Paris node

Leader: Roger Guesnerie

The research of the two senior members of the Parisnode, (C. Chamley and R. Guesnerie) has been devoted for a long time to the critical assesment of the Rational Expectations Hypothesis. Chamley’ research has focused attention on the implications for macroeconomics of the phenomenon of herd behaviour. Guesnerie has argued for an “eductive” systematic assessment of the expectational robustness of equilibria and has developed applications with co-authors in many fields (partial equilibrium, finance, general equilibrium, short run or long run macroeconomics…). The books they have written, Chamley (2002), Guesnerie (2001-2005) – see the previous section of this document – provide some of the argument for the justification of the line of research of the international network.

The research of three other members of the Parisnode, G. Desgranges, S. Gauthier, P.Y Geoffard, has connections with the “eductive” approach : it is the case of the work on transmission of information through prices of Desgranges-Geoffard-Guesnerie (2003), but also more loosely of Gauthier (2003). To-day, Gauthier and Desgranges go on working on the effect of information on “eductive” expectational coordination (Desgranges-Gauthier(2011)).

O. Tercieux, M. Bianchi and P. Jehiel come to the subject from a game-theoretical background. Tercieux, relying on a global games culture, has worked alone (Tercieux(2010)) or with co-authors of the Princeton andTokyo node on the subject (see Princeton andTokyo bibliography). Bianchi and Jehiel (2009) have come to a more applied view or expectational coordination in a recent paper.G. Giraud comes to the subject from a more general equilibrium, incomplete markets approach (Giraud (2010)).

Last but not least, the Paris node has three scholars, who are not economists stricto sensu, but historian economist (P.C Hautcoeur (2007), historian and sociologist (E. Brian (2009)), sociologist (O. Godechot). All are able and willing to talk with economists and expect returns from being instrumental in instilling in the network their own understanding of the subject.