of risk premiums on fixed-income markets.

AGMARA WRZESINSKA has a Master in Engineering degree in Transportation and Logistics from Denmark Technical University. At CORE she works with Isabelle Thomas and Philipppe Chevalier on exploring the relationship between supply chain managment and spatial aspects of distrubtion. Within the PREsupply project, she combines OR and geography in order to maximize performance of Walloon supply chains.

ADMINISTRATIVE STAFF

OSE NGO NGIJOL joined UCL and CORE in September 2016, after a few years in the private sector. At CORE, She is in charge of daily accounting under the responsibility of the Executive Director.

NEW BOOKS VICTOR GINSBURGH THE PALGRAVE HANDBOOK OF ECONOMICS AND LANGUAGE ED. BY VICTOR GINSBURGH AND SHLOMO WEBER, PALGRAVE MACMILLAN, 2016

o the languages people speak influence their economic decisions and social behavior in multilingual societies? This Handbook brings together scholars from various disciplines to examine the links and tensions between economics and language to find the delicate balance between monetary benefits and psychological costs of linguistic dynamics. This Handbook provides an innovative study which examines the interplay between economic decisions and social behaviour in multilingual societies. It draws on the work of leading scholars from a variety of disciplines including economists, linguists and political scientists.

PAGE 16

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CORE Newsletter #14 — Publications: Reprints

Publications: Discussions Papers — CORE Newsletter #14

PUBLICATIONS LATEST REPRINTS

2848. Gustavo Angula and Mathieu Van Vyve. Fixed-charge transportation on trees. Operations Research Letters, 45, 275-281, 2017.

LATEST DISCUSSION PAPERS

ECONOMETRIC THEORY

PUBLIC & WELFARE ECONOMICS

ECONOMETRIC THEORY

PUBLIC AND WELFARE ECONOMICS

2866. Christian M. Hafner, Sébastien Laurent and Francesco Violante. Econometric Theory, 33, 691-716, 2017. 2865. Jörg Breitung and Christian M. Hafner. A simple model for now-casting volatility series. International Journal of Forecasting, 32, 1247-1255, 2016. 2853. Manuela Braione. A time-varying long run HEAVY model. Statistics and Probability Letters, 119, 36-44, 2016.

2868. Xavier Ramos and Dirk Van de Gaer. Approaches to inequality of opportunity: principles, measures and evidence. Journal of Economic Surveys, 30(5), 855-883, 2016. 2867. François Maniquet. Opportunities, welfare, and social justice: a review of Fishkin's bottlenecks. Journal of Economic Literature, 55(2), 580-591, 2017. 2864. Helmuth Cremer, Jean-Marie Lozachmeur and Pierre Pestieau. The design of long term care insurance contracts. Journal of Health Economics, 50, 330-339, 2016. 2860. Thomas Demuynck, Bram de Rock and Victor Ginsburgh. The transfer paradox in welfare space. Journal of Mathematical Economics, 62, 1-4, 2016.

2017/11. Arie Preminger and Giuseppe Storti. Least squares estima-

2017/19. Andreu Arena and Jean Hindriks. Intergenerational mobility, school inequality and social segregation. 2017/16. Mathieu Lefèbvre, Pierre Pestieau and Gregory Ponthière. Premature mortality and poverty measurement in an OLG economy. 2017/12. Marc Fleurbaey and François Maniquet. Optimal income taxation theory and principles of fairness. 2017/08. Benoit Decerf, Karel Van den Bosch and Tim Goedemé. A new measure of income poverty for Europe. 2017/06. Erik Schokkaert, Pierre Devolder, Jean Hindriks and Frank Vandenbroucke. Towards an equitable and sustainable points system. A proposal for pension reform in Belgium. 2017/03. Marie-Louise Leroux and Gregory Ponthiere. Working time regulation, unequal lifetimes and fairness.

ENERGY ECONOMICS 2849. Gauthier de Maere d'Aertrycke, Andreas Ehrenmann and Yves

Smeers. Investment with incomplete markets for risk: the need for long-term contracts. Energy Policy, 105, 571-583, 2017.

ENVIRONMENTAL ECONOMICS 2870. Thierry Bréchet, Yann Ménière and Pierre M. Picard. The clean

development mechanism in a world carbon market. Canadian Journal of Economics/Revue Canadienne d'Economique, 49(4), 1569-1598, 2016.

GROWTH AND DEVELOPMENT 2871. Davild de la Croix and Paula E. Gobbi. Population density, fer-

tility, and demographic convergence in developing countries. Journal of Development Economics, 127, 13-24, 2017.

INDUSTRIAL ORGANIZATION 2863. Per J. Agrell and Axel Gautier. A theory of soft capture. Scandi-

navian Journal of Economics, 119(3), 571-596, 2017. 2850. Jean J. Gabszewicz, Marco A. Marini and Ornella Tarola. Vertical differentiation and collusion: pruning or proliferation? Research in Economics, 71, 129-139, 2017.

MICROECONOMIC THEORY 2852. Dunia Lopez-Pintado. Influence networks and public goods. SERIEs: Journal of othe Spanish Economic Association, 8, 97-112, 2017.

OPTIMIZATION METHODS AND OPERATIONS RESEARCH 2851. Yurii Nesterov and Vladimir Spokoiny. Random gradient-free

minimization of convex functions. Foundations of Computational Mathematics, 17, 27-566, 2017. PAGE 18

QUANTITATIVE & ECONOMIC GEOGRAPHY 2869. Mirjam Schindler, Geoffrey Caruso and Pierre Picard. Equilib-

rium and first-best city with endogenous exposure to pollution from traffic. Regional Science and Urban Economics, 62, 12-23, 2017. 2857. Grégory Vandenbulcke, Luc Int Panis and Isabelle Thomas. On the location of reported and unreported cycling accidents: a spatial network analysis for Brussels. Cybergeo: European Journal of Geography. Systems, Modelling, Geostatistics. Document 818.

SUPPLY CHAIN MANAGEMENT 2862. Manuel Herrera, Per J. Agrell, Casiano Manrique-de-Lara-Penate, Lourdes Trujillo. Vessel capacity restrictions in the fleet deployment problem: an application to the Panama Canal. Annals of Operations Research, 253(2), 845-869, 2017.

OTHERS 2859. Axel Cleeremans, Victor Ginsburgh, Olivier Klein and Abdul Noury. What's in a name? The effect of an artist' s name on aesthetic judgments. Empirical Studies of the Arts, 34(1), 126-139, 2016. 2858. Victor Ginsburgh, Jacques Melitz and Farid Toubal. Foreign language learning and trade. Review of International Economics, 25(2), 320-361, 2017. 2856. Naill Bond and Victor Ginsburgh. Language and emotion. Chapter 8 in V. Ginsburgh and S. Weber, The Palgrave Handbook of Economics and Language, 231-260, 2016. 2855. Victor Ginsburgh and Shlomo Weber. Linguistic distances and ethnolinguistic fractionalization and disenfranchisement indices. Chapter 8 in V. Ginsburgh and S. Weber, The Palgrave Handbook of Economics and Language, 137-173, 2016. 2854. Victor Ginsburgh and Juan D. Moreno-Ternero. Ranking languages in the European Union: Before and after Brexit. European Economic Review, 93, 139-151, 2017.

tion for GARCH (1,1) model with heavy tailed errors.

ENVIRONMENTAL ECONOMICS 2017/10. Valeria Forlin and Eva-Maria Scholz. Leveraging consumers'

recycling in a circular economy.

GAME THEORY 2017/14. P. Jean-Jacques Herings, Ana Mauleon and Vincent Vannetelbosch. Matching with myopic farsighted players.

INDUSTRIAL ORGANIZATION

QUANTITATIVE AND ECONOMIC GEOGRAPHY

2017/18. Axel Gautier, Julien Jacqmin and Jean-Christophe Poudou.

2017/02. Mélanie Lefèvre and Joe Tharakan. An intermediary's opti-

The prosumers and the grid. 2017/07. Elias Carroni and Dimitri Paolini. Content acquisition by streaming platforms: premium vs. freemium. 2017/05. Eva-Maria Scholz. Corporate social responsibility and supplier development. 2017/04. Eva-Maria Scholz. How to license a downstream technology when upstream firms are capacity constrained?

mal geographical expansion choice under uncertainty.

SUPPLY CHAIN MANAGEMENT 2017/01. Matias Schuster, Stefan Minner and Jean-Sébastien Tan-

crez. Two-stage with safety stock placement decisions.

MICROECONOMIC THEORY 2017/17. Claude d'Aspremont and Rodolphe Dos Santos Ferreira. Enlarging the collective model of household behaviour: a revealed preference analysis. 2017/11. Saptarshi Mukherjee, Nozomu Muto and Eve Ramaekers. Implementation in undominated strategies with partially honest agents. 2017/09. Andrea Attar and Claude d'Aspremont. Trading under asymmetric informaiton: positive and normative implications.

OPTIMIZATION METHODS AND OPERATIONS RESEARCH 2017/13. Yurii Nesterov and Vladimir Shikhman. Dual subgradient

method with averaging for optimal resource allocation.

PAGE 19

CORE Newsletter #14 — Co-funding Needed

WE NEED YOU! CO-FUNDING THE CORE FELLOWSHIPS SINCE THE BEGINNING OF CORE, INTERNATIONAL EXCHANGE HAS ALWAYS BEEN OUR CORE VALUE, AND WE WOULD LIKE TO CONTINUE THIS TRADITION!

he post-doctoral fellowship program of CORE has always been at the heart of CORE’s international outreach. This program has helped many young scholars in their early careers, some even made it all the way to the Nobel Prize… Maintaining this program is a priority for CORE. The BAEF (Belgian American Education Foundation) has generously offered its administrative help and to partially co-fund the CORE Postdoctoral Fellowship Program if we can gather sufficient support from our “alumni” and friends, so WE NEED YOU ! This is a wonderful opportunity that will let us offer POST-DOCTORAL FELLOWSHIPS to top researchers based in the United States who would like to benefit from CORE’s international exposure to foster research connections in Europe. About $30.000 are needed to fund one post-doctoral researcher for one year. Ever since its creation in 1966, CORE contributed a lot to society and to the university. Last year’s conference gave us the opportunity to celebrate the NUMEROUS SCIENTIFIC ACHIEVEMENTS of the Center. Since we like numbers, let us just put a few of them forward: 180 international fellows, 2987 discussion papers, 4003 reprints, thousands of seminars, several hundred international conferences and the number of international prizes bestowed on our members is just as impressive. We would like to thank UCL for its unwavering support for the first 50 years of CORE. To achieve all this, on top of the staunch support of UCL, we could count on several GENEROUS DONATORS among which the Ford Foundation, the Rawls Foundation, Tractebel, the Drèze Bank, the Degroof Bank, and Total Fina. PLEASE CONSIDER DONATING TO HELP CORE PURSUE ITS SCIENTIFIC ADVENTURE with your financial support! Donations of US residents will be TAX-DEDUCTIBLE through the BAEF, donations made in Belgium will be tax-deductible through our own foundation.

HOW TO DONATE BY BELGIAN BANK TRANSFER TO:

BY U.S. BANK CHECK:

OR BY U.S. BANK TRANSFER TO:

Friends of CORE Voie du Roman Pays 34 BE 1348 Louvain-la-Neuve, BELGIUM N° TVA: BE0431 083 440 IBAN: BE22 7512 0243 0047 BIC: AXABBE22

mailed to the BAEF office in New Haven, Belgian American Education Foundation Inc. 195 Church Street, New Haven, CT 06510, USA With communication: [CORE Fellowship Program]

Belgian American Education Foundation Inc. JP Morgan Chase Bank, BIC code CHASUS33 234 Church Street New Haven, CT 06510, USA Routing Number: 021000021 Bank Account number: 860500316765 With communication: [CORE Fellowship Program]

CREDITS

CENTER FOR OPERATIONS RESEARCH AND ECONOMETRICS UNIVERSITÉ CATHOLIQUE DE LOUVAIN

, CONTACT

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