Master in Economics

managing institutions

Ecole Polytechnique (year 1)

ENSAE (year 2)

First Year (M1)

Outline of the First Year: M1

S1 First Semester
ECO 550 - Microeconomics 1: 6 ECTS.
ECO 551 - Macroeconomics 1: 6 ECTS.
ECO 552 - Econometrics 1: 6 ECTS.
1 Elective course: 2 ECTS.
S2 Second Semester
ECO 560 - Microeconomics 2: 6 ECTS.
ECO 561 - Macroeconomics 2: 6 ECTS.
ECO 562 - Econometrics 2: 6 ECTS.
1 Elective course: 2 ECTS.

ECO 511 - Project in Applied Economics: 8 ECTS.
Internship: 12 ECTS.

List of courses

Beginning of September

Location: HEC, Jouy-en-Josas

Preparatory course in Mathematics and Probability

Mathematics, Probability, and Optimization36 hours
Nicolas Vieille

– Basic calculus
– Linear algebra
– Basic probability theory
– Dynamic optimization.

Preparatory course in Econometrics

Introduction to Stata8 hours
Omar Sene

The objective of this course is to allow participants to be able to work and conduct their own empirical analyses with the statistical software STATA, which is one of the leading programs used by researchers in econometrics.

The course will be taught in a very applied way using real-world datasets, covering basic commands, data management, data manipulation, graphs, statistical analysis, regression analysis (cross sectional data, time series, panel data, and qualitative data) and basic programing (more specifically loops).

Over the whole year

Project in Applied Economics - ECO 511 8 ECTS

Students must work in groups of 2 or 3. They should rely on a statistical software, such as Stata, to apply econometric methods to a dataset. This work leads to the writing of a small dissertation and to an oral presentation.

Mandatory courses: First term (S1)

Microeconomics I - ECO 550 6 ECTS

Individual decision-making and market equilibrium45 hours
Emmanuelle Taugourdeau, Tristan Tomala

– Choice theory and introduction to welfare economics
– Consumer theory
– Social choice (preference aggregation and manipulability)
– Producer theory
– Choice under uncertainty (expected utility, risk aversion)
– General equilibrium, fundamental welfare theorems
– Asset markets and general equilibrium under uncertainty
– Externalities and public goods
– No trade theorem, rational expectations.

Macroeconomics I - ECO 551 6 ECTS

Economic Growth45 hours
Pierre Cahuc, Alessandro Riboni

- Neoclassical growth model
- Public policies in the neoclassical growth model
- Structural transformation
- Inequality, political economy of growth
- The overlapping generations model
- Public policies and bubbles in the overlapping-generations model
- Product variety model
- Schumpeterian growth.

Econometrics I - ECO 552 6 ECTS

The Linear Regression Model and Extensions45 hours
Xavier d'Haultfoeuille, Thierry Kamionka

Simple and multiple regression analysis: estimation, inference and asymptotic analysis:
- Derivation of the OLS estimator
- Student t tests and F tests under normality of the residuals
- Confidence intervals
- Consistency and asymptotic normality
- functional forms and specifications
- Heteroskedasticity
- Clustering
- Robust inference
- Weighted least square estimation
- Basic Panel Data Models
- Difference in differences; First difference estimation
- Instrumental variable estimation
- Two-stage Least Squares estimation
- Inference, weak and invalid instruments
- Simultaneous equations
- Exogeneity and over-identification tests.

Mandatory courses: Second term (S2)

Microeconomics II - ECO 560 6 ECTS

Strategic Interactions and Information45 hours
Yukio Koriyama, Olivier Gossner, Pierre Picard

– Normal form games, pure and mixed strategies, equilibrium concepts (dominance, rationalizability, Nash)
– Imperfect competition (Cournot, Bertrand, Hotelling)
– Extensive form games with perfect information, backwards induction
– Extensive form games with imperfect information (information sets), normal form representation
– Bayesian games, auctions, adverse selection, signaling, screening
– Equilibrium refinements (Perfect Bayesian equilibrium, sequential equilibrium)
– Social choice and introduction to mechanism design
– Contract theory, principal agent models, risk sharing.

Macroeconomics II - ECO 5616 ECTS

Business cycles45 hours
Jean-Baptiste Michau

– Traditional macroeconomics: The IS-LM AD-AS model
– Consumption
– Investment; The ramsey model
– Determination of the price level
– Real business cycle theory
– The new Keynesian framework
– Asset pricing; The Aiyagari model
– Search models of the labor market
– International macroeconomics
– The Great Recession.

Econometrics II - ECO 562 6 ECTS

Nonlinear, Qualitative Data, and Panel Methods45 hours
Arne Uhlendorff, Anna Simoni

– Extremum Estimators 1st part: M-Estimators (Maximum Likelihood, Nonlinear Least squares)
– Extremum Estimators 2nd part: GMM
– Hypothesis Testing: Wald, Lagrange Multipliers, Likelihood Ratio Statistics
– Instrumental Variables, 2SLS, Multiple-Equation GMM (if time)
– Dynamic Panel Data: Instrumental Variables and GMM
– Binary Choice Models
– Multinomial and Ordered Choice Models
– Non-linear Panel Data Models
– Censored Regressions
– Duration Models.

Elective courses: First term (S1)

Labor Economics – ECO 571 – Location: Ecole Polytechnique, Palaiseau 2 ECTS

Labor Economics and Human Resources20 hours
Pierre Cahuc, Raicho Bojilov

- Labor supply 1: Stylized facts and static theory of labor supply
- Labor supply 2: Inter-temporal labor supply
- Labor demand 1: Static labor demand
- Labor demand 2: Dynamic labor demand
- Labor market equilibrium.

Envrionmental Economics – ECO 572 – Location: Ecole Polytechnique, Palaiseau 2 ECTS

Environmental Economics20 hours
Jean-Marc Bourgeon

This course explores some of the most important areas of environmental economics and sustainable development in a framework that integrates economic growth, trade, and public economics. Special emphasis is given to sustainable use of natural resources, global pollution problems, and decision making with irreversibility. It gives the rational for regulations and, more generally, explains the role of government in mitigating the negative consequences of market failures, and its incentives to do so in different environments.

- Cost-benefit analysis of environmental problems
- Environmental regulations
- Optimal management of natural resources
- Environmental Risks
- Economics of Biodiversity.

Macroeconomic Policy – ECO 573 – Location: Ecole Polytechnique, Palaiseau 2 ECTS

Macroeconomic Policy20 hours
Hubert Kempf

The course presents a broad analysis of economic policy issues. It covers the tools and main issues of macroeconomic policy. Then, monetary policy instruments and strategies, fiscal policy and public debt issues are presented and discussed. The aim of the course is to allow students to decipher the current debates and policies followed in advanced economies.

European Economics – ECO 575 – Location: ENS Paris-Saclay, Cachan 2 ECTS

European Economics20 hours
Caroline Vincensini

This course focuses on the main steps of European economic integration, trade integration, and monetary integration, from a double historical and economic perspective. In each case (customs union, common market, monetary union, recent developments in the monetary union), the objective is first to replace European integration in its historical context (economic and political history), and second to study the tools of economic theory that are relevant to analyze each successive step.

The course will thus deal with approaches such as comparative political economy and European economic history on the one hand, the microeconomics of a customs union, new trade theories and commons markets, the optimum currency area approach, the post-Keynesian approach to the monetary union, the time inconsistency literature, etc., on the other hand.

Development Economics – ECO 576 – Location: Ecole Polytechnique, Palaiseau 2 ECTS

Development Economics20 hours
Thomas Vendryes

The objective of this course is to provide a presentation of the phenomenon of economic development, and an introduction to development economics. After a general depiction of the process of development, the main theories and schools of thought that structured the related research field are presented. Specific topics are then studied, mainly through classical or contemporary research papers: on the micro side, health and education, and on the macro side, institutions.

Elective courses: Second term (S2)

Competition Policy – ECO 580 – Location: Ecole Polytechnique, Palaiseau 2 ECTS

Competition Policy18 hours
David Sevy

The course gives an overview of the economic concepts, theoretical approaches and quantitative methods used in the main areas of competition policy: restrictive agreements, abuse of dominance and merger control. The aim of the course is to demonstrate how the economic approach can contribute to the application of competition law. The course focuses on competition policy applications in French and European cases, but it can also be useful to theory-oriented economists interested in real markets or for students who want see a legal field where microeconomic principles are applied.

– Introduction to the theoretical and institutional framework of competition policy
– Market power and relevant market
– Abuse of dominant position 1
– Merger control 1
– Cartel and information exchanges
– Merger control 2
– Abuse of dominant position 2 (high-tech sectors)
– Vertical restraints
– New frontiers of competition policy (big data, privacy ...).

History of Economics since 1945 – ECO 581 – Location: ENS Paris-Saclay, Cachan 2 ECTS

History of Economics since 194520 hours
Philippe Fontaine

This course considers the increasing significance of economics within the social sciences after the Second World War. It points to historical transformations that made it possible for economists to present theirs as a discipline that could free itself from value judgments. Special attention is given to economists’ war service, the expansion of higher education, foundation patronage and cross-disciplinary research ventures. The course shows that much can be learned about today's economics from identifying the historical reasons for presenting economics as a special social science. Another dimension of the course centers on the writing of the history of recent economics by noneconomists.

Current Macroeconomic Issues – ECO 584 – Location: Ecole Polytechnique, Palaiseau 2 ECTS

Current Macroeconomic Issues20 hours
Benoît Mojon

The purpose of this class is to cover monetary and financial economics through the institutions that create and manage money, how monetary policy interacts with the business cycle and how it is transmitted through the financial system.
The treatment of these "long standing" issues will be anchored in the analysis of recent and current events, including monetary policy in the OECD countries since the 1970s and the ongoing financial and sovereign debt crisis in the US and world wide in 2008 and the euro area since 2010. The exercises will lead students to become familiar with macroeconomic and financial time series data.

– A simple New Keynesian AD-AS model
– The “pre crisis” dominant monetary policy doctrines
– The transmission of monetary policy
– The liquidity trap
– Banks and the central bank
– Financial cycles and crises
– Financial regulation
– The euro area 2010-2012 crisis.

Microeconomics for Public Economics – ECO 585 – Location: ENS Paris-Saclay, Cachan 2 ECTS

Microeconomics for Public Economics20 hours
Emmanuelle Taugourdeau

This course provides an introduction to the main public economic issues: social welfare, public choice theory, externalities, public goods, and taxation. It recalls the classical theory of market failures due to externalities and public goods and derives the main results from the public choice theory. A large part is devoted to the economic theory of taxation. The course contains rigorous mathematical tools and handles the microeconomic tools used in the public economic theory. To go further, particular attention will be devoted to the tax evasion and fiscal federalism issues.

Research internship: Third term (S3)

Micro ECO 591, Macro ECO 592, Finance ECO 593

During the third term, students must complete a research internship of at least 16 weeks. The internship must be either related to micro (ECO 591), to macro (ECO 592), or to finance (ECO 593).

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