La 35th edition of the Journées de Microéconomie Appliquée (JMA) is held in Bordeaux (France) on Thursday 7 June and Friday 8 June 2018. It is organised by the GREThA (Theoretical and Applied Economics Research Group), UMR CNRS 5113 of the’University of Bordeaux.
Discover the programme : https://jma2018.sciencesconf.org/program
The researchers from the Economics of Defence Chair present their work at the JMA: a first article on arms transfers and a second on monetary illusion.
Summaries of this work:
Trading arms with the enemy: An approach based on guns versus butter models
This article, co-written by Julien Malizard (researcher at the Chair in Defence Economics) and Antoine Pietri (IRSEM), aims to theoretically explore arms transfers. The model pits two «rivals» against each other in the butter and banana« dilemma» The production of guns provides an increase in security, but at the expense of «butter». In the model, the gun can be used both to protect the producer and for arms transfers.
From a formal point of view, the three-stage model the choice of quantity of weapons transferred, the arms production and finally the production value. Contrary to previous work, we show that there are conditions for mutually beneficial arms transfers. This theoretical result illustrates certain historical factss: the arms trade between the UK and Germany on the eve of the 1st World War, or the (aborted) sale of the «Mistral» ships from France to Russia.
Money illusion, financial literacy and numeracy: experimental evidence
