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# Cours scientifiques - ECO550B : Microeconomics and Statistics for Public Policy

## Descriptif

PART 1: Microeconomics

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 theoretical models. The course contains rigorous mathematical tools and handles the microeconomic tools used in the public economic theory.

List of tems (for 12h)

1. Introduction to public economics (basics on standard microeconomics + market failure and public intervention) : 3h
2. Social choice and introduction to vote : how to aggregate preferences ? 3h
3. Externality (taxes, pollution permits, Coase Theorem) : 3h
4. Public goods and taxation (incidence + deadweight loss): 3h

Part 2 Statistics

This course introduces the notion of statistical models. It develops the basic principles and concepts of estimation and testing within an asymptotic framework. These principles will be developed in particular on the maximum likelihood estimator and in the context of the multiple linear model, whose use is central in econometrics.

At the end of this course, students should be able to

• Define and use statistical vocabulary (population, observation, sample, etc.)
• Model a statistical problem
• Calculate estimators of moments, maximum likelihood and ordinary least squares
• Describe the asymptotic behavior of these estimators
• Construct tests and interpret their decisions
• Give the level and power of a test.

Outline

1. General principles - The aims of statistics, the various approaches, the types of statistical models (parametric, semi- and non-parametric). Descriptive Statistics for univariate and bivariate data.
2. Estimation - Estimation problem. Asymptotic estimation: maximum likelihood, moments method, ordinary least squares.
3. Hypothesis testing - Neyman-Pearson approach (confidence region, power, level, risks). Simple tests, Neyman-Pearson lemma. Student's t-test. Asymptotic tests (Wald, Score, likelihood ratio). Goodness-of-fit tests (chi-squared, K-S).

References :

Wasserman, L. (2004). All of statistics: a concise course in statistical inference (Vol. 26).

New York: Springer.

Casella, G., & Berger, R. L. (2021). Statistical inference. Cengage Learning.

### domaines Saclay

ODD 1 Pas de pauvreté, ODD 6 Eau propre et assainissement, ODD 11 Villes et communautés durables, ODD 16 Paix, justice et institutions efficaces, ODD 8 Travail décent et croissance économique.

### Format des notes

Numérique sur 20

Littérale/grade réduit

## Pour les étudiants du diplôme MScT-Data and Economics for Public Policy (DEPP)

Le rattrapage est autorisé (Max entre les deux notes)
L'UE est acquise si note finale transposée >= C
• Crédits ECTS acquis : 4 ECTS

La note obtenue rentre dans le calcul de votre GPA.