Master of Science
M1 Economics and public policy
Economics
Head of Program:
• Pierre Cahuc
Involved ParisTech member institutes and contact professors:
• École Nationale de la Statistique et de l'Administration Économique, Elise Coudin
Other partners (academic and industrial):
• Sciences Po, Yann Algan
Master of Science - M1 Economics and public policy Last Modification: Thu 28 October 2010
École Polytechnique
Program Language: English
Context: The master Economics and Public Policy (EPP) has been designed to prepare the next generation ofleaders in the economic policy-making and in the evaluation of public policies. This master's program bringstogether three outstanding international institutions: Ecole Polytechnique (X), Ecole Nationale de laStatistique et de l’Administration Economique (ENSAE) and Sciences Po.
Aims: Le master Economics and public policy (EPP) est un programme multidisciplinaire, avec une dominante enéconomie, visant à fournir les outils et les compétences nécessaires à l'évaluation de politiques publiquesdans une large palette de situations. Le programme se concentre sur les outils analytiques et quantitatifsdéveloppés en économie pour construire et évaluer les politiques publiques, avec des cours enmicroéconomie, macroéconomie, économétrie et analyse des politiques publiques. Toutefois,l’enseignement proposera également une approche multidisciplinaire indispensable pour comprendre lespolitiques publiques, avec des cours en droit, science politique et management. De plus, le master s’ouvrevers des enseignements professionnels avec des ateliers d’étude de cas, des cours électifs dans différentdomaines de l’intervention publique et le stage de recherches de troisième année.
Content: The 1st quarter (20 ECTS) : Microeconomics, Macroeconomics and Econometrics. The 2nd quarter (20ECTS) introduces the 2nd year specialization. During the 3rd quarter, an internship has to be made in apublic administration, consulting offices or a research center. It is concluded by a master's thesis on theevaluation of a public policy (20 ECTS). Each course (5 ECTS) includes lectures (18 hours) and classes(18 hours).
Skills acquired: - Mastering of analytical and quantitative economic tools;- Multidisplinarity;- Expertise in public policyevaluation and economic policy-making;- Modelling.
Further opportunities: La première année du programme EPP est indiquée pour les étudiants souhaitant poursuivre dans la 2ndeannée de ce master, comme à d'autres spécialités proposées par le Département d'économie enpartenariat avec d'autres établissements d'enseignement supérieur :- M2 Analyse et Politiqueéconomique,- M2 Economie du développement durable et de l'énergie.
Les étudiants pourront s’orienter vers la recherche, en doctorat, ou vers des carrières dans l'administrationéconomique et dans des organisations internationales.
Career prospects: Ce programme prépare les étudiants aux métiers ayant une composante économique significative dans uncadre privé ou public, national ou international. Ils peuvent notamment viser des postes d'administrationéconomique, de conseil en économie et stratégie, de chercheur en économie et finance.
Highlights: EPP master's programme is an multidisplinary international training, fully taught in english,bringing togetherthree top level institutions of higher eduction. EPP master's programme is supported by the "EconomicSociety", a structure bringing together professionals and future professionals in economics of EcolePolytechnique, ENSAE and Sciences Po (with academic and social events). All courses are taught inEnglish in order to meet the international.
Admission: Online admission based on the evaluation of academic transcripts, statement of purpose and letters ofrecommendation.
Master of Science - M1 Economics and public policy Page 2 / 51
École Polytechnique
Winter session (deadlines: March 1 for application, April 15 for acceptance confirmation). Spring session(deadlines: May 1 for application, June 15 for acceptance confirmation).
Calendar: Arrivals (M1): 9/05/2011S1 (courses):Q1 : October - DecemberS2 (courses and internship/research project):Q2 : January - March.Q3: April - June/July
Contact: Master's administration office:christel.cornat[at]polytechnique.fr
Main program Websitehttp://econ.sciences-po.fr/master-epp
Program Contents : • Master 1 Economics and Public Policy (EPP) - "Ingénieur" Curriculum • Master 1 Economics and Public Policy (EPP)Quarter 1 (20 ECTS) :Compulsory science courses (4X4 ECTS): see science curriculum above
Elective course (1x4 ECTS): see elective curriculum above
Quarter 2 (20 ECTS) :Compulsory science courses (3X4 ECTS): see science curriculum above
Elective courses (2x4 ECTS): see elective curriculum above
Quarter 1 (20 ECTS) :Compulsory science courses (4X4 ECTS): see science curriculum above
Elective course (1x4 ECTS): see elective curriculum above
Quarter 2 (20 ECTS) :Compulsory science courses (3X4 ECTS): see science curriculum above
Elective courses (2x4 ECTS): see elective curriculum above
Quarter 3 (20 ECTS) :Internship/Preliminary dissertation (1x20 ECTS):
• ECO590 - Research Internship
Master of Science - M1 Economics and public policy Page 3 / 51
École Polytechnique
MSc in Engineering
Master 1 Economics and Public Policy (EPP)- "Ingénieur" CurriculumProgram Language: English
Program Contents :Period 1 - Fall3 compulsory courses • ECO552A - Econometrics : Intermediate Econometrics • ECO553 - Economic Growth • ECO554 - Microeconomics for Public PolicyChoose 1 specialization course • ECO571A - Public Policy and the Law • ECO571B - Political Sciences & Public Policy • ECO572 - International EconomicsPeriod 2 - Winter3 compulsory courses • ECO561 - Macroeconomics : business cycles • ECO562 - Econometrics and Public Policy Evaluation • ECO563 - Public Economics, Welfare, and InstitutionsPeriod 2 - Winter1 compulsory course • ECO566 - Industrial Organization • ECO568 - Economics of InformationChoose 1 specialization course • ECO581A - Economic Policy • ECO581B - Time Series / Panel Data • ECO582 - Economics and Competition Policy • ECO584 - Empirical Methods in Environmental EconomicsPeriod 3 - SpringInternship research
• ECO591 - Microeconomics and Business Strategies • ECO592 - The Macroeconomics and Political Economy • ECO593 - Bank, Finance
Last Modification: Sun 26 May 2013
Master of Science - M1 Economics and public policy Page 4 / 51
École Polytechnique
ECO552A Econometrics : Intermediate Econometrics
This course sets out to introduce students to the main econometrical methods used for that purpose (linearregression, instrumental variables, simultaneous equations, panel data, dichotomous variables and auditsand evaluation methods). Concrete examples (estimates of production functions, wage equations, moneydemand and assessment of employment policies) feature prominently on the course.
Economics is a discipline that, without being an experimental science, has been built up on observation ofthe facts and tests the accuracy of its theoretical concepts against empirical facts. Indeed, the ability toprocess large data sets into meaningful statistics is a much sought-after skill in the professions with asignificant economic, para-economic or financial component.
Syllabus:1. The linear regression model (Ordinary least squares)2. Hypothesis testing in the linear regression model; generalized least squares3. Endogeneity: definition and examples4. Instrumental variables5. The panel linear model with fixed effects6. Qualitative models: logit and probit models7. Other qualitative models: ordered probit , multinomial logit, etc.8. Tobit model: the selection bias9. Evaluation methods
References:- Angrist J. et Pischke J.-S., 2008, Mostly Harmless Econometrics: An Empiricist's Companion. PrincetonUniversity Press.- Cameron A. C. et Trivedi P., 2005, Microeconometrics: Methods And Applications. Cambridge UniversityPress- Greene W. H., 2008, Econometric Analysis. Pearson Education, 6th International Edition.- Wooldridge J. M., 2008, Introductory Econometrics. South-Western, Div of Thomson Learning.
Course taught in English
Teaching coordinator : Francis Kramarz, Michaël VisserTerm : FallNumber of hours : 36ECTS Credits : 4Last Modification : Monday 19 November 2012
Master of Science - M1 Economics and public policy Page 5 / 51
École Polytechnique
ECO553 Economic Growth
This course is devoted to the analysis of growth and cycles. The first part presents stylized facts abouteconomic growth in the long term in a historical and an international perspective. Then theoretical andempirical approaches are used to shed light on the industrial revolution of the eighteen and the nineteencenturies and on the economic growth of modern economies. The second part analyzes cycles withapplications to monetary policy and international economics.
Syllabus:The source of economic growthSaving, accumulation of capital and growthTechnological progress and creative destructionGrowth and unemploymentCycle : stylized factsKeynesian cycles and Lucas’ criticReal cycles and optimal fluctuationsInternational cyclesCycles and monetary policy
References:-Aghion, P. and Howitt, P. (1998), Endogenous Growth Theory, MIT Press. -Barro, R. and Sala-I-Martin, X. (2003), Economic Growth, McGraw-Hill Advanced Series in Economics.-T. Cooley and E. Prescott , Chapter 1, Frontiers of Business Cycle Research, Princeton University Press-Hairault, J.O. 1995, Les Fluctuations conjoncturelles, Economica-R. King and S. Rebelo , (2000), Resuscitating Real Business Cycles, Handbook of Macroeconomics.
Course taught in English
Teaching coordinator : Pierre CahucTerm : FallNumber of hours : 36ECTS Credits : 4Last Modification : Friday 07 December 2012
Master of Science - M1 Economics and public policy Page 6 / 51
École Polytechnique
ECO554 Microeconomics for Public Policy
This course proposes an introduction to the tools and methods of advanced microeconomic theory used inthe design and evaluation of public policies. This course is targeted towards students who wish to acquirethe basic analytical tools to analyze public policies, choose among different policy options, and evaluate theeffect of public policies. It builds on traditional microeconomic analysis, and extends it into three directions:the measure of the effects of public policies, welfare economics and mechanism and market design. Thecourse will be divided between lectures and exercices and case studies.
Course outline:Measure of the effects of public policies- Advanced demand theory- Compensation and surplus- Contingent evaluationWelfare Economics- Preference aggregation- Welfare measures- Equality and efficiency measuresInformational asymmetries and mechanism design- Mecanism design theory- Clarke-Groves-Vickers mechanisms for the provision of public goods- Market design
References:-A. Mas-Colell, J. Green et M. Whinston Microeconomic Theory, Oxford University Press, 1995.-A. Feldman R. Serrano Welfare Economics and Social Choice Theory, Springer 2005.-J.J. Laffont, D. Martimort The Theory of Incentives: The Principal Agent Model, Princeton University Press,2001.
Course taught in English
Teaching coordinator : Yukio KoriyamaTerm : FallNumber of hours : 36ECTS Credits : 4Last Modification : Thursday 12 July 2012
Master of Science - M1 Economics and public policy Page 7 / 51
École Polytechnique
ECO571A Public Policy and the Law
This course is designed to introduce students to institutions, categories and methods of reasoning, in someof the great legal traditions. It will approach the legal phenomenon primarily from a public policyperspective, exploring the diversity of interactions between public policy and the law. It will first consider lawas a framework and constraint for reforms, dwelling in particular on major contemporary issues inconstitutional law and fundamental rights. The course will then reverse its perspective and introduce to lawas a tool for policy makers, by tackling issues such for example as regulation, codification, contract orevaluation. This course of an introductory nature is recommended only to students who have not been acquainted withlaw at licence level
It will focus, inter alia, on the insights of the « legal origins theory » which inspires the classifications of theworld’s legal systems as established by the World Bank, providing students with the means to construct acomparative critique. From there, it will use this perspective to look at various contemporary legal debates,ranging from the function of adjudication, to the codification issue within the European Union, or again thelegal governance of the global economy.
Suggested reading:Djankov, La Porta, Lopez de Silanes, Schleifer, Schleifer, “The Economic Consequences of Legal Origins”, (excerpts Working Paper, World Bank, 13608 , 2007),A. Schlieffer, “Understanding Regulation”, 11 European Fin. Management 439 (2005)P. Legrand, “European Legal Systems Are Not Converging » 1 I.C.L.Q. 52, 1996G. Teubner, “Legal irritants”, 61 Mod. L R 11, 1998 Alain Supiot, Homo Juridicus, On the Anthropoligal Function of the Law, Verso, 2007
Course taught in English at Science Po
Term : FallNumber of hours : 36ECTS Credits : 4Last Modification : Friday 21 October 2011
Master of Science - M1 Economics and public policy Page 8 / 51
École Polytechnique
ECO571B Political Sciences & Public Policy
Not for the academic year 2012/2013
This course covers major contemporary topics of “quantitative sociology”, a branch of sociology wheretesting theories is a central issue.The main goal of this course is to present key contemporary academic research projects based on newtheories derived from important sociological traditions, comparative data and innovative statistical models.
This course offers an overview of key issues and contemporary developments in comparative politics.Designed for students in economy, it provides the conceptual and theoretical background and themethodological skills for the study of politics in different institutional and cultural settings. One key questionis the extent to which institutions shape politics and policies, and hence economic and social outcomes.Doing so, we review central issues such as democracy, governance, and collective action, especially in thecontext of globalisation. This course also provides an introduction to the behavioral foundations ofcontemporary politics, looking at models of party competition, theories of voting behavior, lobbying. This course is structured into 12 weekly lectures of 2 hours followed by 2 hours of applied works on thetopic in small groups (“conférences”). They consist in a series of key readings for the discipline, oralpresentations of case studies, and replication of results of the literature on Stata.There will be a final exam for the lectures. Additional assignments will be given in “conférences”. The finalexam represents 40 per cent of the final grade.
Course outline:
1. Introduction: political science and politics.2. Comparison: research designs, sources, and methodological issues.3. Rationality, institutions, and culture.4. The modern state.5. Autocracy and democracy.6. Democratic institutions.7. Government and governance.8. Regime and institutional change.9. Elections and electoral systems.10. Social cleavages, political parties, and party systems.11. Political participation.12. Lobbying and state-society relations.
Main textbooks:Caramani, D. (ed.) 2011. Comparative Politics, Oxford University Press.Clark, W.R., M. Golder, S. Nadenichek Golder, 2009, Principles of Comparative Politics, CQPress.Oxford handbooks in political science series, and especially Oxford Handbook of ComparativePolitics, Oxford Handbook of Political Institutions, Oxford Handbook of Political Economy, Oxford Handbookof Public Policy, Oxford Handbook of Political Behavior, Oxford Handbook of Political Methodology.
Additional references will be provided through shared Zotero libraries and an Internet portal.
Course taught in English at Sciences Po
Evaluation mechanism
Master of Science - M1 Economics and public policy Page 9 / 51
École Polytechnique
The final grade will be based on STATA homework and on a final paper.
Term : FallNumber of hours : 36ECTS Credits : 4Last Modification : Monday 24 June 2013
Master of Science - M1 Economics and public policy Page 10 / 51
École Polytechnique
ECO572 International Economics
The objective of this course is to provide students with the basic toolkit in both international trade andinternational macroeconomics. Although the key models are presented in depth, the focus is put on how touse them and interpret their results. A particular attention is paid to the presentation of empirical evidenceand the way theoretical models match the data.
The organization of the course is as follows. On each topic, the course begins with a set of stylized facts.We then study one or two core models that formalize and explain those empirical regularities. The exerciseclass is either devoted to one extension of the models presented in class or to the analysis of an empiricaltest of those models.
Course taught in English
Introduction. Globalization in the data1. Comparative advantage 2. The neo-classical model of international trade3. International trade under imperfect competition 4. Trade policies5. Multinational firms and foreign direct investment6. Intertemporal choice and the balance of payments7. The exchange rate8. Exchange-rate dynamics9. Foreign-exchange crises
RequirementsUndergraduate microeconomics (Eco 431): Firms' behavior under perfect and imperfect competition,optimization.
Evaluation mechanismOne final exam with two exercises (international trade and international macroeconomics). The final scoretakes into account the participation during the exercise classes.
Teaching coordinator : Isabelle MéjeanTerm : FallNumber of hours : 36ECTS Credits : 4Last Modification : Monday 24 June 2013
Master of Science - M1 Economics and public policy Page 11 / 51
École Polytechnique
ECO561 Macroeconomics : business cycles
This course is an introduction to modern macroeconomics. Students are initially equipped with thenecessary tools to solve dynamic problems in economics. These techniques are then applied to address anumber of important issues in macroeconomics, including the analysis of the business cycle. All theseissues are investigated within a common framework which emphasizes the importance of microfoundations,rational expectations and general equilibrium.By the end of the course, students should have a reasonable knowledge of the current state ofmacroeconomics, they should be able to read a large share of the recent academic literature in the fieldand they should be able to address many macroeconomic policy questions.
1.IS-LM, AS-AD, The Phillips Curve2.Methods: Detrending and Dynamic Programming3.Monetary Economics & Policy4.The Ramsey model5.Real Business Cycle Theory6.The New Keynesian Framework7.Asset Pricing8.Search Models of the Labor Market9.Heterogeneity in Macroeconomics
Course taught in English
Teaching coordinator : Jean-Baptiste MichauTerm : FallNumber of hours : 36ECTS Credits : 4Last Modification : Thursday 11 April 2013
Master of Science - M1 Economics and public policy Page 12 / 51
École Polytechnique
ECO562 Econometrics and Public Policy Evaluation
The objective of the course is to introduce students to some of the most fundamental micro-econometrictechniques. Although most of the models/ techniques covered in class have been developpedindependently from the Evaluation literature, they may all be used in conjunction with an objective toevaluate some public policies. The course will emphasize both theory (modeling), and applications. At theend of the course, the student should have accumulated a sufficiently large technical background in orderto understand the most part of the micro-econometric policy evaluation literature. However, more structuralapproaches (based on explicit utility maximization) will not be covered in class, because of time constraints.In practice, there will be 7 sections discussed in class.
The following topics will be covered :Introduction to Estimation: The Method of Maximum LikelihoodBinary and Multinomial Discrete Choice ModelsCensored/Truncated Regressions, and Sample Selection ModelsLinear Panel Data ModelsTreatment Effect ModelsStatic and Dynamic Discrete Choice Panel Data ModelsDuration Data Analysis
References:- Wooldridge, Econometric Analysis of Cross Section and Panel Data, MIT Press, Cambridge, MA., 2002.- Greene, Econometric Analysis, Prentice Hall, 6th Ed., Pearson-Prentice Hall., 2008.- Cameron, Trivedi, Mircroeconometrics : Methods and Applications, Cambridge University Press, NewYork, 2005.
Course taught in English
Teaching coordinator : Christian Belzil, Mathias ANDRETerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Tuesday 13 March 2012
Master of Science - M1 Economics and public policy Page 13 / 51
École Polytechnique
ECO563 Public Economics, Welfare, and Institutions
Description:The course is an introduction, as complete as possible, to the various aspects of modern Public Economics:welfare economics, externalities and public choice theory, political economy. It first recalls the classicaltheory of market failures due to externalities and public goods. This part is illustrated by interventions frompractionnioners about the regulation of transports, of telecomunications, and of the environment. Thecourse also studies the Economics approaches to welfare and justice, from the empirical and the analyticalpoints of view. It then turns to economic theories of Politics and institutions.The course is tought in English.
List of topics:1. Theory of public goods and externalities.2. Management of public monopolies and regulation.3. Environmental regulation.4. Income taxation and redistribution.5. Empirics on welfare and justice: opinions, experiments.6. Economic theories of welfare and justice: Bentham and Arrow7. Equity in practice: Inequality measurement, no-envy.8. Intergenerational concerns.9. Economic theory of democracy.
Main references:A. Mas-Colell, M. Whiston and J. Green, Microeconomic Theory. Oxford University Press;B. Salanié, The Economics of Market Failures, MIT Press.M. Fleurbaey, Théories économique de la justice. Economica;H. Moulin, Cooperative Microeconomics: A Game-theoretic Introduction. Princeton University Press
Course taught in English
Teaching coordinator : Yukio Koriyama, Jeanne HagenbachTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Sunday 20 January 2013
Master of Science - M1 Economics and public policy Page 14 / 51
École Polytechnique
ECO566 Industrial Organization
The exercise of monopoly power: pricing, durables and discrimination. Strategic interaction: competition interms of price, quantity and capacity; market segmentation and strategic positioning. Tacit collusion,investment and innovation, strategic entry barriers.
Course taught in English
Teaching coordinator : Patrick ReyTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Friday 18 January 2013
Master of Science - M1 Economics and public policy Page 15 / 51
École Polytechnique
ECO568 Economics of Information
This course has a strong methodological component. It aims at covering basic materials in the domain ofinformation economics. It provides an introduction to informational problems in economic analysis. Itdevelops basic models of trading under asymmetric information and sketches the main lines of the generalapproach in terms of mechanism design. The interests of such models will be illustrated through a numberof applications: auctions, insurance markets, compensation policies, organizational design, optimalregulation...
The course will build on a reminder of basic game theory applied to economics and on the introduction ofuncertainty and information in decision making. It will then address the issue of competitive equilibriumunder imperfect information and under asymmetric information. This will lead to a presentation of theso-called Principal-Agent model that is central to the analysis of informational asymmetries, in both itsmoral hazard and its screening versions. General Bayesian settings will be presented with the basicimplementation theory and the mechanism design literature. Applications will be provided dealing withpublic economics issues, auctions,… The concept of perfect Bayesian equilibrium will be used to analyzedynamic considerations in contractual relationships, signalling issues and models of informationtransmission.
The course consists in 9 main lectures (1:30 each) followed by two-hour exercise classes in whichexercises will be proposed so as to get familiar with the techniques involved.
Course outline :1.Prolog: Akerlof and Spencea) The Market for Lemons;b) Job Market SignalingExercices
2.Screening under Adverse Selection IEquilibrium à la Rothschild-StiglitzExercices
3.Screening under Adverse Selection IISome Optimal Regulation Theory; Baron and Myerson's ModelExercices
4.Introduction to Principal-Agent Theory under Moral HazardGrossman and Hart's modelExercices
5.Games with Incomplete Information IHarsanyi's Bayesian EquilibriumExercices
6.Introduction to the Theory of AuctionsFirst-price sealed-bid auction. English auction and Vickrey auction. Revenue equivalence.Exercices
7.Games with Incomplete Information IIPerfect Bayesian Equilibrium
Master of Science - M1 Economics and public policy Page 16 / 51
École Polytechnique
Exercices
8.Revelation of Preferences for Public GoodsClarke-Groves MechanismsExercices
References-David Kreps (1990), A Course in Microeconomic Theory, Harvester Wheatsheaf, pub.
-Andreu Mas-Colell, Michael Whinston and Jerry Green, (1996), Microeconomic Theory, Oxford UniversityPress.
-Martin Osborne and Ariel Rubinstein (1994), A Course in Game Theory, MIT Press.
-Robert Gibbons (1992), A Primer in Game Theory, Harvester-Wheatsheaf.
-Bernard Salanié (2005), The Economics of Contracts : A Primer, MIT Press.
Teaching coordinator : Robert Gary-BoboTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Monday 05 November 2012
Master of Science - M1 Economics and public policy Page 17 / 51
École Polytechnique
ECO581A Economic Policy
This course illustrates how economic theory can shed light on public decision-making and provide astructured approach to some of today’s key economic policy discussions, with a focus on France and theEuropean Union.
The reference textbook by Agnès Bénassy-Quéré, Benoît Coeuré, Pierre Jacquet and Jean Pisani-Ferrywas published in French by Editions De Boeck under the title Politique économique (revised edition, April2009, available at Ecole polytechnique and Sciences Po libraries) and in English by Oxford UniversityPress in August 2010.
The course is organized as a seminar and relies heavily on student participation. It is divided into ninefour-hour lessons (see the attached syllabus). Each of them, except the introductory one for practicalreasons, focuses on a particular policy domain and is divided into three parts: 1) an introductory lecturedelivered by the teacher(s) on the topic of the lesson, 2) a reading by a group of students of a landmarktheoretical or empirical paper which may be recent or older but pervasively relevant, and 3) a presentationby a group of students on a current policy issue, put in perspective against its theoretical background.
The rules of the game are the following. There will be groups of three or four, depending on the totalnumber of students. Each group will present a theoretical paper and a policy issue during two differentclasses. In both cases, the oral presentation should last around 30’ and be based on a PowerPoint orequivalent handout. It is recommended that each group provides the necessary number of copies for otherstudents and teachers to take away. All students are expected to participate in the discussions following thepresentations and will be assessed accordingly.
Article presentations. The teachers can provide the articles in case they are not easily available at thelibrary. In their presentation, students are incited to:- introduce the article’s background and rationale: new explanation of already known economic facts,theoretical controversy, access to new empirical data…- explain the author’s goal and methodology: modeling strategy, main assumptions, outline of thedemonstration;- put the article in perspective and discuss with a critical mind the significance and originality of the resultsachieved, the realism of the assumptions, parcimoniousness of the modeling technique, etc.
Policy presentations will by definition be more rooted in empirical and institutional facts, but they shouldnevertheless be problematic and explicitly rely on theoretical arguments: students may explain howeconomic theory and empirical studies have helped shape the policy discussion, or refer to theory toexpress their own judgment, or both. On each proposed topic, students will receive in advance a brief reading list with suggested empiricalsources and references. But this will only be an indication and students are incited to make their ownsearch. Particular attention should be given to the data used in tables and figures: students are stronglyencouraged to produce their own figures rather than cut-and-paste them from the Internet; accordingly, theyshould be able to trace sources and explain the nature and limits of the data.
There will be no final exam. Students will be assessed against their article and policy presentations. Themark will value the thoroughness and accuracy of the handout as well as the conciseness and clarity of thein-class presentation. Proper use of the students’ theoretical knowledge will be particularly valued. Markswill be adjusted depending on participation in classes.
Tentative Programme:
Master of Science - M1 Economics and public policy Page 18 / 51
École Polytechnique
1. Concepts and limits of economic policy2. Fiscal policy3. Monetary policy4. International financial integration and exchange-rate policy5. Tax policy6. Growth policies7. Labour market policies8. Financial stability9. Environment policies
Course taught in English
Teaching coordinator : Benoît CoeuréTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Tuesday 03 July 2012
Master of Science - M1 Economics and public policy Page 19 / 51
École Polytechnique
ECO581B Time Series / Panel Data
This course considers econometric inference from time-series data. A crude outline is as follows. Wediscuss univariate and multivariate linear processes (ARMA, VAR), markov-switching models, andstatistical concepts such as stationarity, ergodicity, and feedback. These tools are used to extend theapplicability of least-squares and maximum-likelihood estimation to deal with dependent data in systems ofequations. We also consider such topics as forecasting, seasonality, autoregressive conditionalheteroskedasticity, spectral analysis, and the Kalman filter. Finally, we look at non-stationary time series(ARIMA) and derive statistical tests for unit roots and cointegration.
Lectures :The main reference text for the course is Time Series Analysis by J.D. Hamilton (1994, Princeton UP).
Slides, class notes, and additional material will be made available.
Lectures complémentaires
A useful complement is Econometrics by F. Hayashi (2000, Princeton UP).
Some other texts that contain treatments of the material covered are (i) Applied Econometric Time Seriesby W. Enders (2009, John Wiley & Sons); and (ii) Time Series: Theory and Methods by P.J. Brockwell andR.A. Davis (2009, Springer).
Discussion that are more specialized to the econometrics of financial time series can be found in (i)Analysis of Financial Time Series by R.S. Tsay (2010, Wiley-Blackwell); and (ii) The Econometrics ofFinancial Markets by J.Y. Campbell, A.W. Loo, and A.C. MacKinlay (1996, Princeton UP).
A technical monograph on the estimation of linear processes is Asymptotic Theory for Econometricians byH. White (2000, Academic Press).
Course taught in English at Sciences Po
RequirementsIntroduction to statistics and econometics at the graduate level. Experience with statistical software.
Term : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Tuesday 25 September 2012
Master of Science - M1 Economics and public policy Page 20 / 51
École Polytechnique
ECO582 Economics and Competition Policy
The course has an applied economics bias: each lecture presents the relevant economic models and ananalysis of prominent court cases heard under the various legal systems (United States, EU and France).
The main topics covered are: relevant market concept, market power and restrictive practices, control ofconcentrations, abuse of dominant position (predatory pricing), vertical restrictions, competition law andregulation.
Course taught in English
Teaching coordinator : Verge Thibaud, David Sevy, Philippe ChonéTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Tuesday 18 December 2012
Master of Science - M1 Economics and public policy Page 21 / 51
École Polytechnique
ECO584 Empirical Methods in Environmental Economics
INTRODUCTION: While economic theory is pertinent to intuitively grasping the underlying dynamics of therelationship between economic systems and the environment, it is the empirical verification of these toolsthat will provide policy makers with more concrete parameters with which to formulate their policies. Thiscourse will provide an overview of the empirical methods commonly used in the field of environmentaleconomics to evaluate valuation of the environment, to deal with the shortcomings of available data, and toaccurately measure relationships and identify their causal nature.
OBJECTIVE: To provide the students with a general overview of the most common methods used inempirical environmental economics. While the theoretical foundations of these methods will be outlined, astrong emphasis will be placed on providing practical implementation through examples and exercises.
SUBJECTS TO BE COVERED:
I - Contingent Valuation: •Measurement of Willingness to Pay•Measurement of Willingness to AcceptII –Regression Analysis: •Least Squares Estimation•Instrumental Variables Estimation•Quasi-Experimental MethodsIII - Experimental Methods•Field Experiments•Laboratory Experiments
Textbooks:I. Bateman and K. Wills (2001). Valuing Environmental Preferences. Oxford University Press. J. Angrist and J. Pischke (2008). Mostly Harmless Econometrics. Princeton University Press. T. Cherry, S. Kroll, J.F. Shogren (2008). Experimental Methods in Environmental Economics. Oxford:Routledge.
Teaching coordinator : Eric StroblTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Friday 17 February 2012
Master of Science - M1 Economics and public policy Page 22 / 51
École Polytechnique
ECO591 Microeconomics and Business Strategies
This option sets out to enable students to put the formal knowledge acquired at the college into practice inthe course of an autonomous, personal experimental project undertaken within a business.
Topics that lend themselves to such a project include, purely by way of indication:competitiveness analysis of a business division;financial performance of an assets portfolio according to different criteria based on businesses’ socialresponsibility;efficacy of particular aspects of regulatory or antitrust (mergers, concentrations, vertical relations, dominantpositions etc.) policies;impact of particular government industrial competitiveness policies (for example, policies to do with climatechange);economic and financial performance study of an investment project or a business division;steering a research and development project either in-house or with external partners;optimisation of a supply chain in a production and distribution system;incorporation of corporate governance-related stakes (value creation, environmental and socialresponsibility etc.) into the management and key business indicators with a view to their use in themanagement cycle.
Teaching coordinator : Marie-Laure AllainTerm : SpringNumber of hours : 480ECTS Credits : 20Last Modification : Tuesday 04 October 2011
Master of Science - M1 Economics and public policy Page 23 / 51
École Polytechnique
ECO592 The Macroeconomics and Political Economy
The macroeconomic and political economy options propose studying that which concerns the principaldomains (for example, the determants of change; nature of unemployment) or certain contemporary whichare faced by national economic policies ( for instance, single currency, German unification, monetary unionadjustments...) or finally problems of international economics: strategies of development, choice of regimechange, international specialisation...
Term : SpringNumber of hours : 480ECTS Credits : 20Last Modification : Thursday 13 September 2012
Master of Science - M1 Economics and public policy Page 24 / 51
École Polytechnique
ECO593 Bank, Finance
The topics of research options in banks and research institutions that are concerned with economic andfinancial studies of a microeconomic nature. These are integrated in the analytical frameworks anddevelopment tools with often concrete and immediate implications.
Internships taking place within banks and financial institutions are often close to microeconomics. Theyconsist in economic analysis or development of tools which are supposed to be of practical use rapidly.These internships must be linked to courses taught within the Economics department and should not beoriented solely to applied mathematics without any economic content. Potential topics are the following:
· Valuation of companies in the context of an Meger & Acquisition deal· Risk analysis of some market or group of counterparties· Strategic analysis of a market· Macroeconomics and banking business· Behavioral analysis of market participants· Etc.
Teaching coordinator : Antoine FrachotTerm : SpringNumber of hours : 480ECTS Credits : 20Last Modification : Tuesday 04 October 2011
Master of Science - M1 Economics and public policy Page 25 / 51
École Polytechnique
Master of Science
Master 1 Economics and Public Policy (EPP)Program Language: English
Program Contents :Period 1 - Fall3 compulsory courses
For the students in Ecole Polytechnique: • ECO552A - Econometrics : Intermediate EconometricsFor the students in Sciences Po: • ECO552B - Econometrics : Statistics and Introductory Econometrics
• ECO553 - Economic Growth • ECO554 - Microeconomics for Public PolicyChoose 2 courses • ECO571A - Public Policy and the Law • ECO571B - Political Sciences & Public Policy • ECO572 - International EconomicsPeriod 2 - Winter3 compulsory courses • ECO561 - Macroeconomics : business cycles • ECO562 - Econometrics and Public Policy Evaluation • ECO563 - Public Economics, Welfare, and Institutions • ECO568 - Economics of InformationChoose 2 courses • ECO566 - Industrial Organization • ECO581A - Economic Policy • ECO581A - Economic Policy • ECO581B - Time Series / Panel Data • ECO582 - Economics and Competition Policy • ECO584 - Empirical Methods in Environmental EconomicsPeriod 3 - SpringInternship research • ECO591 - Microeconomics and Business Strategies • ECO592 - The Macroeconomics and Political Economy • ECO593 - Bank, Finance
Last Modification: Sun 26 May 2013
Master of Science - M1 Economics and public policy Page 26 / 51
École Polytechnique
ECO552A Econometrics : Intermediate Econometrics
This course sets out to introduce students to the main econometrical methods used for that purpose (linearregression, instrumental variables, simultaneous equations, panel data, dichotomous variables and auditsand evaluation methods). Concrete examples (estimates of production functions, wage equations, moneydemand and assessment of employment policies) feature prominently on the course.
Economics is a discipline that, without being an experimental science, has been built up on observation ofthe facts and tests the accuracy of its theoretical concepts against empirical facts. Indeed, the ability toprocess large data sets into meaningful statistics is a much sought-after skill in the professions with asignificant economic, para-economic or financial component.
Syllabus:1. The linear regression model (Ordinary least squares)2. Hypothesis testing in the linear regression model; generalized least squares3. Endogeneity: definition and examples4. Instrumental variables5. The panel linear model with fixed effects6. Qualitative models: logit and probit models7. Other qualitative models: ordered probit , multinomial logit, etc.8. Tobit model: the selection bias9. Evaluation methods
References:- Angrist J. et Pischke J.-S., 2008, Mostly Harmless Econometrics: An Empiricist's Companion. PrincetonUniversity Press.- Cameron A. C. et Trivedi P., 2005, Microeconometrics: Methods And Applications. Cambridge UniversityPress- Greene W. H., 2008, Econometric Analysis. Pearson Education, 6th International Edition.- Wooldridge J. M., 2008, Introductory Econometrics. South-Western, Div of Thomson Learning.
Course taught in English
Teaching coordinator : Francis Kramarz, Michaël VisserTerm : FallNumber of hours : 36ECTS Credits : 4Last Modification : Monday 19 November 2012
Master of Science - M1 Economics and public policy Page 27 / 51
École Polytechnique
ECO552B Econometrics : Statistics and IntroductoryEconometrics
This course serves as an introduction to statistical inference and econometrics at the graduate level. First,basic concepts in probability theory (i.e., random variables, their distributions, and their moments) arereviewed. Next, we move to statistical inference. Methods for point and interval estimation (least-squares,maximum likelihood, and method of moments) are introduced and criteria for evaluating their performance(bias, efficiency, consistency, and various risk measures) are discussed. Procedures to perform hypothesistesting (t-test, F-test, Wald, Likelihood ratio, and Lagrange multiplier) are also developed. Finally,estimation and testing in the linear regression model is studied in detail.
Format pédagogiqueLectures complemented with problem sets.
27, rue Saint-Guillaume 75007 Paris France T/ +33 (0)1 45 49 50 51 - F/ +33 (0)1 42 22 39 64www.sciences-po.frLectures demandéesThe main reference text for the course is Statistical Inference by G.C. Casella and R.L. Berger (2008,Brooks/Cole).Slides, class notes, and additional material will be made available.Lectures complémentairesIt is useful to complement the main reference text with a book that devotes particular attention to estimationand inference in the linear regression model. All of the following econometric texts contain chapters onlinear regression at the appropriate level: Estimation and Inference in Econometrics by R. Davidson andJ.G. MacKinnon (1994, Oxford UP), A Course in Econometrics by A.S. Goldberger (1991, Harvard UP),Econometrics by F. Hayashi (2000, Princeton UP), and An Introduction to Classical Econometric Theory byP.A. Ruud (2000, Oxford UP).A technical compendium on the asymptotic theory behind least-squares estimation is Asymptotic Theory forEconometricians by H. White (2000, Academic Press).Other statistical texts that provide treatments of probability theory and statistical inference at the level of thecourse are Basic Concepts of Probability and Statistics by J.L. Hodges Jr. and E. Lehmann (2004, SIAM)and Testing Statistical Hypotheses by E. Lehmann and J.P. Romano (2005, Springer).
RequirementsFamiliarity with calculus, linear algebra, and elementary statistics and regression analysis is useful. Someexperience with statistical software such as Stata is also helpful but not required.
Evaluation mechanismGrading is based on (i) a final exam at the end of term and (ii) problem sets during term.
Term : FallNumber of hours : 36ECTS Credits : 4Last Modification : Monday 12 March 2012
Master of Science - M1 Economics and public policy Page 28 / 51
École Polytechnique
ECO553 Economic Growth
This course is devoted to the analysis of growth and cycles. The first part presents stylized facts abouteconomic growth in the long term in a historical and an international perspective. Then theoretical andempirical approaches are used to shed light on the industrial revolution of the eighteen and the nineteencenturies and on the economic growth of modern economies. The second part analyzes cycles withapplications to monetary policy and international economics.
Syllabus:The source of economic growthSaving, accumulation of capital and growthTechnological progress and creative destructionGrowth and unemploymentCycle : stylized factsKeynesian cycles and Lucas’ criticReal cycles and optimal fluctuationsInternational cyclesCycles and monetary policy
References:-Aghion, P. and Howitt, P. (1998), Endogenous Growth Theory, MIT Press. -Barro, R. and Sala-I-Martin, X. (2003), Economic Growth, McGraw-Hill Advanced Series in Economics.-T. Cooley and E. Prescott , Chapter 1, Frontiers of Business Cycle Research, Princeton University Press-Hairault, J.O. 1995, Les Fluctuations conjoncturelles, Economica-R. King and S. Rebelo , (2000), Resuscitating Real Business Cycles, Handbook of Macroeconomics.
Course taught in English
Teaching coordinator : Pierre CahucTerm : FallNumber of hours : 36ECTS Credits : 4Last Modification : Friday 07 December 2012
Master of Science - M1 Economics and public policy Page 29 / 51
École Polytechnique
ECO554 Microeconomics for Public Policy
This course proposes an introduction to the tools and methods of advanced microeconomic theory used inthe design and evaluation of public policies. This course is targeted towards students who wish to acquirethe basic analytical tools to analyze public policies, choose among different policy options, and evaluate theeffect of public policies. It builds on traditional microeconomic analysis, and extends it into three directions:the measure of the effects of public policies, welfare economics and mechanism and market design. Thecourse will be divided between lectures and exercices and case studies.
Course outline:Measure of the effects of public policies- Advanced demand theory- Compensation and surplus- Contingent evaluationWelfare Economics- Preference aggregation- Welfare measures- Equality and efficiency measuresInformational asymmetries and mechanism design- Mecanism design theory- Clarke-Groves-Vickers mechanisms for the provision of public goods- Market design
References:-A. Mas-Colell, J. Green et M. Whinston Microeconomic Theory, Oxford University Press, 1995.-A. Feldman R. Serrano Welfare Economics and Social Choice Theory, Springer 2005.-J.J. Laffont, D. Martimort The Theory of Incentives: The Principal Agent Model, Princeton University Press,2001.
Course taught in English
Teaching coordinator : Yukio KoriyamaTerm : FallNumber of hours : 36ECTS Credits : 4Last Modification : Thursday 12 July 2012
Master of Science - M1 Economics and public policy Page 30 / 51
École Polytechnique
ECO571A Public Policy and the Law
This course is designed to introduce students to institutions, categories and methods of reasoning, in someof the great legal traditions. It will approach the legal phenomenon primarily from a public policyperspective, exploring the diversity of interactions between public policy and the law. It will first consider lawas a framework and constraint for reforms, dwelling in particular on major contemporary issues inconstitutional law and fundamental rights. The course will then reverse its perspective and introduce to lawas a tool for policy makers, by tackling issues such for example as regulation, codification, contract orevaluation. This course of an introductory nature is recommended only to students who have not been acquainted withlaw at licence level
It will focus, inter alia, on the insights of the « legal origins theory » which inspires the classifications of theworld’s legal systems as established by the World Bank, providing students with the means to construct acomparative critique. From there, it will use this perspective to look at various contemporary legal debates,ranging from the function of adjudication, to the codification issue within the European Union, or again thelegal governance of the global economy.
Suggested reading:Djankov, La Porta, Lopez de Silanes, Schleifer, Schleifer, “The Economic Consequences of Legal Origins”, (excerpts Working Paper, World Bank, 13608 , 2007),A. Schlieffer, “Understanding Regulation”, 11 European Fin. Management 439 (2005)P. Legrand, “European Legal Systems Are Not Converging » 1 I.C.L.Q. 52, 1996G. Teubner, “Legal irritants”, 61 Mod. L R 11, 1998 Alain Supiot, Homo Juridicus, On the Anthropoligal Function of the Law, Verso, 2007
Course taught in English at Science Po
Term : FallNumber of hours : 36ECTS Credits : 4Last Modification : Friday 21 October 2011
Master of Science - M1 Economics and public policy Page 31 / 51
École Polytechnique
ECO571B Political Sciences & Public Policy
Not for the academic year 2012/2013
This course covers major contemporary topics of “quantitative sociology”, a branch of sociology wheretesting theories is a central issue.The main goal of this course is to present key contemporary academic research projects based on newtheories derived from important sociological traditions, comparative data and innovative statistical models.
This course offers an overview of key issues and contemporary developments in comparative politics.Designed for students in economy, it provides the conceptual and theoretical background and themethodological skills for the study of politics in different institutional and cultural settings. One key questionis the extent to which institutions shape politics and policies, and hence economic and social outcomes.Doing so, we review central issues such as democracy, governance, and collective action, especially in thecontext of globalisation. This course also provides an introduction to the behavioral foundations ofcontemporary politics, looking at models of party competition, theories of voting behavior, lobbying. This course is structured into 12 weekly lectures of 2 hours followed by 2 hours of applied works on thetopic in small groups (“conférences”). They consist in a series of key readings for the discipline, oralpresentations of case studies, and replication of results of the literature on Stata.There will be a final exam for the lectures. Additional assignments will be given in “conférences”. The finalexam represents 40 per cent of the final grade.
Course outline:
1. Introduction: political science and politics.2. Comparison: research designs, sources, and methodological issues.3. Rationality, institutions, and culture.4. The modern state.5. Autocracy and democracy.6. Democratic institutions.7. Government and governance.8. Regime and institutional change.9. Elections and electoral systems.10. Social cleavages, political parties, and party systems.11. Political participation.12. Lobbying and state-society relations.
Main textbooks:Caramani, D. (ed.) 2011. Comparative Politics, Oxford University Press.Clark, W.R., M. Golder, S. Nadenichek Golder, 2009, Principles of Comparative Politics, CQPress.Oxford handbooks in political science series, and especially Oxford Handbook of ComparativePolitics, Oxford Handbook of Political Institutions, Oxford Handbook of Political Economy, Oxford Handbookof Public Policy, Oxford Handbook of Political Behavior, Oxford Handbook of Political Methodology.
Additional references will be provided through shared Zotero libraries and an Internet portal.
Course taught in English at Sciences Po
Evaluation mechanism
Master of Science - M1 Economics and public policy Page 32 / 51
École Polytechnique
The final grade will be based on STATA homework and on a final paper.
Term : FallNumber of hours : 36ECTS Credits : 4Last Modification : Monday 24 June 2013
Master of Science - M1 Economics and public policy Page 33 / 51
École Polytechnique
ECO572 International Economics
The objective of this course is to provide students with the basic toolkit in both international trade andinternational macroeconomics. Although the key models are presented in depth, the focus is put on how touse them and interpret their results. A particular attention is paid to the presentation of empirical evidenceand the way theoretical models match the data.
The organization of the course is as follows. On each topic, the course begins with a set of stylized facts.We then study one or two core models that formalize and explain those empirical regularities. The exerciseclass is either devoted to one extension of the models presented in class or to the analysis of an empiricaltest of those models.
Course taught in English
Introduction. Globalization in the data1. Comparative advantage 2. The neo-classical model of international trade3. International trade under imperfect competition 4. Trade policies5. Multinational firms and foreign direct investment6. Intertemporal choice and the balance of payments7. The exchange rate8. Exchange-rate dynamics9. Foreign-exchange crises
RequirementsUndergraduate microeconomics (Eco 431): Firms' behavior under perfect and imperfect competition,optimization.
Evaluation mechanismOne final exam with two exercises (international trade and international macroeconomics). The final scoretakes into account the participation during the exercise classes.
Teaching coordinator : Isabelle MéjeanTerm : FallNumber of hours : 36ECTS Credits : 4Last Modification : Monday 24 June 2013
Master of Science - M1 Economics and public policy Page 34 / 51
École Polytechnique
ECO561 Macroeconomics : business cycles
This course is an introduction to modern macroeconomics. Students are initially equipped with thenecessary tools to solve dynamic problems in economics. These techniques are then applied to address anumber of important issues in macroeconomics, including the analysis of the business cycle. All theseissues are investigated within a common framework which emphasizes the importance of microfoundations,rational expectations and general equilibrium.By the end of the course, students should have a reasonable knowledge of the current state ofmacroeconomics, they should be able to read a large share of the recent academic literature in the fieldand they should be able to address many macroeconomic policy questions.
1.IS-LM, AS-AD, The Phillips Curve2.Methods: Detrending and Dynamic Programming3.Monetary Economics & Policy4.The Ramsey model5.Real Business Cycle Theory6.The New Keynesian Framework7.Asset Pricing8.Search Models of the Labor Market9.Heterogeneity in Macroeconomics
Course taught in English
Teaching coordinator : Jean-Baptiste MichauTerm : FallNumber of hours : 36ECTS Credits : 4Last Modification : Thursday 11 April 2013
Master of Science - M1 Economics and public policy Page 35 / 51
École Polytechnique
ECO562 Econometrics and Public Policy Evaluation
The objective of the course is to introduce students to some of the most fundamental micro-econometrictechniques. Although most of the models/ techniques covered in class have been developpedindependently from the Evaluation literature, they may all be used in conjunction with an objective toevaluate some public policies. The course will emphasize both theory (modeling), and applications. At theend of the course, the student should have accumulated a sufficiently large technical background in orderto understand the most part of the micro-econometric policy evaluation literature. However, more structuralapproaches (based on explicit utility maximization) will not be covered in class, because of time constraints.In practice, there will be 7 sections discussed in class.
The following topics will be covered :Introduction to Estimation: The Method of Maximum LikelihoodBinary and Multinomial Discrete Choice ModelsCensored/Truncated Regressions, and Sample Selection ModelsLinear Panel Data ModelsTreatment Effect ModelsStatic and Dynamic Discrete Choice Panel Data ModelsDuration Data Analysis
References:- Wooldridge, Econometric Analysis of Cross Section and Panel Data, MIT Press, Cambridge, MA., 2002.- Greene, Econometric Analysis, Prentice Hall, 6th Ed., Pearson-Prentice Hall., 2008.- Cameron, Trivedi, Mircroeconometrics : Methods and Applications, Cambridge University Press, NewYork, 2005.
Course taught in English
Teaching coordinator : Christian Belzil, Mathias ANDRETerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Tuesday 13 March 2012
Master of Science - M1 Economics and public policy Page 36 / 51
École Polytechnique
ECO563 Public Economics, Welfare, and Institutions
Description:The course is an introduction, as complete as possible, to the various aspects of modern Public Economics:welfare economics, externalities and public choice theory, political economy. It first recalls the classicaltheory of market failures due to externalities and public goods. This part is illustrated by interventions frompractionnioners about the regulation of transports, of telecomunications, and of the environment. Thecourse also studies the Economics approaches to welfare and justice, from the empirical and the analyticalpoints of view. It then turns to economic theories of Politics and institutions.The course is tought in English.
List of topics:1. Theory of public goods and externalities.2. Management of public monopolies and regulation.3. Environmental regulation.4. Income taxation and redistribution.5. Empirics on welfare and justice: opinions, experiments.6. Economic theories of welfare and justice: Bentham and Arrow7. Equity in practice: Inequality measurement, no-envy.8. Intergenerational concerns.9. Economic theory of democracy.
Main references:A. Mas-Colell, M. Whiston and J. Green, Microeconomic Theory. Oxford University Press;B. Salanié, The Economics of Market Failures, MIT Press.M. Fleurbaey, Théories économique de la justice. Economica;H. Moulin, Cooperative Microeconomics: A Game-theoretic Introduction. Princeton University Press
Course taught in English
Teaching coordinator : Yukio Koriyama, Jeanne HagenbachTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Sunday 20 January 2013
Master of Science - M1 Economics and public policy Page 37 / 51
École Polytechnique
ECO568 Economics of Information
This course has a strong methodological component. It aims at covering basic materials in the domain ofinformation economics. It provides an introduction to informational problems in economic analysis. Itdevelops basic models of trading under asymmetric information and sketches the main lines of the generalapproach in terms of mechanism design. The interests of such models will be illustrated through a numberof applications: auctions, insurance markets, compensation policies, organizational design, optimalregulation...
The course will build on a reminder of basic game theory applied to economics and on the introduction ofuncertainty and information in decision making. It will then address the issue of competitive equilibriumunder imperfect information and under asymmetric information. This will lead to a presentation of theso-called Principal-Agent model that is central to the analysis of informational asymmetries, in both itsmoral hazard and its screening versions. General Bayesian settings will be presented with the basicimplementation theory and the mechanism design literature. Applications will be provided dealing withpublic economics issues, auctions,… The concept of perfect Bayesian equilibrium will be used to analyzedynamic considerations in contractual relationships, signalling issues and models of informationtransmission.
The course consists in 9 main lectures (1:30 each) followed by two-hour exercise classes in whichexercises will be proposed so as to get familiar with the techniques involved.
Course outline :1.Prolog: Akerlof and Spencea) The Market for Lemons;b) Job Market SignalingExercices
2.Screening under Adverse Selection IEquilibrium à la Rothschild-StiglitzExercices
3.Screening under Adverse Selection IISome Optimal Regulation Theory; Baron and Myerson's ModelExercices
4.Introduction to Principal-Agent Theory under Moral HazardGrossman and Hart's modelExercices
5.Games with Incomplete Information IHarsanyi's Bayesian EquilibriumExercices
6.Introduction to the Theory of AuctionsFirst-price sealed-bid auction. English auction and Vickrey auction. Revenue equivalence.Exercices
7.Games with Incomplete Information IIPerfect Bayesian Equilibrium
Master of Science - M1 Economics and public policy Page 38 / 51
École Polytechnique
Exercices
8.Revelation of Preferences for Public GoodsClarke-Groves MechanismsExercices
References-David Kreps (1990), A Course in Microeconomic Theory, Harvester Wheatsheaf, pub.
-Andreu Mas-Colell, Michael Whinston and Jerry Green, (1996), Microeconomic Theory, Oxford UniversityPress.
-Martin Osborne and Ariel Rubinstein (1994), A Course in Game Theory, MIT Press.
-Robert Gibbons (1992), A Primer in Game Theory, Harvester-Wheatsheaf.
-Bernard Salanié (2005), The Economics of Contracts : A Primer, MIT Press.
Teaching coordinator : Robert Gary-BoboTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Monday 05 November 2012
Master of Science - M1 Economics and public policy Page 39 / 51
École Polytechnique
ECO566 Industrial Organization
The exercise of monopoly power: pricing, durables and discrimination. Strategic interaction: competition interms of price, quantity and capacity; market segmentation and strategic positioning. Tacit collusion,investment and innovation, strategic entry barriers.
Course taught in English
Teaching coordinator : Patrick ReyTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Friday 18 January 2013
Master of Science - M1 Economics and public policy Page 40 / 51
École Polytechnique
ECO581A Economic Policy
This course illustrates how economic theory can shed light on public decision-making and provide astructured approach to some of today’s key economic policy discussions, with a focus on France and theEuropean Union.
The reference textbook by Agnès Bénassy-Quéré, Benoît Coeuré, Pierre Jacquet and Jean Pisani-Ferrywas published in French by Editions De Boeck under the title Politique économique (revised edition, April2009, available at Ecole polytechnique and Sciences Po libraries) and in English by Oxford UniversityPress in August 2010.
The course is organized as a seminar and relies heavily on student participation. It is divided into ninefour-hour lessons (see the attached syllabus). Each of them, except the introductory one for practicalreasons, focuses on a particular policy domain and is divided into three parts: 1) an introductory lecturedelivered by the teacher(s) on the topic of the lesson, 2) a reading by a group of students of a landmarktheoretical or empirical paper which may be recent or older but pervasively relevant, and 3) a presentationby a group of students on a current policy issue, put in perspective against its theoretical background.
The rules of the game are the following. There will be groups of three or four, depending on the totalnumber of students. Each group will present a theoretical paper and a policy issue during two differentclasses. In both cases, the oral presentation should last around 30’ and be based on a PowerPoint orequivalent handout. It is recommended that each group provides the necessary number of copies for otherstudents and teachers to take away. All students are expected to participate in the discussions following thepresentations and will be assessed accordingly.
Article presentations. The teachers can provide the articles in case they are not easily available at thelibrary. In their presentation, students are incited to:- introduce the article’s background and rationale: new explanation of already known economic facts,theoretical controversy, access to new empirical data…- explain the author’s goal and methodology: modeling strategy, main assumptions, outline of thedemonstration;- put the article in perspective and discuss with a critical mind the significance and originality of the resultsachieved, the realism of the assumptions, parcimoniousness of the modeling technique, etc.
Policy presentations will by definition be more rooted in empirical and institutional facts, but they shouldnevertheless be problematic and explicitly rely on theoretical arguments: students may explain howeconomic theory and empirical studies have helped shape the policy discussion, or refer to theory toexpress their own judgment, or both. On each proposed topic, students will receive in advance a brief reading list with suggested empiricalsources and references. But this will only be an indication and students are incited to make their ownsearch. Particular attention should be given to the data used in tables and figures: students are stronglyencouraged to produce their own figures rather than cut-and-paste them from the Internet; accordingly, theyshould be able to trace sources and explain the nature and limits of the data.
There will be no final exam. Students will be assessed against their article and policy presentations. Themark will value the thoroughness and accuracy of the handout as well as the conciseness and clarity of thein-class presentation. Proper use of the students’ theoretical knowledge will be particularly valued. Markswill be adjusted depending on participation in classes.
Tentative Programme:
Master of Science - M1 Economics and public policy Page 41 / 51
École Polytechnique
1. Concepts and limits of economic policy2. Fiscal policy3. Monetary policy4. International financial integration and exchange-rate policy5. Tax policy6. Growth policies7. Labour market policies8. Financial stability9. Environment policies
Course taught in English
Teaching coordinator : Benoît CoeuréTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Tuesday 03 July 2012
Master of Science - M1 Economics and public policy Page 42 / 51
École Polytechnique
ECO581A Economic Policy
This course illustrates how economic theory can shed light on public decision-making and provide astructured approach to some of today’s key economic policy discussions, with a focus on France and theEuropean Union.
The reference textbook by Agnès Bénassy-Quéré, Benoît Coeuré, Pierre Jacquet and Jean Pisani-Ferrywas published in French by Editions De Boeck under the title Politique économique (revised edition, April2009, available at Ecole polytechnique and Sciences Po libraries) and in English by Oxford UniversityPress in August 2010.
The course is organized as a seminar and relies heavily on student participation. It is divided into ninefour-hour lessons (see the attached syllabus). Each of them, except the introductory one for practicalreasons, focuses on a particular policy domain and is divided into three parts: 1) an introductory lecturedelivered by the teacher(s) on the topic of the lesson, 2) a reading by a group of students of a landmarktheoretical or empirical paper which may be recent or older but pervasively relevant, and 3) a presentationby a group of students on a current policy issue, put in perspective against its theoretical background.
The rules of the game are the following. There will be groups of three or four, depending on the totalnumber of students. Each group will present a theoretical paper and a policy issue during two differentclasses. In both cases, the oral presentation should last around 30’ and be based on a PowerPoint orequivalent handout. It is recommended that each group provides the necessary number of copies for otherstudents and teachers to take away. All students are expected to participate in the discussions following thepresentations and will be assessed accordingly.
Article presentations. The teachers can provide the articles in case they are not easily available at thelibrary. In their presentation, students are incited to:- introduce the article’s background and rationale: new explanation of already known economic facts,theoretical controversy, access to new empirical data…- explain the author’s goal and methodology: modeling strategy, main assumptions, outline of thedemonstration;- put the article in perspective and discuss with a critical mind the significance and originality of the resultsachieved, the realism of the assumptions, parcimoniousness of the modeling technique, etc.
Policy presentations will by definition be more rooted in empirical and institutional facts, but they shouldnevertheless be problematic and explicitly rely on theoretical arguments: students may explain howeconomic theory and empirical studies have helped shape the policy discussion, or refer to theory toexpress their own judgment, or both. On each proposed topic, students will receive in advance a brief reading list with suggested empiricalsources and references. But this will only be an indication and students are incited to make their ownsearch. Particular attention should be given to the data used in tables and figures: students are stronglyencouraged to produce their own figures rather than cut-and-paste them from the Internet; accordingly, theyshould be able to trace sources and explain the nature and limits of the data.
There will be no final exam. Students will be assessed against their article and policy presentations. Themark will value the thoroughness and accuracy of the handout as well as the conciseness and clarity of thein-class presentation. Proper use of the students’ theoretical knowledge will be particularly valued. Markswill be adjusted depending on participation in classes.
Tentative Programme:
Master of Science - M1 Economics and public policy Page 43 / 51
École Polytechnique
1. Concepts and limits of economic policy2. Fiscal policy3. Monetary policy4. International financial integration and exchange-rate policy5. Tax policy6. Growth policies7. Labour market policies8. Financial stability9. Environment policies
Course taught in English
Teaching coordinator : Benoît CoeuréTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Tuesday 03 July 2012
Master of Science - M1 Economics and public policy Page 44 / 51
École Polytechnique
ECO581B Time Series / Panel Data
This course considers econometric inference from time-series data. A crude outline is as follows. Wediscuss univariate and multivariate linear processes (ARMA, VAR), markov-switching models, andstatistical concepts such as stationarity, ergodicity, and feedback. These tools are used to extend theapplicability of least-squares and maximum-likelihood estimation to deal with dependent data in systems ofequations. We also consider such topics as forecasting, seasonality, autoregressive conditionalheteroskedasticity, spectral analysis, and the Kalman filter. Finally, we look at non-stationary time series(ARIMA) and derive statistical tests for unit roots and cointegration.
Lectures :The main reference text for the course is Time Series Analysis by J.D. Hamilton (1994, Princeton UP).
Slides, class notes, and additional material will be made available.
Lectures complémentaires
A useful complement is Econometrics by F. Hayashi (2000, Princeton UP).
Some other texts that contain treatments of the material covered are (i) Applied Econometric Time Seriesby W. Enders (2009, John Wiley & Sons); and (ii) Time Series: Theory and Methods by P.J. Brockwell andR.A. Davis (2009, Springer).
Discussion that are more specialized to the econometrics of financial time series can be found in (i)Analysis of Financial Time Series by R.S. Tsay (2010, Wiley-Blackwell); and (ii) The Econometrics ofFinancial Markets by J.Y. Campbell, A.W. Loo, and A.C. MacKinlay (1996, Princeton UP).
A technical monograph on the estimation of linear processes is Asymptotic Theory for Econometricians byH. White (2000, Academic Press).
Course taught in English at Sciences Po
RequirementsIntroduction to statistics and econometics at the graduate level. Experience with statistical software.
Term : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Tuesday 25 September 2012
Master of Science - M1 Economics and public policy Page 45 / 51
École Polytechnique
ECO582 Economics and Competition Policy
The course has an applied economics bias: each lecture presents the relevant economic models and ananalysis of prominent court cases heard under the various legal systems (United States, EU and France).
The main topics covered are: relevant market concept, market power and restrictive practices, control ofconcentrations, abuse of dominant position (predatory pricing), vertical restrictions, competition law andregulation.
Course taught in English
Teaching coordinator : Verge Thibaud, David Sevy, Philippe ChonéTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Tuesday 18 December 2012
Master of Science - M1 Economics and public policy Page 46 / 51
École Polytechnique
ECO584 Empirical Methods in Environmental Economics
INTRODUCTION: While economic theory is pertinent to intuitively grasping the underlying dynamics of therelationship between economic systems and the environment, it is the empirical verification of these toolsthat will provide policy makers with more concrete parameters with which to formulate their policies. Thiscourse will provide an overview of the empirical methods commonly used in the field of environmentaleconomics to evaluate valuation of the environment, to deal with the shortcomings of available data, and toaccurately measure relationships and identify their causal nature.
OBJECTIVE: To provide the students with a general overview of the most common methods used inempirical environmental economics. While the theoretical foundations of these methods will be outlined, astrong emphasis will be placed on providing practical implementation through examples and exercises.
SUBJECTS TO BE COVERED:
I - Contingent Valuation: •Measurement of Willingness to Pay•Measurement of Willingness to AcceptII –Regression Analysis: •Least Squares Estimation•Instrumental Variables Estimation•Quasi-Experimental MethodsIII - Experimental Methods•Field Experiments•Laboratory Experiments
Textbooks:I. Bateman and K. Wills (2001). Valuing Environmental Preferences. Oxford University Press. J. Angrist and J. Pischke (2008). Mostly Harmless Econometrics. Princeton University Press. T. Cherry, S. Kroll, J.F. Shogren (2008). Experimental Methods in Environmental Economics. Oxford:Routledge.
Teaching coordinator : Eric StroblTerm : SpringNumber of hours : 36ECTS Credits : 4Last Modification : Friday 17 February 2012
Master of Science - M1 Economics and public policy Page 47 / 51
École Polytechnique
ECO591 Microeconomics and Business Strategies
This option sets out to enable students to put the formal knowledge acquired at the college into practice inthe course of an autonomous, personal experimental project undertaken within a business.
Topics that lend themselves to such a project include, purely by way of indication:competitiveness analysis of a business division;financial performance of an assets portfolio according to different criteria based on businesses’ socialresponsibility;efficacy of particular aspects of regulatory or antitrust (mergers, concentrations, vertical relations, dominantpositions etc.) policies;impact of particular government industrial competitiveness policies (for example, policies to do with climatechange);economic and financial performance study of an investment project or a business division;steering a research and development project either in-house or with external partners;optimisation of a supply chain in a production and distribution system;incorporation of corporate governance-related stakes (value creation, environmental and socialresponsibility etc.) into the management and key business indicators with a view to their use in themanagement cycle.
Teaching coordinator : Marie-Laure AllainTerm : SpringNumber of hours : 480ECTS Credits : 20Last Modification : Tuesday 04 October 2011
Master of Science - M1 Economics and public policy Page 48 / 51
École Polytechnique
ECO592 The Macroeconomics and Political Economy
The macroeconomic and political economy options propose studying that which concerns the principaldomains (for example, the determants of change; nature of unemployment) or certain contemporary whichare faced by national economic policies ( for instance, single currency, German unification, monetary unionadjustments...) or finally problems of international economics: strategies of development, choice of regimechange, international specialisation...
Term : SpringNumber of hours : 480ECTS Credits : 20Last Modification : Thursday 13 September 2012
Master of Science - M1 Economics and public policy Page 49 / 51
École Polytechnique
ECO593 Bank, Finance
The topics of research options in banks and research institutions that are concerned with economic andfinancial studies of a microeconomic nature. These are integrated in the analytical frameworks anddevelopment tools with often concrete and immediate implications.
Internships taking place within banks and financial institutions are often close to microeconomics. Theyconsist in economic analysis or development of tools which are supposed to be of practical use rapidly.These internships must be linked to courses taught within the Economics department and should not beoriented solely to applied mathematics without any economic content. Potential topics are the following:
· Valuation of companies in the context of an Meger & Acquisition deal· Risk analysis of some market or group of counterparties· Strategic analysis of a market· Macroeconomics and banking business· Behavioral analysis of market participants· Etc.
Teaching coordinator : Antoine FrachotTerm : SpringNumber of hours : 480ECTS Credits : 20Last Modification : Tuesday 04 October 2011
Master of Science - M1 Economics and public policy Page 50 / 51
École Polytechnique
ECO590 Research Internship
Internship projects proposed by the Economics Division at Ecole Polytechnique are mainly reserved forstudents who have attended the courses given in the Majeure d'Economie. These projects give thestudents the opportunity to gain a better understanding of economic and statistical models in therms of boththeorical and applied research.Dependind on what students may wish to investigate and on the nature of topics, internship projets will beoriented towards theoretical developments, true-life pratical applications, or both.In some cases application to internship projects will be restricted to students who have attended specificcourses.Projects are grouped into 3 classes :EE-MI : Corporate Economics and MicroeconomicsEI & PE : International Economics and Economic PolicyB-F : Banking and FinanceMost of the time a same project is developed by a group of 2 students.Internship projects may be located either in France or abroad in companies, banking institutions, researchdepartment, and universities.Project achievementApplication :A list of internship projects and topics is published by the Economics Division Office in end November incollaboration with the Internship General Office. The students are asked to submit an application to theEconomics Division Office, which in turn centralizes and processes all applications.Mid December, decisions are made by the Economics Division and, more specially, by the teachersresponsable for internship management. Final agreement is scheduled before February.Students are also allowed to propose internship projects on their own that are not on the list proposed bythe Economic Division. For the particular case, the project must be submitted for validation to theEconomics Division. Validation may be obtained only if a full description of the projects is provided, showingthat the project belongs to the core objectives of the internship policy of the Economics Division.Internship length :Internship periods stard from the beginning of April and last at least 12 weeks. Presentation and examination :Achievements made in the course of the internship period are examined by a jury composed of at least oneteacher of Ecole Polytechnique (Economics Division). Final grades are given on the basis of an oralpresentation (45 mn) and a written report.
Teaching coordinator : Marie-Laure Allain, Antoine Frachot, Isabelle MéjeanTerm : SpringNumber of hours : 480ECTS Credits : 20Last Modification : Thursday 14 November 2013
Master of Science - M1 Economics and public policy Page 51 / 51