# Master Economics | Economic policy analysis

## RESPONSABLES

## AIM

This learning path aims at training economists able to conduct economic projects and provide economic policy recommendations. The program builds up expertise in areas such as development economics, environmental economics, health economics and macroeconomics. An important emphasis is laid on projects tutored by professionals.

## LINKS WITH RESEARCH

This master’s degree is part of the *Ecole Universitaire de Recherche (EUR) AMSE*, which gathers together almost a hundred researchers from AMU, CNRS, EHESS, and ECM.

The teachers are selected according to their expertise within those entities. The teaching staff is also supplemented with professionals in the sector.

## RECOMMENDED PREREQUISITES

This track is particularly adapted to students who have validated the first year of the master of economics of the AMSE department of the Faculty of Economics and Management at Aix-Marseille University. Access is possible in second year (M2).

## WEB SITE

## PLAQUETTE DE LA FORMATION

## PROFESSIONAL SKILLS

This track enables students to reinforce both technical and writing skills, to develop broad knowledge and attitudes needed to make informed decisions and manage complex economic problems. Fundamental courses aim to develop technical skills to conduct in-depth analysis, while applied sessions enables students to learn how to launch projects and manipulate econometric software. An important emphasis is laid on projects tutored by scholars and professionals.

Main professional skills targeted at the end of the second year :

- To conduct economic projects in areas such environment economics, health economics, development economics and macroeconomics.
- To tackle economic problems by first identifying the specificities of private and public institutions and to bring an expertise in economic analysis and/or statistics.
- To write synthetical notes in French and in English and to expose them clearly in front of a knowledgeable audience and/or a jury.

## INTERNSHIPS AND SUPERVISED PROJECTS

At the end of the year, the students go through an internship and write a master’s internship report. The objective of the internship is to prove their ability to apply their acquired conceptual tools to questions emerging from the professional world. The student must therefore identify the question, implement the tools, and be able to communicate the results to both a professional and an academic audience. The internship is tutored by a scholar and an internship director (a member of the business). The report is defended in front of a jury comprised of the academic advisor and the internship director at a minimum.

## PLAQUETTE DE LA FORMATION

## EVALUATION AND EXAMS

Each course is assessed by written exams and/or the making of a portfolio presented during an oral defense. Because the track aims at providing the student with quality analysis and a solid presentation of the results orally or through the written word, skills are also assessed by active participation of the student during classes (reverse pedagogy for instance). In order to limit the number of projects each student will have to put together, teachers propose transversal projects when it is possible.

### Track APE (OPPT) (120 ECTS)

### M1 Economics (AN) (60 ECTS)

### S1 M1 ECO (SE) (30 ECTS)

### Microeconomics I and II (6 ECTS)

### Microeconomics I

## CONTENT

The objective of this course is to provide students with the foundations of economic theory. The course covers the consumption and production theory and is textbook based. The difficulty and coverage compare to those of the main departments of economics worldwide.

__Course outline :__

The course is textbook based. Topic list : Technology, Profit Maximization, Profit Function, Cost minimization, Cost Function, Duality, Utility Maximization, Choice, Demand.

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Microeconomics II

## CONTENT

The objective of this course is to provide students with the foundations of economic theory. The course covers the consumption and production theory and is textbook based. The difficulty and coverage compare to those of the main departments of economics worldwide.

**Course outline :**

The course is textbook based. Topics list : Exchange, Time, Equilibrium Analysis, Welfare.

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Macroeconomics I and II (6 ECTS)

### Macroeconomics I

## CONTENT

The objective of this course is to provide students with a framework for thinking about the fundamental questions in international macroeconomics. We will focus on current account imbalances, capital mobility across countries, and the role of fiscal policy in an open economy. Most topics will be approached from both theoretical and empirical points of view.

**Outline**

• Foundations of intertemporal trade

• Derivation of the Current Account

• Transmission of Shocks Across Countries

• Applications and Puzzles

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Macroeconomics II

## CONTENT

Learn the basic models with microeconomic foundations used in modern macroeconomics. Be able to do dynamic analysis. Understand the concept of dynamic efficiency and the role of public expenditures.

**Course outline :**

**1. Introduction with reminders on the Solow model**

**2. The Ramsey model**

2.1. The framework

2.2. Existence and features of the steady state

2.3. Dynamic analysis

2.4. Extension : public spending

**3. The overlapping generations model**

3.1. The model with capital

3.2. Intertemporal equilibrium, steady states and dynamics

3.3. Optimality

3.4. Extensions : public spending ; rational bubbles

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Econometrics I and II (6 ECTS)

### Econometrics I: linear model

## CONTENT

**Provide students with :**

- the basics of panel data econometrics (fixed effects models, error components model)
- the identification of endogeneity problems in econometric models and their treatment (instrumental variables, GMM, tests)

**Course outline :**

1. Introduction to panel data and panel data models

2. The fixed effects model

- Specification of the model
- Estimation of the model : the Within / LSDV estimator.
- Testing the absence of unobserved heterogeneity.

3. The error components model

- Specification of the model
- Estimation of the model : the GLS / FGLS estimators.
- Testing the absence of unobserved heterogeneity.
- Testing the absence of correlation of the effects : the Hausman test

4. Endogeneity issues

- Causes of endogeneity in econometric models : measurement errors, dynamic models, unobserved heterogeneity, etc.
- The instrumental variables estimator
- The GMM estimator
- Looking for instruments (the time-series case, the cross-section case, the panel data case).
- Testing the validity of instruments
- Testing the exogeneity of regressors

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Econometrics II: non linear model

## CONTENT

Provide students with the basics of the econometrics of non linear models for binary, multinomial, ordered and count dependent variables as well as models for censored and truncated variables.

**Course outline :**

1. Introduction to non-linear models in econometrics and a brief reminder about the maximum likelihood principle.

2. Models for binary dependent variables.

- The linear probability model.
- The Logit model.
- The Probit model.

3. Models for multinomial and ordered dependent variables.

4. Models for count data.

5. Models for truncated and censored variables.

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Labor economics - Risk and incentives (6 ECTS)

### Labor economics

## CONTENT

The objective of this course is to provide students with the necessary analytical tools to be able to study the consequences of different institutions, human capital formation, discrimination and wage bargaining on the labor market.

**Course outline :**

Introductory Chapter :

- Presentation
- Objectives
- Evaluation
- Labor market Institutions and course outline

Chapter 1 : « Labor Supply and Labor Demand » :

- Key definitions
- Labor Supply
- Labor Demand
- Equilibrium

Chapter 2. « Minimun wage »

- Facts
- Classical analysis
- The monopsony case
- Dual labor markets

Chapter 3 : « Mandatory contributions and social benefits »

- Facts
- Classical analysis
- Accounting for wage rigidities

Chapter 4. « Labor Unions » :

- Facts : unions, collective bargaining, union density
- The objective of labor unions
- Models of collective bargaining
- Model of strikes
- Empirical evidence and policy issues

Chapter 5. « Discrimination » :

- Facts : gender and ethnic wage and employment gaps
- Economic theories on discrimination
- Measuring wage discrimination
- Empirical results in the literature and policy issues

Chapter 6. « Education and human capital formation » :

- Facts
- The theory of human capital
- Education as a signaling device
- Identifying the causal relation between education and income
- Returns to education : private vs social returns

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Risk and incentives

## CONTENT

The main objective of this course is to provide the students with a theoretical synthetic framework so that they can face the difficulties of the study of economic decisions under uncertainty. Two main general topics will be dealt with : (1) the theory of decision under uncertainty, and (2) the moral hazard issues between several economic agents.

**Course outline :**

Chapter 1 : Risk, uncertainty and strategies

- Introduction of the main concepts (risk, uncertainty, probability, moral hazard, adverse selection)
- Probabilistic framework (space of states, random variables)
- Numerical decision criteria (preferences, representation by a numerical criteria)
- Game theory, Principal-Agent model

Chapter 2 : Expected Utility

- The virtues of the expected utility (Saint-Petersburg paradox)
- The axiomatics of the expected utility (objective and subjective expected utility)
- The limits of the expected utility (Allais paradox, Ellsberg paradox)
- Generalisations of the expected utility (rank-dependent expected utility, Choquet expected utility)

Chapter 3 : Risk Aversion and Risk Measures

- Qualitative approach (certainty equivalent, risk premium, risk attitude)
- Quantitative approach (local measures of risk aversion)
- Stochastic dominance (first and second order)

Chapter 4 : Introduction to moral hazard issues

- Risk sharing and sharecropping contracts
- Credit with risk aversion of the borrower

Chapter 5 : Other applications

- Risky saving
- Application of the expected utility to static portfolio choice

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Methodology I (6 ECTS)

### Software for economists I

## CONTENT

Provide students with the basics of the statistical and econometric treatment of data using SAS, from the statistical description of the sample, the detection of outliers to the implementation of estimation techniques for linear and non-linear models.

**Course outline :**

1. Introduction to SAS : importing and managing data – proc import, proc contents, proc format, proc sort, proc surveyselect and introduction to SAS macro functions.

2. Describing the data : descriptive statistics with SAS – proc means, proc univariate, proc freq, proc tabulate, proc gplot.

3. Estimating and testing linear models : proc reg, proc glm, proc model, proc panel.

4. Estimating and testing non linear models : proc logistic, proc probit, proc model, proc genmod, proc nlmixed.

## VOLUME OF TEACHINGS

- Tutorials:
**24**hours

### Mathematics for economists

## CONTENT

The course intends to deepen the understanding of optimization theory with a geometric approach, and to introduce in a second part the study of dynamical systems.

__Course outline__

**I. Optimization with mixed constraints** a. Tangent cone and KKT conditions b. Mixed constraints problem c. Constraints qualification conditions d. Convex problems e. Saddle point and duality

II. **Dynamical systems** a. Introduction b. Systems of linear equations

- Constant coefficient : resolution, exponantial of matrices
- Dynamic of the solutions : steady state, stability, planar systems
- nonhomogeneous systems c. Systems of nonlinear differential equations
- Existence and uniqueness theorem
- Linearized system, Hartman-Grobman theorem

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Elective course, choose one among two

### Refresher course in economics (0 ECTS)

## CONTENT

For students coming from other fields than economics : quick reminder about the fundamentals of Economics : utility and profit maximization, optimization, markets, equilibrium

**Course outline :**

1. Principles and key concepts of Economics

2. Foundations of Microeconomics : consumer decision and utility maximization

3. Foundations of Microeconomics : producer profit maximization and market equilibrium under perfect competition

## VOLUME OF TEACHINGS

- Lectures:
**6**hours

### Refresher course in mathematics and statistics (0 ECTS)

## CONTENT

For students who want to improve their math level : reminder about prerequisites for the Mathematics classes and basic notions of probability and statistics.

__Course outline :__

1. Linear algebra

2. Analysis and optimization

3. Matrix diagonalization

4. Ordinary differential equations of order 1

5. Basic notions of probability and statistics

## VOLUME OF TEACHINGS

- Lectures:
**6**hours

### S2 M1 ECO (SE) (30 ECTS)

### Microeconomics III and IV (6 ECTS)

### Microeconomics III - Game theory

## CONTENT

Introducing the basic concepts of Game Theory.

**Course outline :**

1. Complete information games (normal form, examples, analysis)

2. Mixed extension (lotteries, expected gain, mixed-strategy equilibrium)

3. Games with continuous actions (externalities,imperfect competition)

4. Incomplete information games (extensive form, subgame perfection)

5. Additional examples.

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Microeconomics IV - Public economics

## CONTENT

The objective of this course is to study the role of state in the economy. It is designed to provide students with a broad overview of issues investigated in public economics. We will review the rational foundations of public intervention and explore some of the tools used by government to act : taxes and transfers, the provision of public goods, or the design of welfare schemes. Most topics will be approached from both theoretical and empirical points of view.

__Course outline :__

**Lecture 1 – Introduction to public economics**

- Foundations of public intervention – Normative and positive public economics – Some numbers about public intervention – Empirical methods for public economics

**Lecture 2 – Social choice and social welfare**

- Axiomatic approach to social choice – Social welfare functions

**Lecture 3 – Public goods and externalities**

- Public goods – Externalities

**Lecture 4 – Taxation of commodities**

- Tax incidence – Optimal commodity taxation

**Lecture 5 – Taxation of labor**

- Optimal labor taxation – Some empirics around labor taxation

**Lecture 6 – Taxation of capital**

- Taxes in an intertemporal framework – Optimal capital income taxation – Taxation of inheritances

**Lecture 7 – Social insurance**

- Unemployment insurance and workers’ compensation – Disability insurance – Health insurance

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Macroeconomics III and IV (6 ECTS)

### Macroeconomics III

## CONTENT

The aim of the course is to present advanced macroeconomic topics related to the analysis of aggregate consumption, aggregate investment and modern business cycle analysis with the Real Business Cycle model.

**Course outline :**

**Chap. I : Consumption theory**

1. Consumption over the life cycle : the life-cycle/permanent income models

2. Introducing uncertainty – The random walk hypothesis

3. Market imperfections : the role of liquidity constraints

4. Extensions : risk aversion, precautionary savings

**Chap. 2 : Investment theory**

1. The neoclassical model of capital demand

2. Investment with and without capital adjustment costs : Q-theory models

3. Role of shocks : real shocks, news shocks, noise shocks

**Chap. 3 : Real Business Cycles**

1. Measuring business cycles : trend-cycle decompositions and stylized facts

2. The canonical RBC model

3. Evaluation of the model

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Macroeconomics IV

## CONTENT

This course follows Macroeconomics II and it goes deeper in the description of micro-founded models by introducing market frictions into the RBC model. The DSGE-New Keynesian model which includes nominal rigidity is a natural extension of the RBC model to analyse monetary policy / fiscal policy. Although this course is mainly theoretical, lectures will be motivated by stylized facts and the empirical performance of business cycle models will be discussed.

**Course outline :**

**Chapter 1 : Nominal rigidities** (1) Introducing money in RBC model (2) Monopolistic competition (3) Price rigidity (4) Exercises

**Chapter 2 : Monetary and Fiscal policy** (1) Monetary policy analysis (2) Fiscal policy analysis (3) New topics in macroeconomics (ZLB, forward guidance…)

(4) Exercises

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Methodology II (10 ECTS)

### Time series

## CONTENT

This course develops the basic theoretical tools for the analysis and estimation of univariate time series models. In particular, it discusses the concepts of stationarity and non-tationarity, unit-root tests, and exposes the techniques for estimating, forecasting and testing ARMA models using practical examples. Finally, it presents some non-linear models for conditional mean and variance.

**Course outline :**

• Brief Review of Statistics and Probability Concepts (pre-requisites)

• Stochastic processes and stationarity

• Classical stationary processes : AR, MA, ARMA

• Estimations techniques for the classical processes

• Forecasting methods for ARMA(p,q) processes

• White noise tests and stability tests

• Optimal choice of orders and Adequacy of parameters

• Univariate Non-Stationary processes and cointegration

• Modelling Nonlinearity of the conditional expectation

• Volatility modelling for univariate processes

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Software for economists II

## CONTENT

The objective of this course is twofold. Firstly, to study how to use and manipulate databases with Stata and secondly, to perform empirical analysis in relation with the concepts learned in the time series and econometric methods of evaluation classes. After a short introduction to Stata, the course will be divided into tasks-oriented sessions (with mini-projects and exercises) during which the students will perform empirical analysis using databases such as the World Values Survey, the French Labor Force Survey, the National Supported Work data, etc.

**Course outline :**

Lecture 1 : Introduction to Stata and database manipulation

Why using Stata – What Stata looks like – Importing and reading data into Stata – Examining the data – Saving the dataset – Keeping track of things – Organizing datasets – Creating new variables – Panel data manipulation

Lecture 2 : Graphs and linear regressions

Histograms – Two-dimensional graphs – Linear regressions – Post-estimation – Extracting results – Hypothesis testing – Interaction terms – Non-linearity – Fixed effects

Lecture 3 : Endogeneity and public policies econometrics

Randomized control trials – Difference-in-differences – Validity checks

Lecture 4 : Time series

Stationary and non-stationary processes

## VOLUME OF TEACHINGS

- Tutorials:
**24**hours

### Mathematics for finance

## CONTENT

**Objectives :**

Introducing elementary tools to analyse discrete and continuous-time random processes.

**Roadmap :**

1. Markov chains

1.1. Introductory Example : random walks

1.2. Markov chains on a finite state space

1.3. Markov chains on countable state spaces

1.3.1. States classification

1.3.2. Asymptotic results

2. Markovian processes in continuous time

2.1. Poisson processes

2.2. Continuous-time Markov processes

2.3. Queueing theory

3. Discrete-time random processes

3.1. Conditional expectation

3.2. Martingales

3.3. Stopping time

3.4. Convergence theorems

3.5. Applications

4. Introduction to continuous-time stochastic processes : Brownian motion

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Evaluation by econometric methods

## CONTENT

The objective of the course is to offer M1 students with an overview of the main empirical methods used for the evaluation of public policies. We will study key articles taken from various applied economics literature (health, education or activive labor policies). Practical case studies on STATA will be offered all along. We will point out advantages and limits of each method as well as guide in the selection of the appropriate method.

**Course outline :**

Introduction

1. Why evaluate ? What do we evaluate ? What is the objective ?

2. Potential outcome framework

3. Treatment effects and counterfactuals

4. Selection bias

Chapter 1 : Randomized experiments

1. Random assignment

2. Underlying assumptions

3. Study of 2 empirical papers using the method

4. Randomized experiments in practice

Running example : exercise on National Supported Work (NSW) data

Chapter 2 : Natural experiment : Difference-in-difference method

1. Model and underlying assumptions

2. Study of 2 empirical papers using the method

3. Extensions

4. D-in-D in practice

Running example : exercise on National Supported Work (NSW) data

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Elective teaching unit, choose 2 among 3 (8 ECTS)

### Project management - Health and environmental economics (4 ECTS)

### Project management

## CONTENT

Designing and managing development aid projects according to international standards.

**Course outline :**

The students will learn and practice how to build a development program.

## VOLUME OF TEACHINGS

- Lectures:
**18**hours

### Health and environmental economics

## CONTENT

The goal of this course is to bring together health and environmental economics as two narrow fields within the discipline of economics. This shall be done by identifying the interactions and intersections between health and environmental issues, describing the main economic properties that health and environment do have in common (market failure, externalities, government involvements…). This shall be followed by delineating the unique features of health and environment that make of them two distinct topics of study. Following this line of reasoning, the course shall, then, present two self-contained parts devoted to health economics and environmental economics. Each part shall present the workhorse analytical concepts and methods used by economists to explore specific issues relating to the two subfields. The course shall emphasize the use of economic evidence to identify priority issues and the most effective policies for health and environment. Examples and experiences of the kinds of topics that are addressed shall be provided all through the course.

**Course outline :**

Part I (4 hours) Overview : The links between health, environment and the economy

• Economic properties of health and environment

- What distinguishes “health goods” from “environmental goods” ?
- Typology of goods : Pure vs. impure public goods, private vs. publicly-provided private good, global vs. local public goods.

• The economic valuation approach :

- The theory of externalities
- Welfarism vs. extra-welfarism analysis
- Cost-benefit analysis, cost-effectiveness analysis, cost-utility analysis.
- Revealed vs. stated-preferences methods

• Government intervention and regulations

- Why do governments provide goods that are not pure public goods ? The case of health care services.
- What are the special characteristics and challenges of the “global public goods” ? The case of global climate change
- Rationing devices for publicly-provided goods (User charges, uniform provision, queuing).
- Efficiency conditions for public and pure public goods : Collective demand curve and provision of public goods.

Part II (7 hours) : Economics of Health and Health Care

• Overview : Health economics as a field of inquiry

• Health care market structure, conduct and performance :

- Do the law of supply and demand apply to health and health care ?
- What makes health and health care different ?
- Demand for health and health care : Health behavior
- Supply of health care : Production, provision and costs of health care.
- Health insurance markets : Public vs. private health insurance schemes, asymmetric information and agency, moral hazard and adverse selection.

• Reforming health care : Goals of reform, cost containment, efficiency and equity, extending insurance coverage, costs of universal coverage.

Part III (7 hours) : Economics of the Environment

• Overview : Economics and Environment :

- A framework of analysis, environmental microeconomics and macroeconomics.
- The environment as a public good.
- The global commons

• Ecological Economics and the Economic analysis of Environmental Issues :

- Valuing the environment, accounting for environmental costs, internalizing environmental costs, optimal pollution, the Coase theorem.
- Environmentally-adjusted national income accounts, the Genuine progress indicator, the better life index, environmental assets accounts.

• Environmental Health Policy : Impacts and Policy Responses :

- Measuring the economic cost of environmental impacts on health.
- Economic analysis and assessments of the performance of alternative policies in areas such as climate change, outdoor air pollution, water and sanitation.

## VOLUME OF TEACHINGS

- Lectures:
**18**hours

### Introduction to corporate finance - Financial econometrics (4 ECTS)

### Introduction to corporate finance

### Financial econometrics

## CONTENT

1. Analyzing the properties of financial time series : application to French stock markets

The data consists of the stocks of the French CAC40 on a daily basis since 1980. Data are provided in excel format and need to be download to GRETL. Different companies are used as examples.

- Computing returns and historical volatility and analyzing their graphs (mean, variance, skewness and kurtosis, quantiles, min and max, autocorrelation)
- Analyzing the distributions of returns : non-parametric approaches (histograms and CDF based on kernels ; normality tests : QQ plot, Shapiro-Wilkinson, Doornik-Hansen, Jarque-Bera, etc.)
- Informal presentation of stable distributions : index of stability, skewness parameter, scale parameter, location parameter
- Example of parametrization of a stable distribution : the regression analysis of power law distributions.

2. Regression analysis of financial data

2.1.Evaluating the performance of a money manager : CAPM model

The data consist of the S&P 500 and some of its components (General Electric, Ford, Microsoft, ORACLE) and the 3-month Treasury bill).

- Estimate of the Betas using OLS and GLS
- Test of the CAPM using a two-pass regression
- The Jensen measure to evaluate manager performance.

2.2. Modellling the term structure of interest rates

The data consist of the Government zero-coupon bond yield taken at a daily frequency from 1990 to 2017 with several maturities : 6 months, 1 year, 2 years, 4, years, 4 years, 5 years, 7 years and 10 years.

- Analyzing some basic stylized facts of government bond yields (graphs of term to maturity, statistical properties, normality tets, correlation matrix, etc…).
- Recall on asset pricing, Duffie-Kan affine models and the decomposition of the yield curve.
- Decomposition of the tield curve using the Diebold’s regression approach : Level, slope and curvature curves.
- Factor models : a basic presentation of Kalman filter methodology and applications to the yield curve.

3.Some benchmark models for forecasting and trading models

The data consists of US/euro, US/Japan, US/UK exchange rate (daily) from 1999 and 1977 to 2017.

3.1.Models of naïve and MACD (moving average) strategies

3.2.ARMA models (identification via ACF and PACF, estimation, residual tests and forecasts)

3.3.Dectecting long-range dependence structure : an introduction to ARFIMA models

3.4.Introduction to stochastic volatility models : Harvey models and ARCH-GARCH models (tests and estimation).

## VOLUME OF TEACHINGS

- Lectures:
**18**hours

### Software for economists III - International trade (4 ECTS)

### Software for economists III

## CONTENT

This teaching unit aims at providing the fundamental basis of the use of R software (or the RStudio IDE) and R programming. The courses will be illustrated with exercises using the statistical environment R (http://www.r-project.org/) which is free, open-source free and multiplatform, or via the RStudio IDE. The organization of the course will make progressive the acquisition of the knowledge and the mastery of the R statistical tool. It aims to make the student more autonomous when faced to classical problem of statistical modelling or data analysis, which can be found in the fields of economics.

**Course outline :**

- Introduction (history).
- Basic handling (data management in R).
- Creating R functions.
- Loops, tests, vectorization.
- R Graphics.
- Application to modelling (regression/classification).

## VOLUME OF TEACHINGS

- Tutorials:
**18**hours

### International trade

## CONTENT

The aim of this course is to provide students the analytical tools that are essential to understand the causes and consequences of international trade. We will focus on some key questions as why nations trade, what they trade and who gains (or not) from trade. We will then analyse the reasons for countries to limit or regulate the exchange of goods and study the effects of such policies on development and inequality. We will also tackle some aspects of the globalization process like international norms, labor standards, firms’ organization, etc. We will heavily rely on formal economic modelling to help us understand issues of international trade.

**Course outline :**

1. Introduction – Basic facts

2. The Ricardian model

3. The Specific Factors model

4. The Hecksher-Ohlin Model

5. Trade theory with firm-level heterogeneity

## VOLUME OF TEACHINGS

- Lectures:
**18**hours

### M2 PT APE (AN) (60 ECTS)

### S3 M2 APE (SE) (30 ECTS)

### Methodology (6 ECTS)

### Writing and oral communication training

## CONTENT

This course aims to develop / perfect the writing skills of students and their communication skills in both English and French. This teaching is very interactive by nature, where the objective is :

- to make individual oral presentations on various topics in front of the rest of the group,
- to write notes of synthesis allowing him to support his editorial capacities.

At the end of this course, the student will naturally build a structured and convincing discussion in front of an informed public.

**Detailed course plan :**

1st part : Writing expression

1. How to write with simple and complex sentences and / or text rewriting workshop,

2. Being able to synthesize with reduction text exercise (from 7000 signs to 2000-500 signs) and / or writing summaries for different publics and / or principles of writing of synthesis

2nd part : Oral expression

1. Principles of oral expression and construction of slides

2. Short presentation workshop with and without support

3. Contradictory presentation workshop in groups

### Project management

## CONTENT

This course aims at training students to conceive development projects. It is based on the study case of a real PCM process

**Detailed course plan :**

Session 1 : PCM ; Presentation of the study case : applicant NGO, field partners, guidelines, grant application form…

Session 2 : Participation to the identification process of a real development project : from the focus group to the problem tree co construction

Sessions 3 and 4 : Participation to the formulation process of a real development project : from the objective tree to the logical framework

Sessions 5 and 6 : Participation to the budgeting process of a real development project : from the intervention logic to the concept note and figures

Session 7 : Evaluation of the project

## VOLUME OF TEACHINGS

- Tutorials:
**5**hours

### Decision-making support: quantitative methods (6 ECTS)

### Quantitative tools in economics

## CONTENT

The objective is to introduce various tools used to build economic analysis, and decision-making. Two main approaches are introduced : Cost-Benefit Analysis and simulation models. The main principles of each method will be discussed, following the objective that students will be able to implement them in their job.

**Course outline :**

Part I : Cost-Benefit Analysis

Chapter 1 : Introducing CBA

Chapter 2 : Valuing benefits and costs in primary markets

Chapter 3 : Valuing secondary markets

Chapter 4 : Benefits and costs in future time periods

Chapter 5 : Dealing with uncertainty, expected values, sensitivity analysis, and the value of information

Chapter 6 : Shadow prices from secondary sources

Partie II : On the energy scenarios : How to produce them ? To use them ? What are their limits ?

Chapter 1 : Introduction on prospective and scenarios methods

Chapter 2 : The energy transition in France

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Public policies econometrics

## CONTENT

The maib objective of this course is to provide the with a theoretical synthetic framework so that they can face the difficulties of the study of economic decisions under uncertainty. Two main general topics will be dealt with : (1) the theory of decision under uncertainty, and (2) the moral hazard issues between several economic agents.

**Course outline :**

Chapter 1 : Risk, uncertainty and strategies

- Introduction of the main concepts (risk, uncertainty, probability, moral hazard, adverse selection)
- Probabilistic framework (space of states, random variables)
- Numerical decision criteria (preferences, representation by a numerical criteria)
- Game theory, Principal-Agent model

Chapter 2 : Expected Utility

- The virtues of the expected utility (Saint-Petersburg paradox)
- The axiomatics of the expected utility (objective and subjective expected utility)
- The limits of the expected utility (Allais paradox, Ellsberg paradox)
- Generalisations of the expected utility (rank-dependent expected utility, Choquet expected utility)

Chapter 3 : Risk Aversion and Risk Measures

- Qualitative approach (certainty equivalent, risk premium, risk attitude)
- Quantitative approach (local measures of risk aversion)
- Stochastic dominance (first and second order)

Chapter 4 : Introduction to moral hazard issues

- Risk sharing and sharecropping contracts
- Credit with risk aversion of the borrower

Chapter 5 : Other applications

- Risky saving
- Application of the expected utility to static portfolio choice

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Topics in contemporary economics (9 ECTS)

### Applied economics issues

## CONTENT

The objective of the course is to train students to think as economists. To this end, the course choses to focus on different topics of a specific developing region, the middle east and north African region. Around specific concerns in the Mediterranean region, we will develop student’s critical thinking skills and allow them to analyse information on a given subject or recent events (eg. Arab spring, women empowerment, etc.). The topics are of interest to many but should be seen as tools to serves the purpose of the intellectual exercise of studying a phenomenon using economic thinking. This course will provide students with a general knowledge of advanced economics while using underlying theoretical concepts.

Course outline :

Introduction – Main issues in the Mediterranean countries

Part 1 : Resources allocation in MENA

1.2 Openness to trade and Development

1.3 Private sector : What’s holding back in the region ?

1.4 Women entrepreneurship and empowerment

Part 2 : The Arab spring

2.1 Facts and empirics on institutional change and development

2.2 Benchmark theories : democratization games

2.3 Understandings the Arab spring

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Transitions and economic policies

## CONTENT

The objective of this course is to analyze the current changes (economic uncertainty, political transition, climate change…) in order to understand the issues and assess the economic impacts. This involves analyzing how economic policies adapt and respond to these changes.

**Course overview :**

Part 1 : Economic policy analysis

Short to medium-term impact of economic policies (fiscal, monetary and structural ones) and economic gains or losses which could be observed from economic policy coordination among developed countries. The economic gains or losses from being part of a monetary union (such as the Euro Area) are analyzed. The use of an original software (MacSim2) to simulate economic policies in the main developed countries illustrates these gains or losses.

Exercise 1 : The impacts of several types of macroeconomic policies

Exercise 2 : The impact of a coordination of recovery plans and public finance consolidation programs

Exercise 3 : The impact of fiscal policy coordination

Exercise 4 : The impact of protectionist policies

Exercise 5 : The reform of the retirement pension

Exercise 6 : Structural reform coordination

Exercise 7 : Changes in the financing of the social protection costs : fiscal devaluation ?

Exercise 8 : The interest of a Monetary Union in the context of demand or supply macroeconomic policies

Exercice 9 : Migrant shock in Germany

Exercice 10 : The Brexit

Part 2 : Low carbon transition and the economic impacts of climate change.

1. Climato-economic models and international climate negotiations : enemies or allies ? Approach from a historical point of view by putting into perspective the evolution of climate negotiations with the development of economic models.

2. The climate-stability compromise : an introduction to the GEMMES research program. Description of the GEMMES project of the AFD which aims on the one hand to contribute to the international debates on climate policies such as the price of carbon, the green jobs or the role of the public sector and on the other hand to accompany the partner countries in the specification and implementation of their low carbon transition or climate change adaptation policies.

3. The low-carbon transition as a reversal of the techno-economic paradigm : Analysis of the economic, social and financial impacts of the low carbon transition through a reading grid combining a multisectoral vision and the dynamics of structural changes.

Part 3 : Economic transition of the Mediterranean countries

Focus on the different types of transitions experienced by the Mediterranean countries.

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Big data and economics

## CONTENT

he objective is to introduce several questions associated with the use of big data in order to understand the context, impacts and limits of this new technology. Particular issues will be presented to students : e.g. access, security, innovation and opportunities in order to specifically identify how big data can boost local development, and allow to design new public policies.

Course outline :

Part I : Data and local development

I. Open data, Smart Region and innovation

II. Contracts and legal aspect of the platform FlexGrid, a tool for energy transition

Part II : Big data and security

I. Public security and cities security

II. Cybersecurity

Part II : Big data, a decision-making support

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Elective teaching units, choose 3 among 6 (9 ECTS)

### Economics, finance and crises (3 ECTS)

### Economics, finance and crises

## CONTENT

Using both empirical evidences and theoretical concepts, this course aims at explaining how economic and financial issues are closely related, and how shocks and crises can propagate. It also explains the interactions between financial markets and economic cycles (in light of the recent crises).

**Course outline :**

- Empirical Evidence on Financial Crises
- Financial frictions
- The financial crisis of 2006-2009
- Unconventional monetary policy
- European Sovereign Debt Crisis Discussion

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Programming for Big Data (Python, SQL, noSQL, etc) (3 ECTS)

### Programming for Big Data (Python, SQL, noSQL, etc)

## CONTENT

This course is aimed at teaching the basics of computer programming, with emphasis on its use in Big Data. Students will first become familiar with database management. They will then learn the basics of programming with the computer language Python.

**Course outline :**

1. Database Management (relational model, relational algebra, SQL language,…)

2. Introduction to Python

3. Creating Functions

4. Introduction to Numpy

5. Data manipulation with Pandas

6. Visualization

7. Parallel programming

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Development economics (3 ECTS)

### Development economics

## CONTENT

This course is meant to train students on recent topics in development economics bridging the gap between theoretical and empirical research and the implementation of public policy to eradicate poverty. In this sense, the course will allow the students to apply the analytical tools they acquired during the first year of the master to specific questions and to relate them to targeted policies and their effectiveness.

This course will focus on *microeconomic* issues, seeking to understand the factors and constraints influencing individual-level, household-level, or firm-level decision-making in developing countries.

We will cover a series of broad topics. The first will concern __human capital__. Health and education are desirable per se, but they are also important determinants of productivity and of fertility levels (and of each other). What prevents poor households from becoming healthier and to acquiring more education ? Why are girls often at a disadvantage within the household ? What policies can improve health and education levels in developing countries ?

The second broad topic will concern __financial capital__. Most people in developing countries are self-employed earning highly irregular income, either a daily profit in the informal sector when business is good or only realizing income once or twice a year in farming when the harvest is good. How do households deal with such irregular income ? Can they borrow and save, and if not why not ? How and how well do informal insurance networks work ? Is microfinance the solution to all problems ?

We will also consider the importance of __physical capital__. Since the majority of poor households live in rural areas, agricultural productivity is central determinant of income for most of the world’ poor. How do the land distribution, property rights and access to technology matter for agricultural productivity ?

To summarize, the course will cover complementary topics in the development literature linking relevant econometric techniques and theoretical models to the implementation of relevant public policies.

__Course outline :__

The detailed list of the topics covered (and the related **plan of the course**) is the following :

INTRODUCTION

- What is economic development ? Measuring poverty.

HUMAN CAPITAL

1. Determinants of health : the household behaviour

- Nutrition based poverty traps
- Adoption and use of health products

2. Education :

- The demand for education and child labour
- The returns to education

3. Fertility, gender gaps and

- The determinants of fertility choices and the missing women
- Intra-household decision making

FINANCIAL CAPITAL

1. Microfinance and micro-savings

- Access to credit in poor countries
- Why don’t the poors save more ?

2. Coping with risk

- Income risk and agricultural production
- Informal safety nets

PHYSICAL CAPITAL

- Property rights and technology adoption :
- Property right and farm productivity
- Technology adoption and information

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Health economics (3 ECTS)

### Health economics

## CONTENT

This course proposes a balanced approach of health economics based on both theoretical and empirical considerations. It deals with the study of the main stakeholders’ economic behaviours of the health sector : patients, health professionals (physicians and hospitals), health insurance, companies producing health goods or pharmaceuticals and health authorities. It invites to reconsider some of the basic concepts in economics (supply and demand, public intervention, uncertainty, information asymmetries, incentives, etc.) and models (growth models and human capital, labour supply, etc.), for a deep understanding of the phenomena at work in the sector. Thus, the course is likely to meet the expectations from students willing to specialise in the analysis of the health sector as well as students interested in illustrations of concepts and mechanisms derived from the economic theory.

**Course outline :**

General introduction (2h-BV)

Part 1. Micro foundations (8h)

Chap 1 The demand for health and healthcare (4h-BV)

• Introducing health in the utility function and deriving healthcare demand : presentation of several options

• The demand for healthcare using the concept of health-capital (Grossman, 1972)

• Empirical illustration

Chap 2 Health supply (4h-AP)

• Self-employed physicians

• Modelling Quality

• Payment schemes

• Empirical illustration

Part 2. Health macroeconomics (8h)

Chap 3 Health as an economic sector (5h-AP)

• Health sector contribution to GDP and growth in France and other OECD countries

• The irresistible growth of the health sector in the economy (health as a luxury or a necessity good ?)

• Innovation in the health sector

• Empirical illustration

Chap 4 Health, development and growth (3h-BV)

• A health-augmented Solow-model

• Health and the development process, the Sachs report & the econometrics of the health/growth relationship

• The burden of diseases in Africa and the notion of “Universal Health Coverage”

• Modelling health in an macroeconomic design : epidemic traps

• Empirical illustration

Part 3. Topics (6h)

Chap 5 Public regulations in the healthcare market

• Measuring and reducing social inequalities in health (3h-BV)

Empirical illustrations

• Information asymmetries in health insurance (3h-AP)

Adverse selection in insurance companies’ plans

Moral hazard and healthcare consumption

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Environmental economics (3 ECTS)

### Environmental economics

## CONTENT

Part I of this lecture is dedicated to the design of an environmental policy. These regulation tools are first introduced in the context od a competitive polluting industry. We concentrate our attention on property rights, usual command and control, Pigouvian taxes, and emission rights permits. In a second step, we discuss the effect of imperfect competition, of imperfect information and of policy spill-overs.

In part two of this course you will learn about the categories of economic value assigned to environment and work through the utility theory on which environment valuation methods are based. We will survey the non-market valuation method employed by economists to measure public goods. This includes Revealed Preference methods and Stated Preference methods based on surveys and hypothetical markets. We will explore theoretical and empirical issues.

**Course outline :**

**Part I : The design of an environmental policies**

1. The regulation of a competitive polluting industry a. A competitive partial equilibrium model b. Property rights and the Coase theorem c. The different instruments

2. Some extensions a. Market Power b. Imperfect information c. Policy spill-overs

**Part II : Valuing the Environment**

1. The theory of environmental valuation a. Categories of Values b. From economic values of non-market goods to valuation methods c. Willingness To Pay (WTP) or Willingness To Accept (WTA)

2. Stated Preference Methods a. Hypothetical Market b. Contingent Valuation Methods c. Choice Modelling

3. Revealed preference Methods a. Valuing consumer's benefits b. Related topics

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Housing economics (3 ECTS)

### Housing economics

## CONTENT

**Course outline :**

Introduction (3h/R.Lecat)

- The triple dimension of Housing
- A joint product of land and structures. Land is fixed, structures are produced
- A highly differentiated consumption good. The highest expenditure share
- A capital good (Investment, Depreciation, renting vs owning)
- International comparisons

Chap 1 : The construction of housing price index (3h/A. Trannoy)

- Models : Hedonic Model (Sherwin Rosen), Repeated Sales (Case and Shiller)
- Empirics : The construction of Notaires-Insee Price index
- How to use the hedonic model to test the success of an urban renewal policy

Chap 2 : Can we regulate the dynamics of housing price through macroprudential policies (9h/R.Lecat)

2.1 Housing price, cycles and financial stability : the transmission of housing price cycles to the financial sector and the real economy (Kiyotaki-Moore ; Campbell and Cocco)

2.2 Housing price bubble

- Housing as a market : the stock-flow model (Di Pasquale and W.Wheaton)
- Housing as an asset : financial valuation models
- Early warning tools
- Examples of Housing price bubbles

2.3 Macroprudential policy tools (Bennani et al.)

- Monetary policy and macroprudential policy
- Demand-oriented
- Supply-oriented
- Impact channels and estimates (Avouyi-Dovi et al.)

Chap 3 : What are the impact of tax and transfer policies on housing market outcomes ? (3h/A. Trannoy)

- Housing supply is fixed at short run. How elastic at long run ?
- The role of land-use policy
- Housing benefits and Rents
- Rent control
- Capitalization of taxes in land values
- Inequality of housing conditions and housing cost of living (Albouy, Bérard-Trannoy)

Chap 4 : Segregation in the City : The sorting of people (3h/A.Trannoy)

- Land location as an auction : The monocentric Alonso Model
- Extension Amenities Bruckner&Thisse&Zenou
- The influence of public transportation on location
- Can social housing mitigate segregation ?

Chap 5 : Do people (rent) follow jobs or do job (wage) follow people (rent) ? (3h/A. Trannoy)

- The Rosen-Roback model
- Empirical evidence : Moretti, Albouy,Davis
- Can territorial policies be efficient to change the spatial equilibrium ?

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### S4 M2 APE (SE) (30 ECTS)

### Knowledge of the professional environment (6 ECTS)

### Corporate strategy

## CONTENT

The objective is to introduce various tools used by private organizations to implement innovative strategies in order to adapt to their new environment, using skill, and knowledge students have learnt so far.

**Course outline :**

Part I : Case studies on a pharmaceutical firm

- Build a business case
- Make recommendations
- Adapt the case to a new situation

Part II : Development of new economic models

- Innovative marketing method
- Circular Economy

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Collaborating with public organizations

## CONTENT

The objective is to develop skills working on publics projects in a professional situation. There is a double aiming : (i) expose students to the management of commons, and the implementation of a local public project (e.g. in relation with urban issues) ; (ii) introduce students to the topic of the implementation of international projects (e.g. in relation with development or environmental issues).

**Course outline :**

Part I : Commons economics

- Introduction
- Examples and discussion
- Case studies
- Implementation of a project (on a voluntary basis).

Part II : Applied development economics

- Introduction
- Case studies

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### End-of-study internship with report and defence (24 ECTS)

### Track APE : magistère option (OPPT) (144 ECTS)

### M1 Economics (magistère option) (AN) (72 ECTS)

### S1 M1 Economics magistère option (SE) (36 ECTS)

### Microeconomics I and II (6 ECTS)

### Microeconomics I

## CONTENT

The objective of this course is to provide students with the foundations of economic theory. The course covers the consumption and production theory and is textbook based. The difficulty and coverage compare to those of the main departments of economics worldwide.

__Course outline :__

The course is textbook based. Topic list : Technology, Profit Maximization, Profit Function, Cost minimization, Cost Function, Duality, Utility Maximization, Choice, Demand.

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Microeconomics II

## CONTENT

**Course outline :**

The course is textbook based. Topics list : Exchange, Time, Equilibrium Analysis, Welfare.

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Macroeconomics I and II (6 ECTS)

### Macroeconomics I

## CONTENT

The objective of this course is to provide students with a framework for thinking about the fundamental questions in international macroeconomics. We will focus on current account imbalances, capital mobility across countries, and the role of fiscal policy in an open economy. Most topics will be approached from both theoretical and empirical points of view.

**Outline**

• Foundations of intertemporal trade

• Derivation of the Current Account

• Transmission of Shocks Across Countries

• Applications and Puzzles

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Macroeconomics II

## CONTENT

Learn the basic models with microeconomic foundations used in modern macroeconomics. Be able to do dynamic analysis. Understand the concept of dynamic efficiency and the role of public expenditures.

**Course outline :**

**1. Introduction with reminders on the Solow model**

**2. The Ramsey model**

2.1. The framework

2.2. Existence and features of the steady state

2.3. Dynamic analysis

2.4. Extension : public spending

**3. The overlapping generations model**

3.1. The model with capital

3.2. Intertemporal equilibrium, steady states and dynamics

3.3. Optimality

3.4. Extensions : public spending ; rational bubbles

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Econometrics I and II (6 ECTS)

### Econometrics I: linear model

## CONTENT

**Provide students with :**

- the basics of panel data econometrics (fixed effects models, error components model)
- the identification of endogeneity problems in econometric models and their treatment (instrumental variables, GMM, tests)

**Course outline :**

1. Introduction to panel data and panel data models

2. The fixed effects model

- Specification of the model
- Estimation of the model : the Within / LSDV estimator.
- Testing the absence of unobserved heterogeneity.

3. The error components model

- Specification of the model
- Estimation of the model : the GLS / FGLS estimators.
- Testing the absence of unobserved heterogeneity.
- Testing the absence of correlation of the effects : the Hausman test

4. Endogeneity issues

- Causes of endogeneity in econometric models : measurement errors, dynamic models, unobserved heterogeneity, etc.
- The instrumental variables estimator
- The GMM estimator
- Looking for instruments (the time-series case, the cross-section case, the panel data case).
- Testing the validity of instruments
- Testing the exogeneity of regressors

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Econometrics II: non linear model

## CONTENT

Provide students with the basics of the econometrics of non linear models for binary, multinomial, ordered and count dependent variables as well as models for censored and truncated variables.

**Course outline :**

1. Introduction to non-linear models in econometrics and a brief reminder about the maximum likelihood principle.

2. Models for binary dependent variables.

- The linear probability model.
- The Logit model.
- The Probit model.

3. Models for multinomial and ordered dependent variables.

4. Models for count data.

5. Models for truncated and censored variables.

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Labor economics - Risk and incentives (6 ECTS)

### Labor economics

## CONTENT

The objective of this course is to provide students with the necessary analytical tools to be able to study the consequences of different institutions, human capital formation, discrimination and wage bargaining on the labor market.

**Course outline :**

Introductory Chapter :

- Presentation
- Objectives
- Evaluation
- Labor market Institutions and course outline

Chapter 1 : « Labor Supply and Labor Demand » :

- Key definitions
- Labor Supply
- Labor Demand
- Equilibrium

Chapter 2. « Minimun wage »

- Facts
- Classical analysis
- The monopsony case
- Dual labor markets

Chapter 3 : « Mandatory contributions and social benefits »

- Facts
- Classical analysis
- Accounting for wage rigidities

Chapter 4. « Labor Unions » :

- Facts : unions, collective bargaining, union density
- The objective of labor unions
- Models of collective bargaining
- Model of strikes
- Empirical evidence and policy issues

Chapter 5. « Discrimination » :

- Facts : gender and ethnic wage and employment gaps
- Economic theories on discrimination
- Measuring wage discrimination
- Empirical results in the literature and policy issues

Chapter 6. « Education and human capital formation » :

- Facts
- The theory of human capital
- Education as a signaling device
- Identifying the causal relation between education and income
- Returns to education : private vs social returns

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Risk and incentives

## CONTENT

The main objective of this course is to provide the students with a theoretical synthetic framework so that they can face the difficulties of the study of economic decisions under uncertainty. Two main general topics will be dealt with : (1) the theory of decision under uncertainty, and (2) the moral hazard issues between several economic agents.

**Course outline :**

Chapter 1 : Risk, uncertainty and strategies

- Introduction of the main concepts (risk, uncertainty, probability, moral hazard, adverse selection)
- Probabilistic framework (space of states, random variables)
- Numerical decision criteria (preferences, representation by a numerical criteria)
- Game theory, Principal-Agent model

Chapter 2 : Expected Utility

- The virtues of the expected utility (Saint-Petersburg paradox)
- The axiomatics of the expected utility (objective and subjective expected utility)
- The limits of the expected utility (Allais paradox, Ellsberg paradox)
- Generalisations of the expected utility (rank-dependent expected utility, Choquet expected utility)

Chapter 3 : Risk Aversion and Risk Measures

- Qualitative approach (certainty equivalent, risk premium, risk attitude)
- Quantitative approach (local measures of risk aversion)
- Stochastic dominance (first and second order)

Chapter 4 : Introduction to moral hazard issues

- Risk sharing and sharecropping contracts
- Credit with risk aversion of the borrower

Chapter 5 : Other applications

- Risky saving
- Application of the expected utility to static portfolio choice

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Methodology I (6 ECTS)

### Software for economists I

## CONTENT

Provide students with the basics of the statistical and econometric treatment of data using SAS, from the statistical description of the sample, the detection of outliers to the implementation of estimation techniques for linear and non-linear models.

**Course outline :**

1. Introduction to SAS : importing and managing data – proc import, proc contents, proc format, proc sort, proc surveyselect and introduction to SAS macro functions.

2. Describing the data : descriptive statistics with SAS – proc means, proc univariate, proc freq, proc tabulate, proc gplot.

3. Estimating and testing linear models : proc reg, proc glm, proc model, proc panel.

4. Estimating and testing non linear models : proc logistic, proc probit, proc model, proc genmod, proc nlmixed.

## VOLUME OF TEACHINGS

- Tutorials:
**24**hours

### Mathematics for economists

## CONTENT

The course intends to deepen the understanding of optimization theory with a geometric approach, and to introduce in a second part the study of dynamical systems.

__Course outline__

**I. Optimization with mixed constraints** a. Tangent cone and KKT conditions b. Mixed constraints problem c. Constraints qualification conditions d. Convex problems e. Saddle point and duality

II. **Dynamical systems** a. Introduction b. Systems of linear equations

- Constant coefficient : resolution, exponantial of matrices
- Dynamic of the solutions : steady state, stability, planar systems
- nonhomogeneous systems c. Systems of nonlinear differential equations
- Existence and uniqueness theorem
- Linearized system, Hartman-Grobman theorem

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Big Data (6 ECTS)

### Big data, challenges and opportunities

### Programming for Big Data, an introduction to Python and SQL

## CONTENT

This course is aimed at teaching the basics of computer programming, with emphasis on its use in Big Data. Students will first become familiar with database management (relational or not). They will then learn the basics of programming with the computer language Python.

**Course outline :**

Chapter 1 : Relational databases

1. Introduction

2. The relational model

3. Relational algebra

4. SQL Language

5. Entity-Association Schemes

Chapter 2 : Non-relational databases

1. Introduction

2. Parallel Computing

3. Schemas, and non-relational databases

4. MongoDB

Chapter 3 : Introduction to Python

1. Variables et calculs

2. Strings, lists, tuples, dictionnaries

3. If… else conditions

4. Loops

5. Functions

6. Introduction to Numpy

7. Data handling with Pandas

8. Visualization

9. Parallel programming

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Big data softwares

### S2 M1 Economics magistère option (SE) (36 ECTS)

### Microeconomics III and IV (6 ECTS)

### Microeconomics III - Game theory

## CONTENT

Introducing the basic concepts of Game Theory.

**Course outline :**

1. Complete information games (normal form, examples, analysis)

2. Mixed extension (lotteries, expected gain, mixed-strategy equilibrium)

3. Games with continuous actions (externalities,imperfect competition)

4. Incomplete information games (extensive form, subgame perfection)

5. Additional examples.

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Microeconomics IV - Public economics

## CONTENT

The objective of this course is to study the role of state in the economy. It is designed to provide students with a broad overview of issues investigated in public economics. We will review the rational foundations of public intervention and explore some of the tools used by government to act : taxes and transfers, the provision of public goods, or the design of welfare schemes. Most topics will be approached from both theoretical and empirical points of view.

__Course outline :__

**Lecture 1 – Introduction to public economics**

- Foundations of public intervention – Normative and positive public economics – Some numbers about public intervention – Empirical methods for public economics

**Lecture 2 – Social choice and social welfare**

- Axiomatic approach to social choice – Social welfare functions

**Lecture 3 – Public goods and externalities**

- Public goods – Externalities

**Lecture 4 – Taxation of commodities**

- Tax incidence – Optimal commodity taxation

**Lecture 5 – Taxation of labor**

- Optimal labor taxation – Some empirics around labor taxation

**Lecture 6 – Taxation of capital**

- Taxes in an intertemporal framework – Optimal capital income taxation – Taxation of inheritances

**Lecture 7 – Social insurance**

- Unemployment insurance and workers’ compensation – Disability insurance – Health insurance

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Big Data (6 ECTS)

### Advanced SAS

### Introduction to machine learning

### Méthodologie (9 ECTS)

### Software for economists II

## CONTENT

The objective of this course is twofold. Firstly, to study how to use and manipulate databases with Stata and secondly, to perform empirical analysis in relation with the concepts learned in the time series and econometric methods of evaluation classes. After a short introduction to Stata, the course will be divided into tasks-oriented sessions (with mini-projects and exercises) during which the students will perform empirical analysis using databases such as the World Values Survey, the French Labor Force Survey, the National Supported Work data, etc.

**Course outline :**

Lecture 1 : Introduction to Stata and database manipulation

Why using Stata – What Stata looks like – Importing and reading data into Stata – Examining the data – Saving the dataset – Keeping track of things – Organizing datasets – Creating new variables – Panel data manipulation

Lecture 2 : Graphs and linear regressions

Histograms – Two-dimensional graphs – Linear regressions – Post-estimation – Extracting results – Hypothesis testing – Interaction terms – Non-linearity – Fixed effects

Lecture 3 : Endogeneity and public policies econometrics

Randomized control trials – Difference-in-differences – Validity checks

Lecture 4 : Time series

Stationary and non-stationary processes

## VOLUME OF TEACHINGS

- Tutorials:
**24**hours

### Mathematics for finance

## CONTENT

**Objectives :**

Introducing elementary tools to analyse discrete and continuous-time random processes.

**Roadmap :**

1. Markov chains

1.1. Introductory Example : random walks

1.2. Markov chains on a finite state space

1.3. Markov chains on countable state spaces

1.3.1. States classification

1.3.2. Asymptotic results

2. Markovian processes in continuous time

2.1. Poisson processes

2.2. Continuous-time Markov processes

2.3. Queueing theory

3. Discrete-time random processes

3.1. Conditional expectation

3.2. Martingales

3.3. Stopping time

3.4. Convergence theorems

3.5. Applications

4. Introduction to continuous-time stochastic processes : Brownian motion

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Evaluation by econometric methods

## CONTENT

The objective of the course is to offer M1 students with an overview of the main empirical methods used for the evaluation of public policies. We will study key articles taken from various applied economics literature (health, education or activive labor policies). Practical case studies on STATA will be offered all along. We will point out advantages and limits of each method as well as guide in the selection of the appropriate method.

**Course outline :**

Introduction

1. Why evaluate ? What do we evaluate ? What is the objective ?

2. Potential outcome framework

3. Treatment effects and counterfactuals

4. Selection bias

Chapter 1 : Randomized experiments

1. Random assignment

2. Underlying assumptions

3. Study of 2 empirical papers using the method

4. Randomized experiments in practice

Running example : exercise on National Supported Work (NSW) data

Chapter 2 : Natural experiment : Difference-in-difference method

1. Model and underlying assumptions

2. Study of 2 empirical papers using the method

3. Extensions

4. D-in-D in practice

Running example : exercise on National Supported Work (NSW) data

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Macroeconomics III and IV (6 ECTS)

### Macroeconomics III

## CONTENT

The aim of the course is to present advanced macroeconomic topics related to the analysis of aggregate consumption, aggregate investment and modern business cycle analysis with the Real Business Cycle model.

**Course outline :**

**Chap. I : Consumption theory**

1. Consumption over the life cycle : the life-cycle/permanent income models

2. Introducing uncertainty – The random walk hypothesis

3. Market imperfections : the role of liquidity constraints

4. Extensions : risk aversion, precautionary savings

**Chap. 2 : Investment theory**

1. The neoclassical model of capital demand

2. Investment with and without capital adjustment costs : Q-theory models

3. Role of shocks : real shocks, news shocks, noise shocks

**Chap. 3 : Real Business Cycles**

1. Measuring business cycles : trend-cycle decompositions and stylized facts

2. The canonical RBC model

3. Evaluation of the model

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Macroeconomics IV

## CONTENT

This course follows Macroeconomics II and it goes deeper in the description of micro-founded models by introducing market frictions into the RBC model. The DSGE-New Keynesian model which includes nominal rigidity is a natural extension of the RBC model to analyse monetary policy / fiscal policy. Although this course is mainly theoretical, lectures will be motivated by stylized facts and the empirical performance of business cycle models will be discussed.

**Course outline :**

**Chapter 1 : Nominal rigidities** (1) Introducing money in RBC model (2) Monopolistic competition (3) Price rigidity (4) Exercises

**Chapter 2 : Monetary and Fiscal policy** (1) Monetary policy analysis (2) Fiscal policy analysis (3) New topics in macroeconomics (ZLB, forward guidance…)

(4) Exercises

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Vocational courses (6 ECTS)

### Quantitative marketing

### Software: R

### Economic policy II

### Insurance mechanisms

### Oral training on Economics topics

### Oral training in English

### Electives courses (choose 1 among 5) (3 ECTS)

### Introduction to corporate finance (3 ECTS)

### Introduction to corporate finance

### Project management (3 ECTS)

### Project management

## CONTENT

Designing and managing development aid projects according to international standards.

**Course outline :**

The students will learn and practice how to build a development program.

## VOLUME OF TEACHINGS

- Lectures:
**18**hours

### Health and environmental economics (3 ECTS)

### Health and environmental economics

## CONTENT

The goal of this course is to bring together health and environmental economics as two narrow fields within the discipline of economics. This shall be done by identifying the interactions and intersections between health and environmental issues, describing the main economic properties that health and environment do have in common (market failure, externalities, government involvements…). This shall be followed by delineating the unique features of health and environment that make of them two distinct topics of study. Following this line of reasoning, the course shall, then, present two self-contained parts devoted to health economics and environmental economics. Each part shall present the workhorse analytical concepts and methods used by economists to explore specific issues relating to the two subfields. The course shall emphasize the use of economic evidence to identify priority issues and the most effective policies for health and environment. Examples and experiences of the kinds of topics that are addressed shall be provided all through the course.

**Course outline :**

Part I (4 hours) Overview : The links between health, environment and the economy

• Economic properties of health and environment

- What distinguishes “health goods” from “environmental goods” ?
- Typology of goods : Pure vs. impure public goods, private vs. publicly-provided private good, global vs. local public goods.

• The economic valuation approach :

- The theory of externalities
- Welfarism vs. extra-welfarism analysis
- Cost-benefit analysis, cost-effectiveness analysis, cost-utility analysis.
- Revealed vs. stated-preferences methods

• Government intervention and regulations

- Why do governments provide goods that are not pure public goods ? The case of health care services.
- What are the special characteristics and challenges of the “global public goods” ? The case of global climate change
- Rationing devices for publicly-provided goods (User charges, uniform provision, queuing).
- Efficiency conditions for public and pure public goods : Collective demand curve and provision of public goods.

Part II (7 hours) : Economics of Health and Health Care

• Overview : Health economics as a field of inquiry

• Health care market structure, conduct and performance :

- Do the law of supply and demand apply to health and health care ?
- What makes health and health care different ?
- Demand for health and health care : Health behavior
- Supply of health care : Production, provision and costs of health care.
- Health insurance markets : Public vs. private health insurance schemes, asymmetric information and agency, moral hazard and adverse selection.

• Reforming health care : Goals of reform, cost containment, efficiency and equity, extending insurance coverage, costs of universal coverage.

Part III (7 hours) : Economics of the Environment

• Overview : Economics and Environment :

- A framework of analysis, environmental microeconomics and macroeconomics.
- The environment as a public good.
- The global commons

• Ecological Economics and the Economic analysis of Environmental Issues :

- Valuing the environment, accounting for environmental costs, internalizing environmental costs, optimal pollution, the Coase theorem.
- Environmentally-adjusted national income accounts, the Genuine progress indicator, the better life index, environmental assets accounts.

• Environmental Health Policy : Impacts and Policy Responses :

- Measuring the economic cost of environmental impacts on health.
- Economic analysis and assessments of the performance of alternative policies in areas such as climate change, outdoor air pollution, water and sanitation.

## VOLUME OF TEACHINGS

- Lectures:
**18**hours

### Financial econometrics (3 ECTS)

### Financial econometrics

## CONTENT

1. Analyzing the properties of financial time series : application to French stock markets

The data consists of the stocks of the French CAC40 on a daily basis since 1980. Data are provided in excel format and need to be download to GRETL. Different companies are used as examples.

- Computing returns and historical volatility and analyzing their graphs (mean, variance, skewness and kurtosis, quantiles, min and max, autocorrelation)
- Analyzing the distributions of returns : non-parametric approaches (histograms and CDF based on kernels ; normality tests : QQ plot, Shapiro-Wilkinson, Doornik-Hansen, Jarque-Bera, etc.)
- Informal presentation of stable distributions : index of stability, skewness parameter, scale parameter, location parameter
- Example of parametrization of a stable distribution : the regression analysis of power law distributions.

2. Regression analysis of financial data

2.1.Evaluating the performance of a money manager : CAPM model

The data consist of the S&P 500 and some of its components (General Electric, Ford, Microsoft, ORACLE) and the 3-month Treasury bill).

- Estimate of the Betas using OLS and GLS
- Test of the CAPM using a two-pass regression
- The Jensen measure to evaluate manager performance.

2.2. Modellling the term structure of interest rates

The data consist of the Government zero-coupon bond yield taken at a daily frequency from 1990 to 2017 with several maturities : 6 months, 1 year, 2 years, 4, years, 4 years, 5 years, 7 years and 10 years.

- Analyzing some basic stylized facts of government bond yields (graphs of term to maturity, statistical properties, normality tets, correlation matrix, etc…).
- Recall on asset pricing, Duffie-Kan affine models and the decomposition of the yield curve.
- Decomposition of the tield curve using the Diebold’s regression approach : Level, slope and curvature curves.
- Factor models : a basic presentation of Kalman filter methodology and applications to the yield curve.

3.Some benchmark models for forecasting and trading models

The data consists of US/euro, US/Japan, US/UK exchange rate (daily) from 1999 and 1977 to 2017.

3.1.Models of naïve and MACD (moving average) strategies

3.2.ARMA models (identification via ACF and PACF, estimation, residual tests and forecasts)

3.3.Dectecting long-range dependence structure : an introduction to ARFIMA models

3.4.Introduction to stochastic volatility models : Harvey models and ARCH-GARCH models (tests and estimation).

## VOLUME OF TEACHINGS

- Lectures:
**18**hours

### International trade (3 ECTS)

### International trade

## CONTENT

The aim of this course is to provide students the analytical tools that are essential to understand the causes and consequences of international trade. We will focus on some key questions as why nations trade, what they trade and who gains (or not) from trade. We will then analyse the reasons for countries to limit or regulate the exchange of goods and study the effects of such policies on development and inequality. We will also tackle some aspects of the globalization process like international norms, labor standards, firms’ organization, etc. We will heavily rely on formal economic modelling to help us understand issues of international trade.

**Course outline :**

1. Introduction – Basic facts

2. The Ricardian model

3. The Specific Factors model

4. The Hecksher-Ohlin Model

5. Trade theory with firm-level heterogeneity

## VOLUME OF TEACHINGS

- Lectures:
**18**hours

### M2 track APE magistère option (AN) (72 ECTS)

### S3 track APE magistère option (SE) (36 ECTS)

### Methodology (6 ECTS)

### Writing and oral communication training

## CONTENT

This course aims to develop / perfect the writing skills of students and their communication skills in both English and French. This teaching is very interactive by nature, where the objective is :

- to make individual oral presentations on various topics in front of the rest of the group,
- to write notes of synthesis allowing him to support his editorial capacities.

At the end of this course, the student will naturally build a structured and convincing discussion in front of an informed public.

**Detailed course plan :**

1st part : Writing expression

1. How to write with simple and complex sentences and / or text rewriting workshop,

2. Being able to synthesize with reduction text exercise (from 7000 signs to 2000-500 signs) and / or writing summaries for different publics and / or principles of writing of synthesis

2nd part : Oral expression

1. Principles of oral expression and construction of slides

2. Short presentation workshop with and without support

3. Contradictory presentation workshop in groups

### Project management

## CONTENT

This course aims at training students to conceive development projects. It is based on the study case of a real PCM process

**Detailed course plan :**

Session 1 : PCM ; Presentation of the study case : applicant NGO, field partners, guidelines, grant application form…

Session 2 : Participation to the identification process of a real development project : from the focus group to the problem tree co construction

Sessions 3 and 4 : Participation to the formulation process of a real development project : from the objective tree to the logical framework

Sessions 5 and 6 : Participation to the budgeting process of a real development project : from the intervention logic to the concept note and figures

Session 7 : Evaluation of the project

## VOLUME OF TEACHINGS

- Tutorials:
**5**hours

### End-of-study project (6 ECTS)

### Big Data (6 ECTS)

### IT tools for Big Data, a deeper view

### Advanced machine learning

### Decision-making support: quantitative methods (6 ECTS)

### Quantitative tools in economics

## CONTENT

The objective is to introduce various tools used to build economic analysis, and decision-making. Two main approaches are introduced : Cost-Benefit Analysis and simulation models. The main principles of each method will be discussed, following the objective that students will be able to implement them in their job.

**Course outline :**

Part I : Cost-Benefit Analysis

Chapter 1 : Introducing CBA

Chapter 2 : Valuing benefits and costs in primary markets

Chapter 3 : Valuing secondary markets

Chapter 4 : Benefits and costs in future time periods

Chapter 5 : Dealing with uncertainty, expected values, sensitivity analysis, and the value of information

Chapter 6 : Shadow prices from secondary sources

Partie II : On the energy scenarios : How to produce them ? To use them ? What are their limits ?

Chapter 1 : Introduction on prospective and scenarios methods

Chapter 2 : The energy transition in France

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Public policies econometrics

## CONTENT

The maib objective of this course is to provide the with a theoretical synthetic framework so that they can face the difficulties of the study of economic decisions under uncertainty. Two main general topics will be dealt with : (1) the theory of decision under uncertainty, and (2) the moral hazard issues between several economic agents.

**Course outline :**

Chapter 1 : Risk, uncertainty and strategies

- Introduction of the main concepts (risk, uncertainty, probability, moral hazard, adverse selection)
- Probabilistic framework (space of states, random variables)
- Numerical decision criteria (preferences, representation by a numerical criteria)
- Game theory, Principal-Agent model

Chapter 2 : Expected Utility

- The virtues of the expected utility (Saint-Petersburg paradox)
- The axiomatics of the expected utility (objective and subjective expected utility)
- The limits of the expected utility (Allais paradox, Ellsberg paradox)
- Generalisations of the expected utility (rank-dependent expected utility, Choquet expected utility)

Chapter 3 : Risk Aversion and Risk Measures

- Qualitative approach (certainty equivalent, risk premium, risk attitude)
- Quantitative approach (local measures of risk aversion)
- Stochastic dominance (first and second order)

Chapter 4 : Introduction to moral hazard issues

- Risk sharing and sharecropping contracts
- Credit with risk aversion of the borrower

Chapter 5 : Other applications

- Risky saving
- Application of the expected utility to static portfolio choice

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Topics in contemporary economics (9 ECTS)

### Applied economics issues

## CONTENT

The objective of the course is to train students to think as economists. To this end, the course choses to focus on different topics of a specific developing region, the middle east and north African region. Around specific concerns in the Mediterranean region, we will develop student’s critical thinking skills and allow them to analyse information on a given subject or recent events (eg. Arab spring, women empowerment, etc.). The topics are of interest to many but should be seen as tools to serves the purpose of the intellectual exercise of studying a phenomenon using economic thinking. This course will provide students with a general knowledge of advanced economics while using underlying theoretical concepts.

Course outline :

Introduction – Main issues in the Mediterranean countries

Part 1 : Resources allocation in MENA

1.2 Openness to trade and Development

1.3 Private sector : What’s holding back in the region ?

1.4 Women entrepreneurship and empowerment

Part 2 : The Arab spring

2.1 Facts and empirics on institutional change and development

2.2 Benchmark theories : democratization games

2.3 Understandings the Arab spring

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Transitions and economic policies

## CONTENT

The objective of this course is to analyze the current changes (economic uncertainty, political transition, climate change…) in order to understand the issues and assess the economic impacts. This involves analyzing how economic policies adapt and respond to these changes.

**Course overview :**

Part 1 : Economic policy analysis

Short to medium-term impact of economic policies (fiscal, monetary and structural ones) and economic gains or losses which could be observed from economic policy coordination among developed countries. The economic gains or losses from being part of a monetary union (such as the Euro Area) are analyzed. The use of an original software (MacSim2) to simulate economic policies in the main developed countries illustrates these gains or losses.

Exercise 1 : The impacts of several types of macroeconomic policies

Exercise 2 : The impact of a coordination of recovery plans and public finance consolidation programs

Exercise 3 : The impact of fiscal policy coordination

Exercise 4 : The impact of protectionist policies

Exercise 5 : The reform of the retirement pension

Exercise 6 : Structural reform coordination

Exercise 7 : Changes in the financing of the social protection costs : fiscal devaluation ?

Exercise 8 : The interest of a Monetary Union in the context of demand or supply macroeconomic policies

Exercice 9 : Migrant shock in Germany

Exercice 10 : The Brexit

Part 2 : Low carbon transition and the economic impacts of climate change.

1. Climato-economic models and international climate negotiations : enemies or allies ? Approach from a historical point of view by putting into perspective the evolution of climate negotiations with the development of economic models.

2. The climate-stability compromise : an introduction to the GEMMES research program. Description of the GEMMES project of the AFD which aims on the one hand to contribute to the international debates on climate policies such as the price of carbon, the green jobs or the role of the public sector and on the other hand to accompany the partner countries in the specification and implementation of their low carbon transition or climate change adaptation policies.

3. The low-carbon transition as a reversal of the techno-economic paradigm : Analysis of the economic, social and financial impacts of the low carbon transition through a reading grid combining a multisectoral vision and the dynamics of structural changes.

Part 3 : Economic transition of the Mediterranean countries

Focus on the different types of transitions experienced by the Mediterranean countries.

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Big data and economics

## CONTENT

he objective is to introduce several questions associated with the use of big data in order to understand the context, impacts and limits of this new technology. Particular issues will be presented to students : e.g. access, security, innovation and opportunities in order to specifically identify how big data can boost local development, and allow to design new public policies.

Course outline :

Part I : Data and local development

I. Open data, Smart Region and innovation

II. Contracts and legal aspect of the platform FlexGrid, a tool for energy transition

Part II : Big data and security

I. Public security and cities security

II. Cybersecurity

Part II : Big data, a decision-making support

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### 1 UE au choix parmi 4 (3 ECTS)

### Development economics (3 ECTS)

### Development economics

## CONTENT

This course is meant to train students on recent topics in development economics bridging the gap between theoretical and empirical research and the implementation of public policy to eradicate poverty. In this sense, the course will allow the students to apply the analytical tools they acquired during the first year of the master to specific questions and to relate them to targeted policies and their effectiveness.

This course will focus on *microeconomic* issues, seeking to understand the factors and constraints influencing individual-level, household-level, or firm-level decision-making in developing countries.

We will cover a series of broad topics. The first will concern __human capital__. Health and education are desirable per se, but they are also important determinants of productivity and of fertility levels (and of each other). What prevents poor households from becoming healthier and to acquiring more education ? Why are girls often at a disadvantage within the household ? What policies can improve health and education levels in developing countries ?

The second broad topic will concern __financial capital__. Most people in developing countries are self-employed earning highly irregular income, either a daily profit in the informal sector when business is good or only realizing income once or twice a year in farming when the harvest is good. How do households deal with such irregular income ? Can they borrow and save, and if not why not ? How and how well do informal insurance networks work ? Is microfinance the solution to all problems ?

We will also consider the importance of __physical capital__. Since the majority of poor households live in rural areas, agricultural productivity is central determinant of income for most of the world’ poor. How do the land distribution, property rights and access to technology matter for agricultural productivity ?

To summarize, the course will cover complementary topics in the development literature linking relevant econometric techniques and theoretical models to the implementation of relevant public policies.

__Course outline :__

The detailed list of the topics covered (and the related **plan of the course**) is the following :

INTRODUCTION

- What is economic development ? Measuring poverty.

HUMAN CAPITAL

1. Determinants of health : the household behaviour

- Nutrition based poverty traps
- Adoption and use of health products

2. Education :

- The demand for education and child labour
- The returns to education

3. Fertility, gender gaps and

- The determinants of fertility choices and the missing women
- Intra-household decision making

FINANCIAL CAPITAL

1. Microfinance and micro-savings

- Access to credit in poor countries
- Why don’t the poors save more ?

2. Coping with risk

- Income risk and agricultural production
- Informal safety nets

PHYSICAL CAPITAL

- Property rights and technology adoption :
- Property right and farm productivity
- Technology adoption and information

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Health economics (3 ECTS)

### Health economics

## CONTENT

This course proposes a balanced approach of health economics based on both theoretical and empirical considerations. It deals with the study of the main stakeholders’ economic behaviours of the health sector : patients, health professionals (physicians and hospitals), health insurance, companies producing health goods or pharmaceuticals and health authorities. It invites to reconsider some of the basic concepts in economics (supply and demand, public intervention, uncertainty, information asymmetries, incentives, etc.) and models (growth models and human capital, labour supply, etc.), for a deep understanding of the phenomena at work in the sector. Thus, the course is likely to meet the expectations from students willing to specialise in the analysis of the health sector as well as students interested in illustrations of concepts and mechanisms derived from the economic theory.

**Course outline :**

General introduction (2h-BV)

Part 1. Micro foundations (8h)

Chap 1 The demand for health and healthcare (4h-BV)

• Introducing health in the utility function and deriving healthcare demand : presentation of several options

• The demand for healthcare using the concept of health-capital (Grossman, 1972)

• Empirical illustration

Chap 2 Health supply (4h-AP)

• Self-employed physicians

• Modelling Quality

• Payment schemes

• Empirical illustration

Part 2. Health macroeconomics (8h)

Chap 3 Health as an economic sector (5h-AP)

• Health sector contribution to GDP and growth in France and other OECD countries

• The irresistible growth of the health sector in the economy (health as a luxury or a necessity good ?)

• Innovation in the health sector

• Empirical illustration

Chap 4 Health, development and growth (3h-BV)

• A health-augmented Solow-model

• Health and the development process, the Sachs report & the econometrics of the health/growth relationship

• The burden of diseases in Africa and the notion of “Universal Health Coverage”

• Modelling health in an macroeconomic design : epidemic traps

• Empirical illustration

Part 3. Topics (6h)

Chap 5 Public regulations in the healthcare market

• Measuring and reducing social inequalities in health (3h-BV)

Empirical illustrations

• Information asymmetries in health insurance (3h-AP)

Adverse selection in insurance companies’ plans

Moral hazard and healthcare consumption

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Environmental economics (3 ECTS)

### Environmental economics

## CONTENT

Part I of this lecture is dedicated to the design of an environmental policy. These regulation tools are first introduced in the context od a competitive polluting industry. We concentrate our attention on property rights, usual command and control, Pigouvian taxes, and emission rights permits. In a second step, we discuss the effect of imperfect competition, of imperfect information and of policy spill-overs.

In part two of this course you will learn about the categories of economic value assigned to environment and work through the utility theory on which environment valuation methods are based. We will survey the non-market valuation method employed by economists to measure public goods. This includes Revealed Preference methods and Stated Preference methods based on surveys and hypothetical markets. We will explore theoretical and empirical issues.

**Course outline :**

**Part I : The design of an environmental policies**

1. The regulation of a competitive polluting industry a. A competitive partial equilibrium model b. Property rights and the Coase theorem c. The different instruments

2. Some extensions a. Market Power b. Imperfect information c. Policy spill-overs

**Part II : Valuing the Environment**

1. The theory of environmental valuation a. Categories of Values b. From economic values of non-market goods to valuation methods c. Willingness To Pay (WTP) or Willingness To Accept (WTA)

2. Stated Preference Methods a. Hypothetical Market b. Contingent Valuation Methods c. Choice Modelling

3. Revealed preference Methods a. Valuing consumer's benefits b. Related topics

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Housing economics (3 ECTS)

### Housing economics

## CONTENT

**Course outline :**

Introduction (3h/R.Lecat)

- The triple dimension of Housing
- A joint product of land and structures. Land is fixed, structures are produced
- A highly differentiated consumption good. The highest expenditure share
- A capital good (Investment, Depreciation, renting vs owning)
- International comparisons

Chap 1 : The construction of housing price index (3h/A. Trannoy)

- Models : Hedonic Model (Sherwin Rosen), Repeated Sales (Case and Shiller)
- Empirics : The construction of Notaires-Insee Price index
- How to use the hedonic model to test the success of an urban renewal policy

Chap 2 : Can we regulate the dynamics of housing price through macroprudential policies (9h/R.Lecat)

2.1 Housing price, cycles and financial stability : the transmission of housing price cycles to the financial sector and the real economy (Kiyotaki-Moore ; Campbell and Cocco)

2.2 Housing price bubble

- Housing as a market : the stock-flow model (Di Pasquale and W.Wheaton)
- Housing as an asset : financial valuation models
- Early warning tools
- Examples of Housing price bubbles

2.3 Macroprudential policy tools (Bennani et al.)

- Monetary policy and macroprudential policy
- Demand-oriented
- Supply-oriented
- Impact channels and estimates (Avouyi-Dovi et al.)

Chap 3 : What are the impact of tax and transfer policies on housing market outcomes ? (3h/A. Trannoy)

- Housing supply is fixed at short run. How elastic at long run ?
- The role of land-use policy
- Housing benefits and Rents
- Rent control
- Capitalization of taxes in land values
- Inequality of housing conditions and housing cost of living (Albouy, Bérard-Trannoy)

Chap 4 : Segregation in the City : The sorting of people (3h/A.Trannoy)

- Land location as an auction : The monocentric Alonso Model
- Extension Amenities Bruckner&Thisse&Zenou
- The influence of public transportation on location
- Can social housing mitigate segregation ?

Chap 5 : Do people (rent) follow jobs or do job (wage) follow people (rent) ? (3h/A. Trannoy)

- The Rosen-Roback model
- Empirical evidence : Moretti, Albouy,Davis
- Can territorial policies be efficient to change the spatial equilibrium ?

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### S4 track APE magistère option (SE) (36 ECTS)

### Big data IV (6 ECTS)

### Managing Big Data with SAS

### Hands-on project

### Knowledge of the professional environment (6 ECTS)

### Corporate strategy

## CONTENT

The objective is to introduce various tools used by private organizations to implement innovative strategies in order to adapt to their new environment, using skill, and knowledge students have learnt so far.

**Course outline :**

Part I : Case studies on a pharmaceutical firm

- Build a business case
- Make recommendations
- Adapt the case to a new situation

Part II : Development of new economic models

- Innovative marketing method
- Circular Economy

## VOLUME OF TEACHINGS

- Lectures:
**24**hours

### Collaborating with public organizations

## CONTENT

The objective is to develop skills working on publics projects in a professional situation. There is a double aiming : (i) expose students to the management of commons, and the implementation of a local public project (e.g. in relation with urban issues) ; (ii) introduce students to the topic of the implementation of international projects (e.g. in relation with development or environmental issues).

**Course outline :**

Part I : Commons economics

- Introduction
- Examples and discussion
- Case studies
- Implementation of a project (on a voluntary basis).

Part II : Applied development economics

- Introduction
- Case studies

## VOLUME OF TEACHINGS

- Lectures:
**24**hours