Quantitative Economics - 1st year of master's degree

Track Recherche PG Eco

• Introduction to Matlab programming

  Introduction to Matlab programming

  Lecturer :
  CEDRIC CROFILS
  

  Total hours : 12
• Data Management and Programming

  Data Management and Programming

  Ects : 3

  Lecturer :
  FABRICE ROSSI
  

  Total hours : 36

  Overview :

  This course provides an introduction to programming and to data management, with a data- oriented point of view. The course contains two parts. The data management part introduces the data life cycle in data oriented projects from data collection to data exploration. While the main focus of the course is tabular data, it contains also an introduction to entity-relationship models and to relational databases. The programming part of the course introduces the fundamental aspects of imperative programming and the use of the main Python data structures. The two aspects of the course are tightly integrated: each aspect of data management is illustrated by adapted programming constructs and uses specific data structures from Python. In addition, an introduction to computational complexity is provided and the scalability of all the methods presented in the course is assessed.

  Coefficient : 0.5 (Pour le M1 Affaires Internationales et Développement) 1 (Pour le M1 Quantitative Economics)

  Recommended prerequisites :

  Most of the course is self-contained but the students are expected to be familiar with all the mathematical tools associated to an economics curriculum: Linear algebra, calculus, continuous optimization, probability and statistics, all at an undergraduate level. A significant part of the examples of data manipulation from the course will make use of this mathematical knowledge. However, the course should be accessible even with only a cursory knowledge of most of the listed concepts.

  Learning outcomes :

  The first objective of the course is to introduce students to data-driven projects, by presenting the first steps of such projects from data collection to data exploration. Acknowledging the strong limitations of integrated software that rely solely (or mostly) on graphical user interfaces, the second major objective of the course is to provide all the programming knowledge and tools needed to implement all those data management steps, relying on Python language.

  After having attended the classes, the students will be able to:

  • specify a data management chain adapted to a data-driven project;
  • identify the potential data value increase at the different steps of the chain;
  • implement those steps in Python: data cleaning, data storage, data aggregation and other requests, data exploration;
  • more generally implement non-obvious data manipulation schemes in Python;
  • assess the computational complexity of Python scripts

  Assessment :

  The final grade will be made of two types of grading: A continuous assessment grade, made mostly of grades obtained to quizzes (approximately 50 % of the grade) and integrating oral participation during the class and regular attendance; A grade obtained on a full data-oriented project from data collection to data exploration (preferably done in groups of 2 students).

  Bibliography-recommended reading

  Python for Data Analysis, Wes McKinney, OReilly, 2017.

• Macroeconometrics

  Macroeconometrics

  Ects : 6

  Lecturer :
  MAGALI MARX
  

  Total hours : 36

  Overview :

  This course will provide the fundamental tools in macroeconometrics. It starts providing the basic knowledge on the modelling of univariate time series, the concept of stationarity, the main tools to represent a univariate time series. Then, it will show some extensions to this basic framework (time varying parameters, selection of variables…). The course will also introduce to forecasting. We will then present the modelling of multivariate time series with VAR models, explain how structural VAR analysis is the natural set up to depart from a purely statistical description and provide economic interpretation. Finally, different extensions to this set up will be introduced: time-varying parameters, co-integration, expectations ….

  Coefficient : 1

  Recommended prerequisites :

  statistics, general mathematical background

  Learning outcomes :

  The objective of the course is to provide the student with the solid theoretical and practical knowledge of the methods used to analyse and model time series data. Practical skills will be acquired through the modelling of economic time series with econometric software (practical sessions under Matlab). After having attended the classes, the students will master the main tools of time series’ modelling and be able to run an empirical work by themselves.

  Assessment :

  Final Exam (50%) + Final Project in pairs (40%) + Participation (10%)

  Bibliography-recommended reading

  Hamilton, J.D. (1994). Time Series Analysis, Princeton University Press. Johnston, J. and J.E. DiNardo (2007), Econometric Methods, Mac Graw-Hill Econometric series.

Mandatory courses M1 Quantitative Economics

• Macroeconomics I

  Macroeconomics I

  Ects : 6

  Lecturer :
  ANNE EPAULARD
  

  Total hours : 36

  Overview :

  The course is organized in two parts.

   

  Growth models: After presenting the stylized facts about long run economic growth, the course will first present the neoclassical growth model (Solow and Ramsey). We will then uncover the endogenous growth models: Models with externalities (Paul Romer, 1986), the role of research and development and human capital (Romer, 1990), and the creation/ destruction model (Aghion & Howitt, 1992).

   

  Business cycles : After presenting the stylized facts about the business cycle, the course will study the canonical real business cycle model. Part of the course will be devoted to programming the RBC model and its real extensions using Matlab and Dynare software.

  Coefficient : 1

  Recommended prerequisites :

  Mathematics & optimisation

  Learning outcomes :

  The course will provide students with sound knowledge and understanding of the basis of modern macroeconomic theory regarding (i) long run economic growth and (ii) business cycles. After attending the classes, the students will master the fundamental models of modern macroeconomics in view of analysing the key issues relative to economic growth in the long run. They will also get familiar with the modelling of business cycles fluctuations to explore the role of stabilization policies.

  Assessment :

  The final grade is built in two parts. 70% of the final grade is based on a final exam (closed book exam). The remaining part is based on a Student reading assignment that each student should made individually, on a paper (either on growth or fluctuations) selected within a given list provided by the teachers. Participation in class will be considered as bonus over this grade.

  Bibliography-recommended reading

  Long-term growth

  Reference book: Aghion, Philippe and Howitt, Peter “The Economic of Growth”, MIT Press 2008

  Business cycles

  Gali, Jordi, Monetary Policy, Inflation and the Business Cycle: An Introduction to the New Keynesian Framework, Princeton University Press (2d edition) Other references will be provided along the course

• Game theory

  Game theory

  Ects : 6

  Lecturer :
  MARION OURY
  

  Total hours : 36

  Overview :

  Chapter 1: Normal form games: pure and mixed strategy Nash equilibrium; weakly/strictly dominated strategies , iterated elimination of dominated strategies.

   

  Chapter 2: Dynamic games: Backward induction, subgame perfect Nash equilibrium, repeated games.

   

  Chapter 3: Incomplete information (in static games): Bayesian Nash equilibrium; introduction to some applications (auctions, finance...)

  Coefficient : 1

  Require prerequisites :

  The student must be at ease with some basic mathematical notions such as: derivations, first-order conditions...

  Learning outcomes :

  The objective of the course is to give some fundamental background in interactive decision making and its applications. After having attended the classes, the students will be able to understand the basic tools of game theory and the importance of this field in economics and finance.

  Assessment :

  A mid-term exam and a final exam

• Microeconomics I

  Microeconomics I

  Ects : 6

  Lecturer :
  MARIA LUISA RATTO
  

  Total hours : 36

  Overview :

  The objective of the course is to provide a comprehensive exposition of the way consumers and firms make their consumption and production decisions in a competitive economy and on how prices are determined in the market (partial equilibrium). The consideration of other market structures like monopoly or oligopoly will give an understanding of how market power affects firms’ behavior and the formation of prices.

   

  Planning / Course Schedule

   

  Producers, Consumers, and Competitive Markets

   

  Consumer Behavior

  Individual and Market Demand

  Duality

  Production

  The Cost of Production

  Profit Maximization and Competitive Supply

  The Analysis of Competitive Markets

   

  Market Structure and Competitive Strategy

   

  Market Power: Monopoly and Monopsony

  Pricing with Market Power

  Monopolistic Competition and Oligopoly

  Coefficient : 1

  Require prerequisites :

  Maths (linear algebra and optimization problems)

  Learning outcomes :

  This course will provide a formalized exposition of the optimal consumption and production decisions by consumers and firms, which determine the allocation of scarce resources in a competitive economy, where agents are assumed to be price takers. The analysis will provide an understanding of how prices are determined by the interaction of the decisions of consumers and firms. The course will then examine the behaviour of individuals in economies with other institutional frameworks (different market structures).

  Students will be provided an intuitive understanding of the economic content of the models, and of their purpose and nature, as well as a clear account of their mathematics.

  Assessment :

  50%(continuous assessment)+50% final exam result.

  Continuous assessment: overall attendance and participation in class and effort to solve exercises on a weekly basis+ Midterm test.

  Bibliography-recommended reading

  Main textbooks:

  · Robert S. Pindyck, Daniel L. Rubinfeld, “Microeconomics “, Pearson, 2018.

  · David Besanko and Ronald R. Braeutigam, “Microeconomics”, 3rd edition, John Wiley & Sons

  · Hugh Gravelle and Ray Rees, “Microeconomics”, 2004, 3rd Edition, FT Prentice Hall

  · H. Varian, “Microeconomic Analysis”, Norton & Company, Inc., 3rd edition, 1992

• Upgrade in statistical tools

  Upgrade in statistical tools

  Ects : 3

  Lecturer :
  ERIC BONSANG
  

  Total hours : 15

  Overview :

  The up-grade course in Mathematics and Optimization will cover the following topics: Solving of differential equations, linear algebra, static optimizing problems (including the resolution of the Lagrange and nonlinear programming problems) and dynmic optimizing problems (Hamiltonian, maximum principle). The objective of the course is to provide students with both an understanding and some practice of the core techniques in mathematics, which are necessary to master for subsequent core and specialization courses of the Master's program.

  Coefficient : 0.5

  Learning outcomes :

  After attending the classes, the students will master the main tools of mathematics and optimization used in economics, and strengthened their analytical ability. They will be well-equiped to continue in the Master's program as all core economics and econometrics courses assume a deep prior knowledge of calculus techniques, matrix algebra, constrained optimiazation.

AQME Certificate courses - Mandatory

• Microeconometrics

  Microeconometrics

  Ects : 6

  Lecturer :
  OLIVIA BERTELLI
  

  Total hours : 30

  Overview :

  This course focuses on micro-econometrics techniques based on temporal data (cross-sectional and panel) and qualitative dependent variables. The first part will explore possible sources of OLS bias and discuss techniques and estimators to address those biases ( micro-econometrics techniques for temporal data, such as first difference, random effects, fixed effects and difference-in-differences estimators). Non-linear models (Probit, Logit models), as well as selection models (Tobit, Heckman selection models) will be the focus of the second part of the course, as well as the instrumental variable estimator. The main themes are presented under a theoretical perspective, accompanied by empirical applications on Stata.

  Coefficient : 1

  Require prerequisites :

  Statistics and Probability, statistical inference, hypothesis testing, OLS with multiple variables

  Learning outcomes :

  At the end of the course the students will master the main micro-econometrics techniques for probability models and temporal data and they will be able to critically analyze applied work that employs these types of estimators.

  Assessment :

  Students will be evaluated in two steps. They will present in pairs a scientific paper among a list provided by the teacher. This will be the same paper to be replicated for the Database and Stata Programming course. The presentation will count for 30% of the final note. The rest of the note will be based on a final written exam scheduled in the exams’ week.

  Bibliography-recommended reading

  List of scientific papers for students’ presentations will be provided at the beginning of the course. Selected chapters from :

  1. Wooldridge, J. (2002) "Econometric analysis of cross-section and panel data", MIT Press, Cambridge.
  2. A. Colin Cameron and Pravin K. Trivedi (2005), "Microeconometrics: Methods and Applications", Cambridge University Press

  All slides, datasets, papers and other materials will be available on the MyCourse webpage.

• Microeconometrics : applications with Stata

  Microeconometrics : applications with Stata

  Ects : 3

  Lecturer :
  OLIVIA BERTELLI
  

  Total hours : 24

  Coefficient : 0.5

Mandatory

• Microeconomics II : Public economics

  Microeconomics II : Public economics

  Ects : 6

  Lecturer :
  SIDARTHA GORDON
  

  Total hours : 36

  Overview :

  The aim of the course is to present the basic principles of public economics, showing the link between theoretical analysis and public policy applications in practice. The course will provide:

  · An overview the main tools of public economic analysis,

  · A presentation of the main market failures and a discussion of government intervention,

  · An introduction to taxation

  · A presentation of social insurance and redistribution programs

  Theoretical concepts will be presented along with empirical evidence. Particular emphasis will be put on the recent empirical advances in public policy analysis.

  Coefficient : 6 ECTS

  Recommended prerequisites :

  Microeconomics, Econometrics

  Learning outcomes :

  After having attended the classes, the students should master the analytical tools and empirical methods to analyze the main market failures and the policies implemented to address them. They should also understand the fundamental trade-off between redistribution and efficiency and the challenges posed by the design of a tax/benefit system.

• Industrial Organization

  Industrial Organization

  Ects : 6

  Lecturer :
  JEROME MATHIS
  

  Total hours : 30

  Overview :

  The course will analyse the following topics: Static models of oligopoly, Quality and product differentiation ; Tacit collusion ; Asymmetric information (Static competition, Communication, Limit pricing) ; Competition and Investment ; Welfare Standards in Competition Policy. The objective of the course is to provide a presentation of modern industrial organization that blends formal models with real-world applications and derives implications for firm strategy and competition policy.

  Coefficient : 1

  Learning outcomes :

  After having attended the classes, the students will understand strategies chosen by firms with market power and how such firms adapt to different market environments.

Optional : Choose 1

• Health Economics

  Health Economics

  Ects : 3

  Lecturer :
  BRIGITTE DORMONT
  

  Total hours : 24

  Coefficient : 1
• Advanced Industrial Organisation

  Advanced Industrial Organisation

  Ects : 3

  Lecturer :
  ANNA CRETI
  

  Total hours : 21

  Overview :

  The course on Advanced Industrial Organization is the follow-up of the basic theories and models developed in the Industrial Organization class. We shall first explore the relationships among firms in the specific context of procurement and regulation. We will the introduce social regulation (economic evaluations that can be used in assessing environmental controls, health and safety). We shall then analyze dynamic aspects of competition that represent critical issues in high technology and information technology industries: innovation and persistence of market dominance, network externalities and two-sided markets. In complement to the Course of Industrial Organization, this course aims at covering most models of imperfect competition among firms to propose an analysis of various pricing strategies, marketing strategies and other strategic manipulations that characterize firms’ behavior when they try to gain or maintain market power.

  Coefficient : 0.5

  Learning outcomes :

  After attending the classes, the students will have acquired a deep understanding of the advanced methods of quantitative industrial organization and game theory, to study the strategic interaction between firms and regulators, and dynamic competition models.

  Assessment :

  0.5

  Bibliography-recommended reading

  Economics of Regulation and Antitrust, Viscusi, Vernon Harrington. The Theory of Industrial Organization, Tirole.

• International Trade: Theory and Policy

  International Trade: Theory and Policy

  Ects : 3

  Lecturer :
  JOACHIM JARREAU
  

  Total hours : 21

  Overview :

  The course will focus on the most recent theories of trade which are relevant for research on and analysis of the determinants and impacts of globalization, trade patterns, and trade policy. These theories allow to understand trade based on economies of scale and to analyze modern trade patterns, the gains from trade, and the use of trade policy instruments by governments. Part of the course will be devoted to empirical tests of these theories. The objective of the course is to become familiar with the more recent theories of trade, new gains from trade, and trade policy. The course will cover models of trade of differentiated products, starting with Krugman’s model and covering Melitz’s model with firm heterogeneity in detail. We will study how trade costs impact the level of trade, using the gravity model and studying its theoretical foundations and the empirical methods to estimate it. Finally, the course will provide an introduction to political economy models of trade, which aim to explain the formation of trade policy as a result of divergent domestic interests.

  Coefficient : 0.5

  Learning outcomes :

  After having attended the classes, the students will be able to assess the determinants of trade between similar countries, the impact of trade on entry and exit of firms and on aggregate productivity. They will also have acquired the ability to discuss the policy implications in terms of trade policy. A careful reading of dedicated research papers will also give them the ability to understand and discuss the recent literature on these issues.

  Bibliography-recommended reading

  All necessary material will be provided in the course. Relevant textbooks include:

   

  Feenstra: Advanced international trade

   

  Ivan Ledezma, Helene Lenoble-Liaud (2020): Economie internationale, PUF.

   

  Krugman, Obstfeld and Melitz: international economics

   

  Students will also be required to read articles during the course.

• Macroeconomics II

  Macroeconomics II

  Ects : 3

  Lecturer :
  AXELLE ARQUIE
  LISE PATUREAU
  

  Total hours : 24

  Overview :

  After presenting the stylized facts about the business cycle, the course will study the canonical real business cycle model. Part of the course will be devoted to programming the RBC model and its real extensions using Matlab and Dynare software. In a second step, we will amend the pure RBC setting to introduce nominal price rigidity, based on the insights of the course “Macroeconomics 1” in Semester 1. We will also simulate this canonical Dynamic Stochastic General Equilibrium (DSGE) model’s predictions using Matlab and Dynare and compare the ability of both models to replicate (or not) salient features of the business cycle. The last session will be devoted to study the role of fiscal and/or monetary policies in terms of business cycles stabilization.

  Coefficient : 1

  Recommended prerequisites :

  Macroeconometrics

  Require prerequisites :

  Introduction to Matlab programming, Macroeoconomics I

  Learning outcomes :

  The course will provide students with sound knowledge and understanding of the basis of modern macroeconomic theory of business cycles. After attending the classes, the students will master the fundamental RBC and New Keynesian DSGE models of business cycles. They will also be able to program these models to analyse their quantitative predictions in terms of business cycles features.

  Assessment :

  The final grade will be based on two grades: a mid-term grade (30%) and a final exam grade (70%). The final grade is based on a final written exam (closed-book exam). The mid-term grade is made on the grade obtained on a homework document. Depending on the number of students to follow the course, the home-work document might be made by a team of max. 2 students. For this home work, the student will have to perform a personal analysis of the observed business cycles on a given country/period, and compare the ability of the models studied in class to replicate the main facts. The student will also be assessed on her capacity to have some critical eye on the model’s performances.

  Bibliography-recommended reading

  • Gali, Jordi, Monetary Policy, Inflation and the Business Cycle: An Introduction to the New Keynesian Framework, Princeton University Press (2d edition)
  • King, R., Plosser, C. & Rebelo, S. “Production, Growth and Business Cycles", Journal of Monetary Economics, 1988, vol. 21, pp. 195-232.
  • Gali, J, “Technology, Employment and the Business Cycle: Do Technology Shocks explain aggregate fluctuations?" The American Economic Review, 1999, vol. 89, n.1, pp. 249-271

  Other references will be provided along the course

• Measurement issues with applications to GDP, poverty and inequality

  Measurement issues with applications to GDP, poverty and inequality

  Ects : 3

  Lecturer :
  GABRIELLE FACK
  

  Total hours : 21

  Overview :

  Is GDP a suitable measure of economic and social progress? What makes a distribution of income more or less equal? How to quantify environmental damages?

  This course aims at addressing these questions. It is a methodological course that discusses the measurement of economic and social outcomes. Policies are often designed based on indexes and quantitative objectives, while defining those indexes and outcomes is not always straightforward. In this course, we will discuss both the theoretical and empirical aspects of how to construct outcome variables: how are the conceptual choices made in terms of what is included or excluded from the computation of an indicator, and how each component is valued? Which data are used and do they allow to observe the entire phenomenon we want to measure? How do we translate the theoretical concepts into the data?

  An introductory session will focus on what to be measured and how to measure it. In particular, it will discuss what the potential biases introduced by data choices (what is the source of the data, the size and representativeness of the sample, etc.). It will be followed by topic sessions on GDP, inequality, employment and unemployment, education, and the measurement of phenomenon that cannot be directly observed.

  Coefficient : ECTS: 3

  Recommended prerequisites :

  Statistics (Basic level)

  Graduate Econometrics (M1 mandatory course)

  Learning outcomes :

  This course will allow students to have a critical eye on how socioeconomic indicators are built. It will provide them with some statistical tools regarding the measurement of phenomenon and cover more specific measurement issues in a range of economic and social dimensions. This reflection will allow students to better understand some of the controversial questions that are discussed in the public debate, and to themselves build social and economic indicators.

  This class will be useful to all students, and in particular those who intend to do a PhD dissertation in economics using empirical data, as well as students who plan to work in institutions that produce economic statistics, studies and policy recommendations.

  Assessment :

  Assessment will be based on a presentation (30%), a project (65%) and participation in class (5%). The presentation will consist in presenting in class a research paper where measurement issues are central (30%). Regarding the project, students will be given a list of questions to choose from and will be asked to reflect on which indicator they could build to address this question.

  Bibliography-recommended reading

  A specific reading list with articles provided for each lecture

Open your mind

• Topics in advanced economic analysis

  Topics in advanced economic analysis

  Ects : 3

  Total hours : 18

  Coefficient : 0.5