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dc.contributor.authorANDRÉS CEREZO, David Jesús
dc.date.accessioned2021-06-28T10:39:36Z
dc.date.available2021-06-28T10:39:36Z
dc.date.issued2021
dc.identifier.citationFlorence : European University Institute, 2021en
dc.identifier.urihttps://hdl.handle.net/1814/71758
dc.descriptionDefence date: 22 June 2021en
dc.descriptionExamining Board: Professor David Levine (European University Institute); Professor Philipp Kircher (Cornell University); Professor Gerard Llobet (Centro de Estudios Monetarios y Financieros); Professor Guido Tabellini (Bocconi University)en
dc.description.abstractThis thesis is a collection of three independent essays in applied microeconomic theory. The first chapter, co-authored with Milena Almagro, explores the conditions under which a state promotes a shared national identity on its territory. A forward-looking government that internalizes identity dynamics shapes them by implementing nation-building policies. Assimilation attempts are constrained by political unrest, electoral competition, and the intergenerational transmission of identities. We find the long-run evolution of identities to be highly sensitive to initial conditions and to temporary shocks that affect the relative political power of the ethnic groups. Interestingly, when the conditions to promote the national identity are not present, the central government avoids long-run conflict by allowing regional identities to thrive. The results point to different nation-building behavior between autocracies and democracies, with the latter being more likely to preserve regional identities. The second chapter, co-authored with Natalia Fabra, analyzes how firms' incentives to operate and invest in energy storage depend on the market structure. For this purpose, we characterize equilibrium market outcomes allowing for market power in storage and/or production, as well as for vertical integration between storage and production. Market power reduces efficiency through two channels: it induces an inefficient use of the storage facilities, and it distorts investment incentives. We illustrate our theoretical results by simulating the Spanish wholesale electricity market. The results are key to understanding how to regulate energy storage, an issue which is critical for the deployment of renewables. The third chapter explores the difficulties that endogenous preferences pose for normative work, using environmental policy design as a motivating example. I first assess how the major positions in welfare economics can be adapted to contexts in which policies shape preference formation. The implications for policy design of using different welfare criteria are then illustrated with a simple model of carbon pricing. An empirically implementable method is proposed to micro-found the relative weights that a standard welfarist approach could give to pre-policy and post-policy preferences.en
dc.description.tableofcontents-- Part 1. The Construction of National Identities -- 1.1 Introduction -- 1.2 Related literature -- 1.3 Model -- 1.4 Solution to the dynamic problem and main results -- 1.5 Non-interior steady state: A general result -- 1.6 Nation-building under electoral competition -- 1.7 Interpretation of the results: Case studies -- 1.8 Conclusion and ways forward -- Part 2. Storing Power: Market Structure Matters -- 2.1 Introduction -- 2.2 The Model -- 2.3 The Social Planner Solutions --2.3.1 The First-Best -- 2.3.2 The Second-Best -- 2.4 The Market Solutions -- 2.4.1 Competitive Storage -- 2.4.2 Independent Storage Monopolist -- 2.4.3 Vertically Integrated Storage Monopolist -- 2.5 Comparison across Market Structures -- 2.6 Extensions and Variations -- 2.7 Simulation of the Spanish Electricity Market -- 2.7.1 Scenarios -- 2.7.2 Results -- 2.8 Conclusions -- Part 3. Normative Analysis of Environmental Policy with Endogenous Preferences -- 3.1 Welfarist approach: preference satisfaction -- 3.2 Paternalism and substantive normative criteria -- 3.3 Non-consequentialist approaches -- 3.4 Normative analysis in a model of endogenous environmentalist preferences -- 3.4.1 Model set-up -- 3.4.2 Implications of different welfare criteria -- 3.5 Conclusions -- Appendix A -- Appendix B -- Bibliographyen
dc.format.mimetypeapplication/pdfen
dc.language.isoenen
dc.publisherEuropean University Instituteen
dc.relation.ispartofseriesEUIen
dc.relation.ispartofseriesECOen
dc.relation.ispartofseriesPhD Thesisen
dc.relation.replaceshttps://hdl.handle.net/1814/70117
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.subject.lcshMicroeconomics
dc.subject.lcshEnvironmental economics
dc.titleEssays on applied microeconomic theoryen
dc.typeThesisen
dc.identifier.doi10.2870/367371
eui.subscribe.skiptrue
dc.description.versionChapter 1 ‘The Construction of National Identities' of the PhD thesis draws upon an earlier version published as an article 'The construction of national identities ' (2020) in the journal ‘Theoretical economics’


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