The objective of this master's degree is to provide a general curriculum in economics at the research level, allowing for a continuation into a PhD program.
Students will acquire the fundamental technics and concepts in economics, both theoretical and empirical, as well as a critical thinking about the way to use them.
The first year of the program (M1) is structured around 8 compulsory core courses that form the common ground on which the research specialization in the second year (M2) will be based, supplemented by two optional discovery courses and two research projects.
The M2 is entirely optional, allowing students to build, under the supervision of the faculty members, their own specific curricula adapted to their personal research agenda. Some will choose to specialize fully in one of the three fields of excellence of the Master's degree (1. Trade, Geography and Development Economics 2. Public and Behavioral Economics 3. Advances and Challenges in Macroeconomics). Others will choose more diversified and original combinations, allowing cross-fertilization between areas that are treated in a conventional way independently.
The Research Master thesis will allow students to demonstrate their ability to conduct independent, original, and innovative scientific research. To this end, they will mobilize all the skills acquired during their master's degree.
Location
GIF SUR YVETTE
Course Prerequisites
BA Economics, BS Mathematics, Licence d'Economie, Licence de Mathématique
Skills
Problematize an economic question and contextualize it socially, historically and within an academic literature.
Think in terms of models to reach a deeper understanding of an economic problem and evaluate potential solutions.
Collect, treat and analyze multi-dimensional economic datasets at research level.
Communicate professionally on a research outcome in front of various audiences.
Behave professionally as an economist, individually and collectively, in various organizations and in the whole society.
Post-graduate profile
At the end of the master, students will have the necessary skills to pursue careers requiring high level of expertise in economics, in the private sector, international organizations, public institutions, and of course academics.
Career prospects
At the end of the master, students will have the necessary skills to pursue careers requiring high level of expertise in economics, in the private sector, international organizations, public institutions, and of course academics.
Collaboration(s)
Laboratories
Réseaux Innovation Territoires et Mondialisation
Alimentation et Sciences Sociales
Economie Publique
Centre d'Etudes des Politiques Economiques de l'Université d'Evry
Centre international de recherche sur l'environnement et le développement.
Center for Economics in Paris-Saclay
Programme
The first semester includes two mandatory core courses of 6 ECTS among Group 1 ("Fundamental Methods), and two mandatory core courses of 6 ECTS among Group 2 ("Thematic Courses). The student must also obtain 6 ECTS during semesters 1 and/or 2 among the Groups "Discovery Courses 1 of semester 1 and "Discovery Courses 2 of semester 2, and attend a "Boot Camp on "Research Computing Tools and Methods (Group 4). The minimal number of ECTS to obtain in semester 1 is 24 ECTS. is 24 ECTS.
The purpose of the Boot Camp is to install software’s that will be used during the master and to initiate students to the basics of their use.
The goal is to train students' computational skills throughout the two years of the master's degree to participate in cutting-edge economic research and public policy analysis.
There will be homework problems counting for 40%, and two exams counting for 30% each.
Objectifs pédagogiques visés :
Contenu :
This course introduces fundamental mathematical methods of use in economics and Econometrics. There will be a focus on basic (point-set) topology (mostly in Eulidean Spaces), basic convex analysis, nonlinear unconstrained and constrained optimization, and an outlook on dynamic optimization methods.
Course Outline
Repetition of the essentials of real analysis on the real line. Extending to Euclidean spaces and basic topology via norms and metrics there, including continuity, compactness, completeness, and related concepts. Then we look at some convex analysis, including separation and support theorems. Abstract formulation of convex optimization problems. Then we relate these methods to multidimensional calculus methods and look in some details at Lagrange and Karush-Kuhn-Tucker methods for constrained optimization methods with equality and inequality constraints, respectively. Versions of the envelope theorem for the behavior of solutions to parametric optimization problems. We then look at the principle of dynamic programming with a bit more metric space theory to understand discretete time infinite horizon recursive optimization. Finally, we survey informally several methods to solve dynamic optimization problems in discrete time.
Bibliographie :
Lecture Notes will be made available before each unit.
Supplementary Readings
Sundaram, Rangarajan K. A first course in optimization theory. Cambridge University Press, 1996.
- This book is a good general reference for much of what we do in this course. Sadly, there are a lot of typos.
Dixit, Avinash K. Optimization in economic theory. Oxford University Press on Demand, 1990.
- This book provides a lot of economic intuition for optimization methods but not much formal details.
Stokey, Nancy L., Robert E. Lucas JR., with Edward C. Prescott, Recursive methods in economic dynamics. Harvard
There will be homework problems counting for 30%, and 70% for a written assignment in the form of a referee report for a current working paper from the fiels. Bonus points are given for active participation.
Objectifs pédagogiques visés :
Contenu :
This course introduces recent methods, models, and tools from contemporary information economics and the neccesary background material.
Learning Outcomes
Participants will be able to critically read large parts of the current research literature on asymmetric information, communication, and persuasion.
We start by discussing methods of modeling information and prove a version of Blackwell's theoreom on the comparison of information structures. We then look at correlated equilibria and their properties and discuss methods to implement correlated equilibria via cheap talk communication. We then go to games of asymmetric information and discuss appropriate generalizations of correlated equilibrium. In particular, we will look closely at the concepts of communication equilibrium and Bayes correlated equilibrium. We look at the canonical cheap talk model. Then we go on to look at Bayesian persuasion, a literature on the other end of the spectrum. We also look at recent work at cheap talk with “transparent motives” that elegantly connects the two literatures.
Prerequisites :
The students should have a good understanding and practice of basic calculus.
Bibliographie :
Lecture Notes will be made available before each unit.
General overviews:
Myerson, Roger B. "Communication, correlated equilibria and incentive
compatibility." Handbook of game theory with economic applications 2 (1994): 827-847.
Forges, Françoise. "Correlated equilibria and communication in games." Complex Social and Behavioral Systems: Game Theory and Agent-Based Models (2020): 107-118.
Bergemann, Dirk, and Stephen Morris. "Information design: A unified perspective." Journal of Economic Literature 57.1 (2019): 44-95.
Kamenica, Emir. "Bayesian persuasion and information design." Annual
Part 1 Cross-section and Panel data econometrics
Chapter 1 Introduction to the linear model
Definition
Frisch-Waugh theorem
Variance decomposition
Statistical Properties: bias, variance
Confidence interval
Hypothesis testing
Consistency of the OLS estimator
Generalized least squares estimator
Chapter 2 Instrumental variable estimator
Omitted variable bias analysis
The instrumental variable estimator
Chapter 3 Linear panel models
Notation
Pooled OLS estimation
Between estimator
Fixed effects or within estimator
Consistency of within estimator
Asymptotic distribution of within estimator
Matrix derivation
First differences estimator
Asymptotic distribution of the first-difference operator
Random effect model
Chapter 4 Dynamic panel data
True state dependence and unobserved heterogeneity
Inconsistency of standard panel estimators
Arellano-Bond estimator
Part 2 Time series econometrics
Chapter 1 What is a time series?
White noise
ARMA models
Lag operators and polynomials
Manipulating ARMA with lag operators
AR(1) to MA()
AR(p) to MA(): factoring lag polynomials
Multivariate ARMA models
Chapter 2 Autocovariance and autocorrelation functions
Definitions
Autocovariances ant autocorrelations of ARMA processes
Yule-Walker equations
Multivariate auto- and cross-correlations
Partial autocorrelation function
Chapter 3 Prediction and Impulse Response Functions
Predicting ARMA models
Forecasting MA models
AR and ARMA models
State space representation
Forecast from AR(1) representation
VARs in vector AR(1) representation
Impulse response function
Ecole Normale Supérieure Paris-Saclay, CEPS, DER SHS, 4 avenue des sciences, 91190 Gif-sur-Yvette, France
Chapter 4 Stationarity
Definition: weak and strong stationarity
Conditions for stationarity in ARMA
Chapter 5 Estimating autoregressions
Estimation of an AR(1)
Estimation of an AR(p)
Choice of the lag length
Estimation of VARs
Estimation of ARMA(p,q)
Chapter 6 Seasonality and Structural changes
Seasonality
Structural change
Chow tests
Dummy variables
Chapter 7 Models with trend
Random walk models
Random walk plus drift models
Removing the trend: differencing
Removing the trend: detrending
Dickey-Fuller tests
Final written exam: 80%
Project in econometrics: 20%.
Objectifs pédagogiques visés :
Contenu :
The first part of the course presents the basic tools of the econometric analysis of cross-section and panel data. The first chapter presents the linear regression model and the properties of the OLS estimator. The second chapter presents the instrumental variable estimator. The third chapter introduces panel data econometrics. We will also describe static and dynamic panel data analysis techniques that are useful for the analysis of longitudinal datasets.
The second part of the course studies the theory and application of time series methods that are frequently used in macroeconomics and financial econometrics.
For each chapter, we will present recent applications of these techniques from the academic literature in economics. A separate list of applied papers will be provided and some of them will be discussed in class.
Prerequisites :
• Probability and Statistics (L3)
• Introductory Econometrics (L3).
Bibliographie :
Cross-section and Panel data econometrics
Cameron, A. Colin, and Pravin K. Trivedi. Microeconometrics: methods and applications. Cambridge University Press, 2005.
Time series
Cochrane, J. H. (2005). Time series for macroeconomics and finance. Manuscript, University of Chicago, 1-136. Version Spring 1997; Pictures added Jan 2005
http://econ.lse.ac.uk/staff/wdenhaan/teach/cochrane.pdf
Enders, Walter, (2015), Applied econometric time series, Fourth edition, Wiley
Software used during tutorials and for the project: R language
https://www.r-project.org/
Online references on R:
https://cran.r
• 12x3h Main lectures, 8x1h30 Tutorials
• Grades are based on tutorials (50%) and a final exam (50%).
Objectifs pédagogiques visés :
Contenu :
Brief Course Description
This course will provide students with the analytical tools that are essential to understand the process of globalization through the international trade in goods. The lecture focuses on topics that are at the center of the policy debate: why do countries open to trade? What are the gains from trade? What are the distributional impacts of trade between and within countries?
Learning Outcomes
At the end of the course, students are expected to have a good knowledge of the mechanisms and predictions from the traditional models of trade, and from modern trade theories. Students will also be able to read research articles that can be used for the writing of policy notes.
Indicative Contents
1. Definitions, Broad Facts, and Road Map for the Course
2. Comparative Advantage and Trade
3. Monopolistic competition and trade
4. The Law of Gravity
5. Oligopoly and Trade
6. Trade Policies.
Prerequisites :
The material covered is not mathematically complex, but it is taught in a formal and rigorous manner, which assumes a good familiarity with basic economic concepts.
Bibliographie :
Required/Essential Readings
• Feenstra (2009). Advanced International Trade: Theory and Evidence. Princeton University Press. (F)
• Combes P.P, Mayer T. and J., Thisse (2008) Economic Geography, Princeton University Press. (CMT).
Recommended/Supplementary Readings
• Additional reading may complete (F) and (CMT) : Telos and VoxEU are two blogs that publish research-based policy articles from leading economists. A lot of the articles cover trade-related topics.
Thomas VENDRYES University/ENS Paris-Saclay, CEPS.
Procedure and organisation :
1. The Phenomenon of Economic Development
2. Classic Theories and Contemporary Approaches
3. Health and Education
4. Institutions
Written exam at the end of the semester (2hours).
Objectifs pédagogiques visés :
Contenu :
The objective of this course is to provide a presentation of the phenomenon of economic development, and an introduction to development economics. After a general depiction of the process of development, the main theories and schools of thought that structured the related research field are presented. Specific topics are then studied, through classical or contemporary research papers: on the micro side, health and education, and on the macro side, institutions. In all cases, both theoretical approaches and empirical methods will be presented.
Prerequisites :
For this course, students will need a good mastery of the basic, L3-level, concepts and mechanisms of economic theory and econometrics.
Bibliographie :
Banerjee & Duflo, Poor Economics, Public Affairs, 2011.
de Janvry & Sadoulet, Development Economics - Theory and practice, Routledge, 2016.
Perkins, Radelet, Lindauer & Block, Economics of Development (7th ed.), Norton, 2012.
During lectures, specific papers will be presented and discussed, and supplementary readings provided.
Written report (based on an article and/or an experiment design), possibly in pairs.
Objectifs pédagogiques visés :
Contenu :
Course Overview: This course provides an introduction to experimental economics. The emphasis will
be on the methodology of experimental economics, its relevance to testing economic predictions, and
identifying patterns of behaviors. Students will learn how to design experiments and interpret their
results. Participation in classroom games will help perfect the understanding of experimental methods.
The course is designed in four parts to favor the practice of experimental economics. The first part is
dedicated to the understanding of the experimental method. The second focuses on some fundamental
experimental methods to provide behavioral measures. The third part explores the field of social
preferences (altruism, trust, reciprocity). The last part is devoted to statistical and econometric methods
implemented to exploit experimental data.
Course Outline:
Experimental Economics: Principles and Methodology
Introduction: Why an experimental approach?
Methodological foundations of experimental economics
Rules and procedures in Experimental Design
Classroom Experiment: the Voluntary Contributions Game
Useful Methods to Elicit Risk Aversion, Ambiguity Aversion, Beliefs
The Holt & Laury measure
Investment Task Measures
The Bomb Task
Beliefs’ Elicitation and Bayesian Learning
Probability weighting and Prospect Theory
Ambiguity Aversion
Other-Regarding Preferences
Ultimatum Game
Dictator Game
Trust Game
Gift Exchange Game
Testing Economic Theory
Treatment testing
Parametric versus non-parametric approaches
Case study: Eliciting risk preferences.
Prerequisites :
Bachelor’s degree in Economics.
Bibliographie :
•
Bardsley N, et al. (2010), Experimental Economics: Rethinking the rules, Princeton University
Press.
• Dhami S (2016), The Foundations of Behavioral Economic Analysis, Oxford.
• Guala F (2005), The methodology of experimental economics, Cambridge: Cambridge University
Press.
• Holt CA (2019), Markets, Games, and Strategic Behavior: An Introduction to Experimental
Economics, Princeton University Press.
• Jacquemet N, L’Haridon O, (2018), Experimental Economics: Method and applications,
Cambridge: Cambridge University Press.
• Kahneman D (2012), Thinking, Fast and Slow, Penguin.
•
Période(s) et lieu(x) d’enseignement :
Period(s) :
Septembre - Octobre - Novembre.
Location :
GIF-SUR-YVETTE
The second semester includes two mandatory core courses of 6 ECTS among Group 1 ("Fundamental Methods), and two mandatory core courses of 6 ECTS among Group 2 ("Thematic Courses). The student must also obtain 6 ECTS during semesters 1 and/or 2 among the Groups "Discovery Courses 1 of semester 1 and "Discovery Courses 2 of semester 2, and take part in two projects for 6 ECTS (Group 4), for a yearly total of 60 ECTS.60 ECTS.
Hugo Molina, INRAE.
Julien Monardo, Telecom Paris.
Jean-Noël Senne, Université Paris Saclay.
Procedure and organisation :
Each block will be organized in 6 sessions of 3 hours each.
The grade will be based on three elements: a written exam (50 %), a presentation of an academic article (20 %), and questionnaires during TD sessions (30 %).
Objectifs pédagogiques visés :
Contenu :
This course is the natural extension of the Intermediate Econometrics course taught in the first semester. It is divided into two blocks:
· The first block (18H) studies the basic techniques of non-linear econometrics including:
• Lecture 1: Nonlinear Least Squares, Nonlinear 2SLS, and Iterative methods (Newton and Quasi-Newton).
• Lecture 2: Maximum Likelihood estimator.
• Lecture 3: Generalized Method of Moments estimator and binomial outcome models.
• Lecture 4: Discrete choice models: multinomial outcome models.
• Lecture 5: Censored and Truncated; Sample Selection Models.
• Lecture 6: Paper presentations
· The second block (18H) presents recent developments in the microeconomic analysis of impact evaluation. This course will explore a wide variety of techniques, such as:
• Lecture 1 : Randomized Controlled Experiments (RCT)
• Lecture 2 : Advanced Instrumental Variables (IV)
• Lecture 3 : Matching Methods
• Lecture 4 : Regression discontinuity (RDD)
• Lecture 5 : Difference-in-Differences (DID)
• Lecture 6 : Paper presentations
focusing not only on the estimators themselves and why they work, but also on the types of data they require and the assumptions that must hold for the estimates to be valid.
To complement their theoretical knowledge, students will also attend practical econometrics classes (12H).
Prerequisites :
Intermediate Econometrics (M1, S1).
Bibliographie :
• Angrist, J. D., & Pischke, J. S. (2008). Mostly harmless econometrics: An empiricist's companion. Princeton university press.
• Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: methods and applications. Cambridge university press.
• Davidson, R., & MacKinnon, J. G. (2004). Econometric theory and methods (Vol. 5). New York: Oxford University Press.
• Greene, W. H. (2012). Econometric Analysis 7th ed. Pearson.
• Takeshi, A. (1985). Advanced econometrics. Harvard university press.
• Train, K. E. (2009). Discrete choice methods with simulation. Cambridge university press.
• Wooldridge
The course is organized around 6 main classes of 3 hours
1. Introduction to the topic
2. Intertemporal optimization in discrete time
3. Dynamic programming and time-consistency
4. Optimal control in continuous time: basics
5. Optimal control: advanced considerations (constrained problems, infinite horizon, etc.) and particular features (discontinuous controls, bang-bang solutions, etc.)
6. Alternatives to the discounted utility model and a short introduction to viability theory along with 4 tutorials of 1.5 hours
a. The cake-eating economy in discrete time
b. Dynamic programming in practice
c. The cake-eating economy in continuous time
d. The simple fishery problem
Evaluation is based on a final written exam.
Objectifs pédagogiques visés :
Contenu :
This course aims at introducing the main tools used to model the dynamic aspects of economic problems. It addresses “fundamental methods,” with an emphasize on mathematical aspects and the way to interpret them in economic terms. As such, the course is not about dynamic economics and its results; it will not go deep into a specific topic, e.g., macroeconomic dynamics, but aims at providing the knowledge needed to address any topic from a dynamic perspective. In particular, the course discusses intertemporal equilibria analysis, dynamic programming, and optimal control. It focuses on so-called mechanistic models, i.e., models in which the economy evolves according to some explicit rules. As such, we will not consider statistical approaches or dynamic econometrics.
Students are expected to have a sufficient background in economics (microeconomics,
macroeconomics - comparative statics, decision theory, social choice theory) and in mathematics (static optimization, advanced calculus).
Prerequisites :
Economic Modelling 1 Decision, Coordination, Social Optimality.
Bibliographie :
Léonard D. and Long N.V. (1992) Optimal control theory and static optimization in economics. Cambridge University Press.
Seierstad A. and Sydsæter K (1987) Optimal Control Theory with Economic Applications. North-Holland, Advanced textbooks in economics (Volume 24).
Takayama A. (1974) Mathematical Economics. The Dryden Press: Hinsdale, Illinois.
Supplementary Readings
To be displayed during the course.
Chloé Le Coq is Professor of Economics at Université Paris 2 Panthéon-Assas (CRED) and
Research Fellow at the Stockholm School of Economics (SITE). She has held visiting positions
at Purdue University, the University of California Energy Institute at Berkeley, and the National
University of Singapore. Her research investigates topics related to antitrust policy, industrial
organization, and behavioural economics, with a particular focus on energy markets and social
innovation.
Hugo Molina is a researcher (CR) at the French national research institute for agriculture,
food and environment (INRAE). He does research in applied economics with a particular
focus on empirical industrial organization and vertical contracting. Prior to joining INRAE, he
was a postdoctoral fellow at KU Leuven. He received a Ph.D. in economics from École
polytechnique (CREST).
Julien Monardo is a postdoctoral researcher at Telecom Paris. He does research in
empirical industrial organization with a particular focus on structural demand estimation.
Procedure and organisation :
The assignments will be a combination of a final exam (50% of the final grade), a group
presentation/discussion of an assigned article (30 %), assignments in tutorial session (10%)
and course participation (10%).
·
Group presentation
Group presentations will be devoted to various articles within the course subject. Each
group is expected to present an article (from an offered list) and comment on the
discussion of another group.
· Exam
The final exam will be a three-hour sit-in exam that will combine verbal and analytical
questions. It will be based on readings and lectures.
· Attendance & participation (contribution to class discussions & in-class assignments)
We expect students to attend class and be active contributors to class discussions as we
work through the readings. During discussions students may be assigned to a team,
which will be given discussion questions and/or asked to participate in various in-class
assignments. Your grade for class participation will be based on the quality and quantity
of your contributions. Failure to contribute to class discussions will result in a low
participation score.
Objectifs pédagogiques visés :
Contenu :
COURSE OVERVIEW
This course aims at providing a theoretical and practical understanding of main issues in
industrial organization and competition policy. The course studies the strategic interaction
among firms in imperfectly competitive markets, the sources of market power, and the
rationale and impact of competition policy.
Lectures will make use of analytical tools and basic concepts in game theory as well as
empirical tools. Practical examples will be provided, and a few case studies will be discussed
throughout the course.
OBJECTIVES
This course offers students a first understanding of the field of industrial organization, and in
particular the firms’ strategic interaction within markets.
·
Learn about the major concepts of industrial organization
· Examine drivers and challenges of competition policy based on the analysis of firms’
strategic interaction
· Practice to systematically synthesize articles on specific cases of industrial organization
· Become familiar with existing empirical tools and practice applying them to concrete
cases.
Lecture 1 Monopoly
Monopoly vs. Perfect competition solution
Price Discrimination
Application: Price Regulation via peak load pricing
Lecture 2 Imperfect competition
Bertrand vs. Cournot competition
Sequential strategic decisions
Application: Forward market as power market mitigation mechanism
Lecture 3 Cartel and Collusion
Cartel’s Formation and Stability
Optimal deterrence policy
Application: Effectiveness of leniency programs
Lecture 4 Mergers
Understand the profitability of a merger
Welfare analysis of a merger
Application: The phenomenon of killer acquisitions
Lecture 5 Vertical relations and intermediated goods
The double-marginalization problem
Intermediaries and competition level
Application: Two-sided market
Lecture 6 Introduction to Empirical Industrial Organization
A brief history of empirical industrial organization
Markets with homogeneous products
Lecture 7 Demand Models in Differentiated Product Markets
Modelling consumer behavior: models in product space vs models in characteristics space
Discrete-choice models
Logit and nested logit models
Lecture 8 Demand Estimation in Differentiated Product Markets
Estimation of logit and nested logit models with market level data
Identification: endogeneity issues and instrumental variable regression
Implementation using Stata
Lectures 9 Market Power
Estimation of monopoly power
Estimation of market power in imperfectly competitive markets
Estimation of market power in vertical markets
Lecture 10 Application to Merger Simulation
Estimation of nested logit model
Estimation of markups
Simulation of a merger
Lectures 11 & 12 Group presentations.
Prerequisites :
The students are expected to have background knowledge in microeconomics (including
consumer optimization, producer optimization, social welfare analysis, regulation), be familiar
with algebra, basic game theory(including simultaneous and sequential games with complete
information, repeated games, and collusion), as well as understand and be able to interpret
basic econometrics (including OLS, panel data, IV, difference-in-difference analysis). Students
without the required training can take the course but they need to be prepared to work very
hard to keep up with the pace of the course.
Bibliographie :
The full list of references will be provided at the beginning of the course covering papers to be
discussed / presented during the different sessions.
Standard Industrial Organization textbooks are also useful background reading. Such
textbooks include for instance:
· Ackerberg, D., Benkard, C. L., Berry, S., & Pakes, A. (2007). Econometric tools for
analyzing market outcomes. Handbook of econometrics, 6, 4171-4276.
· Aguirregabiria, Victor. 2019. Empirical Industrial Organization: Models, Methods, and
Applications. Unpublished.
· Belleflamme, Paul and Martin Peitz (2015), Industrial
Michel GUILLARD (Université d’Évry-Val-d’Essonne & Université Paris-Saclay).
Procedure and organisation :
1. Money and Public Finance
(a) The household program in a monetary economy
(b) The Treasury, the central bank and the government budget constraint
(c) Equilibrium and the Ricardian equivalence
2. The Flexible Price Equilibrium
(a) The flexible price model
(b) The real equilibrium
(c) Monetary equilibra
3. Foundations of the New Keynesian Model
(a) The household program in a multiple goods economy
(b) The firms program: Imperfect competition and nominal rigidities
(c) Equilibrium and properties of the simple “3-equation model”
4. Fiscal and Monetary Policy in the NK Model
(a) Fiscal Policy in “normal time” and in exceptional time
(b) Rules vs discretion: the credibility problem of the central bank
(c) Monetary and Fiscal policy in practice
Tutorials preparation, in-class tests, and class participation (30%)
Final exam (70%).
Objectifs pédagogiques visés :
Contenu :
The objective of this course is to present to students the theoretical foundations of the workhorse short-term macroeconomic model (the so-called "3-equation New Keynesian model") and its implications for economic policy.
It builds on the methodological background of the course “Macroeconomics 1: Theory and Applications”, using a simplified version of the RBC model, without capital accumulation, in order to introduce money, competition imperfections and micro-founded nominal rigidities.
This framework is then used to study the effects and usefulness of monetary and fiscal policies in response to different macroeconomic shocks (financial, energy, climate, etc.).
Bibliographie :
The main source of material for this course will be the lecture notes (on eCampus)
CHALLES, EDOUARD (2019), Macroeconomic Fluctuations and Policies, MIT Press.
CHUGH, SANJAY (2015), Modern Macroeconomics, MIT Press.
GALÍ, JORDI (2015). Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework, Second Edition, Princeton University Press. Main reference.
ROMER, DAVID (2019). Advanced Macroeconomics, Fifth Edition, McGraw Hill.
WALSH, CARL (2010). Monetary Theory and Policy, The MIT Press Cambridge, Massachusetts, London.
WICKENS, MICHAEL (2012)
1. Public spending and State formation
2. Wealth inequality
3. Introduction to optimal taxation
4. Labor income taxation and redistribution
5. Capital taxation
6. Public goods and externalities
7. Introduction to Social choice
To validate the course, students are required to attend all lectures and actively
participate in class and to take the exams: One mid-term exam during tutorials and
a final exam.
Objectifs pédagogiques visés :
Contenu :
The objective of this course is to present an introduction to public economics, with
special emphasis on public spending, normative theories of government intervention
and redistribution, taxation and transfer policies, social preferences.
Prerequisites :
This course is based on a solid microeconomic background. A great source which starts with the basics is:
• Varian, H. R. Microeconomic Analysis, Norton, New York, 3rd edition.
• Varian, H. R. Intermediate Microeconomic : a modern approach, Norton, New York, 7th edition.
• This course is mathematically intensive, it is worth reviewing secondary school mathematics for a good mastering of the course.
Bibliographie :
Those references below are recommended readings.
Atkinson, A.B. and J. Stiglitz, Lectures on Public Economics, New York: McGraw
Hill, 1980. [New edition Princeton University Press, 2015]
Auerbach, A. and M. Feldstein, eds., Handbook of Public Economics, 4 Volumes,
Amsterdam: North Holland, 1985, 1987, 2002, and 2002.
Gruber, J. Public Finance and Public Policy, 6th Edition. New York: Worth Publisher,
2019.
Kaplow, L. The Theory of Taxation and Public Economics. Princeton University
Press, 2008.
Mirrlees, J. Reforming the Tax System for the 21st Century The Mirrlees
Review, Oxford University
1. The industrialization of Knowledge production: to investigate changes in knowledge production, we consider a parallel approach as in tranditional industrialization, replacing capital with data.
2. Data as fuel for growth: to investigate if data accumulation is an engine of growth as well as capital, labor and technology.
3. Data, firm size and investors’ changing trading strategies: to understand if data contribute to big firms more.
4. Measuring and Valuing Data in Market Prices: to understand how much data is in the market and what is its value.
5. Data Platforms: Lots of data is collected by intermediaries who creat the transaction data, like amazon, alibaba. We will study the platform strategies and competition.
Project or written exam.
Objectifs pédagogiques visés :
Contenu :
A growing number of companies derive most of their value not from physical assets, but from intangibles ones, like data. Data and new data technologies are changing consumption, production, labor and valuation. Does this transformation from an industrial economy to a data economy bring with it new economics? Is the accumulation of data contributing to big firms getting bigger ? Can changes in data technology explain some of the decline in the labor share? How should we measure or value data when it is often traded at zero price, bartered for a user’s access to a digital service? Finally, can the accumulation of data be an engine of growth? This course deploys information economics tools to understand the data economy, derives new approaches to measuring data and develops a standard economic framework that can be used for data policy evaluation.
Bibliographie :
1. “The Changing Economics of Knowledge Production”, Simona Abis and Laura Veldkamp, Working paper.
2. “Impact of Artificial Intelligence on the Labor Market”, Michael Webb, Working paper
3. “A growth model of the data economy”, Maryam Farboodi and Laura Veldkamp, Working paper.
4. “Th race between man and machine: Implications of technology for growth, factor shares and employment”, Daron Acemoglu and Pascual Restrepo, Amercian Economic Review 108(6): 1488-1542.
5. “Robots and jobs: Evidence from US labor markets, Daron Acemoglu and Pascual Restreepo, Journal of Political Economy 128(6): 2188
Economics of the Environment, Innovation and Sustainable Growth
Language(s) of instruction :
AN
ECTS :
2
Détail du volume horaire :
Lecture :20
Modalités d'organisation et de suivi :
Coordinator :
Pedagogical team :
Caroline ORSET, Associate Professor, AgroParisTech-Université Paris-Saclay.
Procedure and organisation :
1. Introduction
Property Rights, Externalities, and Environmental Problems
2. Course 2
Imperfect market structures and Coase theorem
Introduction to Benefit-Cost analysis
3. Course 3
Decision making criteria
4. Course 4
Dynamic Efficiency and Sustainable Development
Efficient intertemporal allocation
5. Course 5
Energy and mineral markets
6. Course 6
Water and land markets and pollution
7. Course 7
Forest and fisheries markets
8. Course 8
Economics of Pollution Control
Population growth and economic growth
9. Course 9
Climate Change and poverty
10. Course 10
The Quest for Sustainable Development
Animal welfare economics
Dissertation and oral presentation on a topic of the course.
Objectifs pédagogiques visés :
Contenu :
The course provides students with the skills to assess, analyze and recommend economic policies and strategies to tackle environmental issues such as pollution, climate change, renewable energy, and biodiversity conservation.
More specifically, we will study the effectiveness of incentive tools for public decision-makers intended to improve environmental quality and promote sustainable development (Pigovian tax, emission rights trading systems, nudges, etc.), or on their social acceptability. Then, we will analyze firms' green business strategies such as their investments in cleaner technologies (innovation), product labeling or socially responsible investments to improve their competitiveness while respecting the environment. Finally, we will discuss how firms (industrial lobby) and influence groups (NGOs, consumer lobby) can influence environmental economic policies and human behavior and the consequences on biodiversity, ecosystems, and animal welfare.
Prerequisites :
None.
Bibliographie :
1. Buchholz, W., Rubbelke, D. (2019). Foundations of environmental economics.
2. Harris, J.M., Roach, B. (2018). Environmental and natural resource economics-a contemporary approach. 4e edition.
3. Mariel, P. et al. (2021). Environmental valuation with discrete choice experiments – Guidance on design, implementation, and data analysis.
4. Nakayama, K., Miyata, Y. (2019). Theoretical and empirical analysis in environmental economics.
5. Tietenberg, T., Lewis, L. (2018). Environmental and natural resource economics, 11th edition.
Supplementary Readings
1. David J. Lewis, David M. Kling, Steven J
Grading is based on a research project on gender and discrimination or/and a referee report on
suggested papers.
Objectifs pédagogiques visés :
Contenu :
Brief Course Description
This course uses basic microeconomic theory and recent empirical studies to examine the
causes and consequences of gender and racial differences in economic outcomes. Topics
covered may include fertility decisions, human capital investment, the labor force participation
choice, the gender gap in earnings, and occupational choice.
Learning Outcomes
We will initiate a discussion on an important topic by
Examining gender and racial gaps.
Discussing their connection to discrimination.
Understanding the main theories of discrimination.
Dissecting some (key) empirical papers.
Developing an understanding of how data can be used to test economic theory, and
how economic theory can be used to interpret data, focusing on identification of
policy-relevant parameters.
Inspiring research ideas
Indicative Contents
1. Definitions, Broad Facts, and Road Map for the Course
2. Divergent Paths
3. Taste-Based Discrimination
4. Orchestrating Impartiality
5. Statistical Discrimination
6. The Gender Earnings Gap in the Economy and the Gig Economy
7. Do Quotas Work?
8. Algorithmic Bias.
Prerequisites :
Good microeconomic and econometric skills.
Bibliographie :
Bertrand M. & E. Duflo. 2016. "Field Experiments on Discrimination," NBER
WP22014.
Blau F.D. & L.M. Kahn. 2017. "The Gender-Wage Gap: Extent, Trends, and
Explanations". Journal of Economic Literature 55(3), 789–86.
Goldin C. & C. Rouse. 2000. "Orchestrating impartiality: The impact of “blind”
auditions on female musicians". American Economic Review, 90(4) 715–741.
Niederle M. 2016. “Gender”. Handbook of Experimental Economics, second edition,
Eds. John Kagel and Alvin E. Roth, Princeton University Press, 481-553.
Students will be required to work in groups of 2 or 3 to apply standard statistical and econometric methods to real data sets, write a short essay and deliver their main results in an oral presentation.
Période(s) et lieu(x) d’enseignement :
Period(s) :
Décembre - Janvier - Février - Mars - Avril.
Location :
GIF-SUR-YVETTE
Modalités de candidatures
Application period
From 01/02/2022 to 08/03/2022 From 10/05/2022 to 07/06/2022
Compulsory supporting documents
Copy diplomas.
Copy of identity document.
Motivation letter.
All transcripts of the years / semesters validated since the high school diploma at the date of application.
Curriculum Vitae.
Additional supporting documents
2nd letter of recommendation (compulsory for candidates who have already been enrolled in higher education in France before).
Letter of recommendation (compulsory for candidates who have already been enrolled in higher education in France before).
VAP file (obligatory for all persons requesting a valuation of the assets to enter the diploma).
Certificate of English level (compulsory for non-English speakers) or GMAT / GRE test results.
Detailed description and hourly volume of courses taken since the beginning of the university program.
- Applications for admission for the 2022-2023 academic year must be made on the Université Paris-Saclay website from February 2022.
- The MoE welcomes students with a strong quantitative and mathematical background in economics and social sciences, or students with a bachelor in mathematics.
- No English test is required but applicants need to submit proof of their ability to keep up with classes in English (such as a certificate from the university).