Quantitative Economics - 1st year of master's degree

L'année de formation

Fundamental Mandatory Courses

  • Mathematical and Statistical tools

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    Ects : 3
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    Compétence à acquérir :
    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.

    Description du contenu de l'enseignement :
    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.

    Enseignant responsable :

    • JEAN-PHILIPPE LEFORT

  • Microeconomics I

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    Ects : 6
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    Compétence à acquérir :
    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 the mathematics involved.

    Description du contenu de l'enseignement :
    This is an advanced microeconomics course. It will provide a formalized exposition of the optimal consumption and production decisions by consumers and firms, which determine the allocation of scarce resources. It will focus on 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 concepts and techniques developed in the course can be used to examine the behaviour of individuals in other economies, e.g. where the intervention of the state is required or in economies with other institutional frameworks (different market or informational structures), as it will be considered in the microeconomics course in the second semester.
    The objective of the course is to provide a comprehensive exposition of modern economic theory on 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 strong interactions between markets will then be taken into account in the analysis of general equilibrium. Beginning at an intermediate level, the course will present a more formalized exposition of the concepts, preparing students for a more advanced doctoral course.

    Enseignant responsable :

    • MARIA LUISA RATTO

  • Macroeconomics I

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    Ects : 6
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    Compétence à acquérir :
    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.

    Description du contenu de l'enseignement :
    The course is organized in two parts. The first part focuses on long-run economic growth. After presenting the stylized facts about long rune economics 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 (Romer, 1990), and the creation/ destruction model (Aghion& Howitt, 1992). The second part is devoted to the analysis of macroeconomic fluctuations. After presenting the stylized facts about the business cycle, the course will study the canonical real business cycle model. The role of price rigidities in accounting for business cycles will be discussed by analyzing the New Keynesian Phillips curve model.
    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.

    Enseignant responsable :

    • ANNE EPAULARD
    • LISE PATUREAU

  • Econometrics I

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    Ects : 6
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    Compétence à acquérir :
    Practical skills will be acquired through the modelling of economic time series with econometric software (gretl, matlab). After having attended the classes, the students will master the main tools of the modeling of time series and be able to run an empirical work by themselves.

    Description du contenu de l'enseignement :
    This course will provide the fundamental tools in macroeconometrics. It starts providing the basic knowledge on the modelling of univariate time series. We will present several statistical tests used to uncover their features and the main models used to represent their behaviours. The course will also introduce to forecasting. We will then present the modelling of multivariate time series with VAR models. We will then give an introduction of the structural analysis which can be run through VAR models.
    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 times series data.

  • Game theory

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    Ects : 6
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    Compétence à acquérir :
    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.

    Description du contenu de l'enseignement :
    The content of the course can be divided in two parts. First, we will study strategic games in a static context: Pure and mixed strategy Nash Equilibrium, correlated equilibrium; Definition of a Bayesian game, Bayesian Nash equilibrium; Dominant/dominated strategies and rationalizability. Second, we will study the multistage games: Subgame perfect equilibrium; Repeated games; Perfect Bayesian equilibrium.
    The objective of the course is to give some fundamental background in interactive decision making and its applications.

    Enseignant responsable :

    • MARION OURY

  • Data Management and Programming

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    Ects : 3
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    Compétence à acquérir :
    After having attended the class, 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.

    Description du contenu de l'enseignement :
    After an overview the main tools of public economic analysis, the course will present the main market failures and discuss government intervention : taxation, 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.
    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.

    Enseignant responsable :

    • SIDARTHA GORDON
    • GABRIELLE FACK

Fundamental Mandatory Courses

  • Microeconomics II : Public economics

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    Ects : 6
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    Compétence à acquérir :
    After attending the classes, the students will have acquired a deep understanding of the workhorse New Keynesian model and how it can be used to tackle issues related to unemployment and financial frictions.

    Description du contenu de l'enseignement :
    The course investigates monetary policy issues in two different contexts. First, in the follow-up of Macroeconomics I, we will study how to extend the NKPC model to nominal wage rigidity and unemployment issue. A second topics is devoted to the modelling of credit market frictions in the canonical model through the financial accelerator models.
    The objective of the course is to deepen the modeling of the determinants of short-run fluctutuations, by putting emphasis on the role of labor market frictions and financial frictions, and to study the relevant implications for monetary policy.

  • Industrial Organization

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    Ects : 6
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    Compétence à acquérir :
    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.

    Description du contenu de l'enseignement :
    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.

    Enseignant responsable :

    • ANNA CRETI
    • JEROME MATHIS

  • Macroeconomics II

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    Ects : 6
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    Compétence à acquérir :
    After attending the classes, the students will master the two core models of modern macroeconomics and will be able to use them in view of addressing the question of the efficiency and the design of public intervention (monetary, fiscal policies, sovereign debt) from a macroeconomic viewpoint.

    Description du contenu de l'enseignement :
    The course investigates the question of public intervention from a macroeconomic viewpoint, in the follow-up of Macroeconomics I. It is built in two parts. The first part of the course is an introduction to overlapping generations (OLG) model. The reduction of public debt, the financing of social security, the taxation of capital are at the heart of the macroeconomic policy debate. The OLG model provides a convenient framework to study the effects of macroeconomic policies such as national debt or social security. The second part of the course discusses the efficiency of monetary and fiscal policies as well as the mechanics and sustainability of the public debt in the neo-classical Ramsey framework.
    The main objective of this course is to familiarize students with some key issues related to macroeconomic policy that can be addressed in the two seminal work-horse models of modern macroeconomics, the OLG model and the Ramsey model. applications to macroeconomic policy.

    Enseignant responsable :

    • AUDREY DESBONNET
    • RICHARD DUTU

  • Econometrics II

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    Ects : 6
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    Compétence à acquérir :
    This course will allow students to master the main micro-econometrics techniques for probability models, instrumental variables and temporal data and they will be able to critically analyze applied work that employs these types of estimators.

    Description du contenu de l'enseignement :
    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 bises (instrumental variable estimator and 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.
    The main themes are presented under a theoretical perspective, accompanied by empirical applications on Stata.
    The following topics will be addressed:

    Sources of bias for OLS
    Instrumental variables
    Temporal models (first difference, random effects, fixed effects)
    Difference-in-differences
    Linear Probability models
    Models with qualitative dependent variable (Probit, Logit)
    Selection models (Tobit, Heckman)

    Enseignant responsable :

    • CLEMENTINE GARROUSTE
    • OLIVIA BERTELLI

  • Database and Stata programming

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    Ects : 3
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    Compétence à acquérir :
    After having attended the classes, the students will be able to describe and analyze phenomena of interest contained in cross-sectional and panel datasets by using Stata. They will be able to conduct econometric analysis concerning probability and temporal models with graphs and tables formatted in a professional manner.

    Description du contenu de l'enseignement :
    The course presents the Stata coding language for applying micro-econometrics techniques. In the first part of the course, the main Stata features are explained by focusing on the estimation of econometric models with qualitative variables and selection models. In the second part of the course, students will learn how to analyse temporal and panel data with Stata and how to estimate temporal models, such as random effects, fixed effects and double differences. Moreover, the course will provide students with the appropriate knowledge for reproducing their econometric analyses in a professional format.
    The main objective of this course is to provide students with Stata coding skills for describing and analysing cross-sectional and panel data and for estimating probability and temporal econometric models.

    Enseignant responsable :

    • OLIVIA BERTELLI
    • CLEMENTINE GARROUSTE

Optional Block : Choose 1

  • Public policy

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    Ects : 3
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    Compétence à acquérir :
    After attending the course, the students will master the standard theories of labour supply and labour demand as well as the issues raised by their empirical analysis. They will also be able to analyse the effects of labour taxes and the formation of wages. They will discover how health economics mixes several fields in economics to address the main health policy questions: microeconomics, industrial organization, public economics, equity and social choice.

    Description du contenu de l'enseignement :
    The course investigates the question of public intervention from a microeconomic viewpoint, by shedding light on two particular areas of public policy, the labor market and the health system. In a first part, we will study the stylised facts, theories and empirical analysis of labour supply, labour demand and wages. The second part of the course will give the basics in Health Economics: Structure of a health care system, Health expenditure growth, role of ageing, demand for care and supply-induced demand, hospital regulation.
    The objective of the course is to get students familiar with the basics of public policy intervention in two major areas: the labour market functioning and the health system organization.

    Enseignant responsable :

    • EVE CAROLI
    • BRIGITTE DORMONT

  • Advanced Industrial Organisation

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    Ects : 3
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    Compétence à acquérir :
    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.

    Description du contenu de l'enseignement :
    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.

    Enseignant responsable :

    • ANNA CRETI

  • International Trade: Theory and Policy

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    Ects : 3
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    Compétence à acquérir :
    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.

    Description du contenu de l'enseignement :
    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 analyse modern trade patterns (including intra-branch trade, offshoring, trade in intermediates, services trade), 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. It will also discuss alternative forms of imperfect competition (oligopolistic competition) and their consequences for trade. It will then cover political economy models of trade, which aim to explain the formation of trade policy as a result of divergent domestic interests. Finally, 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.

Formation année universitaire 2020 - 2021 - sous réserve de modification


Modalités pédagogiques

All courses in the first year of the Master in Quantitative Economics are taught in English and in lecture format. In some cases, part of the session may be devoted to correcting exercises and/or data processing data. The first semester starts in early September with by a 10-day refresher training covering the mathematical and statistical tools’ basics. The first semester then goes on over 12 weeks, with foundational lessons in economics (Macroeconomics I,Microeconomics I,Game Theory), combined with two courses on data processing and analysis, MacroeconometricsandData Management and Programming. Students will be introduced to the Matlab, Dynare and Python software. All courses are mandatory, and amount to 30 ECTS credits. Courses and final exams end in December of the academic year.

The second semester expands on the lessons from the first semester. In terms of theory, this involves integrating market failures and frictions into economic analysis, on both a microeconomic and macroeconomic level (Microeconomics II,Industrial Organization, andMacroeconomics II). In terms of quantitative methods, instruction focuses on techniques for analyzing individual and qualitative data, making use of the Stata software (Microeconometrics IIandDatabase and Stata Programming). In addition to these required courses, students choose one among three optional courses (Public Policy,International Trade, andAdvanced Industrial Organization). Each student must earn 30 ECTS credits by the semester's end. Courses are spread out over 12 weeks from January to April, and exams are held in early May. Students are then strongly encouraged to pursue an internship, although this will not qualify for ECTS credits.


Stages et projets tutorés

Students are not required to do an internship during their Master's in Quantitative Economics first year. However, you are strongly encouraged to pursue one after the second semester’s exams, although this will not be rewarded with ECTS credits.


 

 

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