Program Director :
The Economic Policies & Dynamics track trains economists specialized in the quantitative analysis and evaluation of economic policies and/or the analysis and forecasting of the business cycle. It is an evolution of the Forecasting & Economic Policies track that was in place until 2019-2020.
Students who choose to specialize in economic policy analysis and evaluation are trained to study various economic policies, whether cyclical or structural, sectoral, national or international: monetary, fiscal, labor market, redistribution and social protection, environmental, development, trade, competition, health, housing, energy, financial regulation policies. They learn how to analyze and evaluate quantitatively these policies using structural models and econometric methods, at the micro- or macro-economic scale.
Students who choose to specialize in economic analysis and forecasting deepen their knowledge of time series econometric methods and learn about New Keynesian models of the business cycle, from the theory of these methods and models to their application in practice. They also acquire an in-depth knowledge of macroeconomic data through courses in national accounting and business cycle analysis.
The two main themes of the track, economic policies and economic dynamics, are of course not segmented: all economic policies have dynamic effects, whether temporary or permanent; and, conversely, stabilization policies respond to the dynamics of the economy. Therefore, students are naturally led to acquire a knowledge base common to these two themes during their training, whatever the theme in which they wish to specialize.
The decisions taken by economic agents are part of a complex, fluctuating and uncertain macroeconomic environment, marked by recurring crises and major long-term risks. In this context, the economist is essential for understanding this environment, forecasting its future developments, and assessing the consequences of public decisions being considered. To meet this demand, the Economic Policies & Dynamics track trains economists capable of quantitatively analyzing and evaluating economic policies and analyzing and forecasting the economic environment. The training is essentially based on the mastery of two main types of tools: economic models and econometric methods.
Economic models provide a reading grid and a framework for analyzing economic data, and enable the ex ante evaluation of the effects of economic policies, in particular on the well-being of agents. New Keynesian models, for example, are widely used by central banks and other public institutions to interpret the economic situation and simulate the effect of macroeconomic stabilization policies. The courses of the track are based on different types of models, depending on the nature of the economic policy being studied: microeconomic models, short-term macroeconomic models, long-term macroeconomic models (sustainable development).
Econometric methods are essential for economic forecasting and ex post evaluation of the effectiveness of economic policies. They also make it possible to estimate the parameters of economic models. Depending on the context, and in particular on the nature of the economic policy being studied, they will be micro-econometric (including in particular randomized controlled trials) or macro-econometric (advanced time series) methods. The track will notably train in statistical learning methods and dynamic factor methods, particularly well adapted to the large economic and financial databases available today to public and private actors.
The Economic Policies & Dynamics track emphasizes both the theory and the practical application of these economic models and econometric methods. The applied and practical component actively prepares for the first positions, for which the student will be immediately operational. The theoretical component puts the student’s knowledge and skills on a solid fundamental foundation, which will enable him/her to evolve throughout his/her career.
Graduates can work in public administrations, either after a competitive examination for entry into the public service or under private or public law contracts, such as the French Ministry for the Economy and Finance (the French national institute for statistics and economic studies, the Treasury and Economic Policy General Directorate of the French Ministry, etc.); the statistical departments of other ministries (the French Ministry of Labour, Employment and Integration, the French Ministry for the Ecological Transition, the French Ministry for Solidarity and Health); central banks (the Banque de France, the European Central Bank ); regulatory authorities (the Autorité de contrôle prudentiel et de résolution, the Autorité de la Concurrence); and other public institutions (the Agence française de développement, or applied macroeconomic research centers). In the private sector, opportunities are found in economic forecasting institutes, consulting and economic study firms, and major banks, which often value a first experience in a public administration.
For students wishing to continue their training with a PhD in economics, the track is designed to be taken in parallel with the second year of the Master in Economics (M2) or the PhD Track in Economics at the Institut Polytechnique Paris, with which it shares courses and with which it is complementary. The PhD in Economics allows students to pursue an academic career or in an international organization (International Monetary Fund, World Bank, Organization for Economic Cooperation and Development).