ENSAE Paris - École d'ingénieurs pour l'économie, la data science, la finance et l'actuariat
ENSAE Paris - École d'ingénieurs pour l'économie, la data science, la finance et l'actuariat
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Issues and Methods in Contemporary Economics

ECTS:
1.5

Course Hours:
12

Tutorials Hours:
0

Language:
French

Examination Modality:
CC

Objective

This course introduces students to the key issues and methods in contemporary economics. At each session, a group of students critically presents a topic in contemporary economics. The objectives are multiple:

  • Understand the difference in scientific status between an op-ed in a newspaper and a research article (published in an academic journal)
  • Know how to distinguish between an economist, a political figure, and a lobbyist
  • Construct arguments grounded in economic theories or findings

Planning

The topics proposed in 2025-2026 were as follows:

  • Do we worry too much about inequality? Recent works by well-known economists (Banerjee and Duflo 2020, Milanovic 2019, Atkinson 2015, Piketty 2013) have brought the issue of economic inequality—whether at the national or global level—back to the forefront of economic and political debate. But why do we worry about inequality in the first place? Is it legitimate to make it such a widely publicized subject of analysis? Is focusing on reducing inequality useless, or even harmful, to society, or is it, on the contrary, relevant and beneficial? These questions are not addressed the same way by all economists.
  • Should high incomes be taxed very heavily? In 2012, the exceptional contribution on high incomes (CEHR) was introduced in France. It consists of an additional tax (of 3 to 5%) for taxpayers whose reference taxable income exceeds €250,000 for single filers, and €500,000 for couples filing jointly. The introduction of this tax, presented as temporary, reignited the debate over taxing the highest incomes. Is it advisable? What are the advantages and risks of this type of taxation? How does the economic literature address this question, both theoretically and empirically?
  • Should capital be taxed? The recent transformation of France's wealth tax (ISF) into a real estate wealth tax (IFI), along with the introduction of a flat tax on capital income (the "prélèvement forfaitaire unique"), sparked extensive debate in France over the taxation of capital. Should capital be taxed at all, or should only labor income be taxed? Should the stock of capital be taxed, or only the income it generates? Should capital (whether stock or income) be taxed progressively? The U.S. presidential race, with candidates Sanders and Warren proposing a "wealth tax," also revived this debate in the United States. There are many questions surrounding capital taxation, and students may choose to focus on one or more of these angles.
  • Should the minimum wage be raised? In 2016, the governors of New York and California decided to raise the minimum wage, gradually bringing it to $15 (up from $9 in New York State and $10 in California), and Democratic candidate Joe Biden pledged a similarly sized increase if elected. The question of whether a minimum wage should exist, and how often it should be raised, generates much debate in the United States, but also in France, where the automatic indexation of the SMIC (minimum wage) is regularly criticized as either excessive or insufficient. This topic will examine the theoretical arguments and empirical findings that shed light on the advantages and drawbacks of having a minimum wage, and of raising (or lowering) it.
  • Does migration lead to a deterioration in the situation of natives?
  • The gains from migration and the decision to migrate
  • What are the effects of climate change on health?
  • How can behaviors be adjusted?
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