K6ET 2020 - Applied Economics of the Urban Environment*

he course is an introduction to applied urban economics. It will provide an introduction to economic reasoning applied to urban affairs. Core concept of economic reasoning, from residential choice to the developer economics will be presented. Spatial sorting and its consequences for segregation will be introduced. A strong emphasis will be put on empirics and data utilisation. Transition issues will be only presented as applications of the course and are not central to the course. First, the course will review the main theoretical models (Von Thünen, Hotelling, Alonso Muth, Krugman-Fujita), with some further development on the Alonso-Muth model. The empirics of each theoretical family will be studied, with some focus on the different estimation strategies. A specific attention will be given to the estimation of causal effects. Most of the models and tools are “main-stream” as they are needed to dialog with urban economists, policy makers and urban planners. However, as far it is possible, a critical assessment of those tools will be presented with some insights on alternative approaches. An application to Ile de France will be studied in greater detail. Data available for this large French city and manipulation of tools used for assessing transportation systems will be presented and used by students. Price data will then be used to conduct some empirical analysis, using advanced techniques such as machine learning. A case study on La Rochelle or the métropole of Aix-Marseille will demonstrate the use of those tools to address some issues of sustainability, by showcasing a carbon evaluation of daily mobility. Study of sustainability is not the main goal of the course, as understanding the economic concept is a prior to deal with sustainability. However, as much as possible, the sustainability question will be addressed in relation with the tools presented. The aim of the course is to push students toward data analysis for which theoretical tools are a prerequisite. Without being finally a producer of empirical analysis, students will be able at least to be informed readers of such analysis.

Xavier TIMBEAU

Cours magistral seul

English

Note: the course is accessible to students with some minimum background in economics. Some familiarity with the notion of utility function, prices and equilibrium on an economic market will be helpful. Some extra session can be set up for students in need to catch up. Mathematical tools (such as derivative, fixed point, integral, differential equations) will be (lightly) used during the course, insisting on the intuitions. Some rudiment of statistical analysis will also be used. However, evaluation will not be based on the use of mathematical and statistical tools.

Spring 2024-2025

Evaluation will be twofold : 1. Group presentation (30%) and participation (10%) to presentation, discussion and during the course will be evaluated. 2. A group or individual assignment (60%). The first option is a individual review of a paper or a book or a report or a case study. That can be the extension of papers or case studies presented during the class. Second option will be an individual or group research or case study work, directed during the semester. The expected final outcome will be a presentation, or a report and some empirical work is expected. The frontier between individual and group is related to the ambition and the amount of original work conducted. For research work, group sessions will be held to guide and monitor the research work. Data and computing infrastructure will be made available according to the needs of the research. R/RStudio is the main tool we will be using Research projects may demand some technical (computer, data, econometrics, reporting) work.