HEC Paris

About: HEC Paris is a education organization based out in Jouy-en-Josas, France. It is known for research contribution in the topics: Investment (macroeconomics) & Market liquidity. The organization has 584 authors who have published 2756 publications receiving 104467 citations. The organization is also known as: Ecole des Hautes Etudes Commerciales & HEC School of Management Paris.

Sectoral Effects of Social Distancing

Abstract: The health crisis caused by the outbreak of the COVID-19 virus has led many countries to implement drastic social distancing rules. By reducing the quantity of labor, social distancing in turn leads to a drop in output which is difficult to quantify without taking into account relationships between sectors. Starting from a standard model of production networks, we analyze the sectoral effects of the shock in the case of France. We estimate that six weeks of social distancing brings GDP down by 5.6%. Apart from sectors directly concerned by social distancing mesures, those whose value added decreases the most are upstream sectors, i.e. sectors most distant from final demand. The same exercise is carried out for other European countries, taking into account national differences in sectoral composition and propensity to telework. Finally, we analyze the economic impact of selectively phasing out social distancing by sector, region or age group.

Illiquidity Contagion and Liquidity Crashes

Abstract: Liquidity providers often learn information about an asset from prices of other assets. We show that this generates a self-reinforcing positive relationship between price informativeness and liquidity. This relationship causes liquidity spillovers and is a source of fragility: a small drop in the liquidity of one asset can, through a feedback loop, result in a very large drop in market liquidity and price informativeness (a liquidity crash). This feedback loop provides a new explanation for comovements in liquidity and liquidity dry-ups. It also generates multiple equilibria.

Willing and Able: A General Model of Organizational Responses to Normative Pressures

Abstract: We develop a conceptual understanding of when and how organizations respond to normative pressures. More precisely, we examine two main factors underlying the willingness and ability of organizatio...

Tracing Performance in the Pharmaceutical Industry: Ambivalence, Opacity and the Performativity of Flawed Measures

Abstract: In this paper we explore performance measurement practices in the pharmaceutical industry with particular focus on the inscribing (or ‘tracing’) of pharmaceutical representatives (‘drug reps’) responsible for the promotion of prescription medications to general practitioners and other healthcare professionals. We draw upon Latour’s sociology of translation to explore performance measures in the organizational field of pharmaceutical companies operating in France. Access to sales data is heavily circumscribed by government regulation of the health sector: doctors’ prescriptions that generate sales remain hidden from pharmaceutical companies. We explore how organizational actors build control and address problems of ‘circulating reference’ (Latour, 1999) in this setting. We show how ambivalence, opacity, bricolage, and practical actions enabled by inscription devices strengthen networks of performance measurement. In so doing, we contribute to the sociology of translation by highlighting how weak references can perform and circulate without reversibility in the chains of transformation between matters and forms. We also seek to add to and to depart from the literature on performance measurement focusing on transparency and certainty as key features for ‘successful’ implementation of performance measures.