The Local Effects of an Innovation: Evidence from the French Fish Market

52 Pages Posted: 17 Jan 2017

See all articles by Laurent Gobillon

Laurent Gobillon

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); National Institute of Demographic Studies (INED)

Francois-Charles Wolff

University of Nantes

Date Written: January 2017

Abstract

In this paper, we investigate the effect on quality, quantity and prices of an innovative fishing gear introduced for a subsample of vessels on a single wholesale fish market in France. Estimations are conducted using transaction data over the 2009-2011 period during which the innovation was introduced. Using a difference-in-differences approach around the discontinuity, we find that for the treated the innovation has a large effect on quality (29.2 percentage points) and prices (23.2 percentage points). A shift in caught fish species is observed and new targeted species are fished very intensively. We also quantify the treatment effect on the treated market from aggregate market data using factor models and a synthetic control approach. We find a sizable effect of the innovation on market quality which is consistent with non-treated vessels adapting their fishing practices to remain competitive. The innovation has no effect on market quantities and prices.

Keywords: difference in differences, discontinuity, factor models, fish, innovation, product prices, product quality, synthetic controls

JEL Classification: L11, Q22

Suggested Citation

Gobillon, Laurent and WOLFF, FRANÇOIS-CHARLES, The Local Effects of an Innovation: Evidence from the French Fish Market (January 2017). CEPR Discussion Paper No. DP11757. Available at SSRN: https://ssrn.com/abstract=2900174

Laurent Gobillon (Contact Author)

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France

National Institute of Demographic Studies (INED) ( email )

133, Boulevard Davout
Paris cedex 20, France 75980
France
+33 1 5606 2016 (Phone)
+33 1 5606 2199 (Fax)

HOME PAGE: http://laurent.gobillon.free.fr/

FRANÇOIS-CHARLES WOLFF

University of Nantes ( email )

1, quai de Tourville BP
Nantes Cedex 1
Nantes, 44313
France

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