Convert JPG to PDF Online
Total Page:16
File Type:pdf, Size:1020Kb
Contents Academic French L'intérêt démocratique des 4 The year of contracts Corner 34 by Yu Fu Wong primaires par Arthur Dinhof 6 Economics, lawyers and competition policy Professional 36 Interview with the Governor by Ignacio Parot de la Banque de France 8 The art of keeping up with by Dominykas Šliažko and Nhu Nguyen yesterday by Tristan Salmon 38 Business talks Electricity and climate change: troubles are coming. 10 An interview with Susan Athey by Vincent Lim by Maria Paula Caldas and Philip Hanspach Sectorial risk analysis in a bank by José Alfonso Muñoz 15 PhD Research Some advice for your future PhD from 40 Internship reports Pascaline Dupas by Matteo Santangelo 42 Memoir reports 17 Faculty Article 43 Alumni News Development Economics and Industrial Organization by Josepa Miquel-Florensa 44 Alternance report Airbus Spotlight 20 iEconomists On Campus 46 Tirole lectures Machina economicus: a rational mind by Zhuxi Li by Alfonso Muñoz On big data, machine learning, and econometrics 47 Fourth TSEconomist Public by José M. Álvarez Her Excellency The Machine: Atificial intellengence Lecture A change in media landscape and policy making by Alfonso Muñoz by Omar Doghiem No 48 M2 Choice Economics 24 Lost in Translation in the Title by Tristan Salmon and Arthur Hill 54 Junior Etudes 28 The open society and its friends 55 BDE by Philip Hanspach 56 The TsEconomist's teaching 31 Thus spoke the Terminator- On AI awards 2016/2017 and morality Gala pictures by Mahi ElAttar 58 59 Picture Quiz Sources: Airbus shop . Anissa Belgacem . bigthink.com . Cercle des économistes . europe. Remark newsweek.com . Flickr.com . futureoflife.org. i.imgur.com . Mai Nguyen . All the writings in this issue remain the strict nobelprize.org. mjmobbs.com . Paramount Pictures . pnas.org . Pocketfives.com responsibility of their authors and in no way represent the opinions of TSE and its members. Poverty actions.org . rauserbegins.files.wordpress.co. standford.edu . staticflickr. Article refrences are available upon request. com . wikimedia.org . Wikipedia.com Editorial Note The Team The peaceful transition of power Welcome back, readers! As the academic year draws to an end, we are proud to publish our 15th issue, which also marks the five-year anniversary of the magazine. Editorial Board To celebrate the occasion, current and former members of the Editorial Board got together for a celebratory dinner where we shared anecdotes and stories of our Mariam Aounallah time in the magazine. This event reinforced my belief that one should not let its Alicia Bassière university years pass by her, but rather make the most of them. For those looking Saí Bravo to make a positive impact during their last years as students, I encourage you to join The TSEconomist: for the debates, the skills, but above all, the people you Pauline de Villèle meet and the connections you make. Omar Doghiem Selin Göksel The highlight of the semester was our Fourth Annual Public Lecture, where Adam Kristina Hagen Roberts, The Economist business and finance correspondent for Europe, spoke on Farah Hathout how the media is reacting to the changing socio-political landscape. We would Arthur Hill like to thank the administration for their support in organizing this talk, and Adam Roberts for his interesting insights on the topic. Inside the magazine, the Spotlight Victoire Lamarca team has reflected on one of the hottest trends: artificial intelligence. You will Max Langer also find the details of our talk with Susan Athey, 2016 Jean-Jacques Laffont prize Zhuxi Li recipient, during her visit to Toulouse. Vincent Lim Finally, I want my last words as Editor-in-Chief to be of gratitude towards all the Gosia Majewska Nicolas Martínez members I have had the opportunity to work with during these two years at TSE. In particular, to José, Catalina, Philip and Teresa, for all their hard work and time Rose Mebiame devoted to this project. Arthur and the team that takes over is an excellent choice David Montoya that will undoubtedly continue to improve the magazine. José Alfonso Muñoz Marina Sanchez del Villar Valeria Plata Editor-in-Chief Roxana Pozo Tristan Salmon As a new board has just been elected, The TSEconomist is celebrating its five- Anna Schulze Tilling Fernando Stipanicic year anniversary. We have seen how much each new team has contributed to the Andres Villareal improvement of the magazine over the years. And the recent guest speaker to our annual conference, Adam Roberts, gave us a glimpse of what we should aspire for. Section Editors With the end of the academic year, a part of our team is leaving us. I would like to Mahi ElAttar thank them for the dedication and the enthusiasm they brought to our magazine. Annie Krautkraemer The past year has been full of novelties, and as the final touches are being put to Paul Montesinos this issue, I would like to acknowledge the outgoing board members’ commitment Lars Nordgreen to make our magazine better. Moheb Said Anneliese, Tristan, Kristina, Nicolas, Sai, and I are thrilled to take on the challenge Photographer that is leading the The TSEconomist. We are keen to carry on the good work and bring our collective touch to the magazine. Next year we want to bring the magazine online to keep in touch with our readership, as well as to have a greater impact on campus life through more inter-association events. Executive Board The ever growing size of the team in recent years has been the driving force behind the development of the magazine, and we are eager to hear from the new Marina Sánchez del Villar people and their ideas. If you want to write, organise, and foster debate about Editor-in-Chief subjects you are passionate about and shape campus life, contact us and join the team. José M. Álvarez Deputy Editor Arthur Hill Maria Teresa Aguilar Rojas Incoming Editor-in-Chief Head of Design Contact us: Philip Hanspach Head of Organization [email protected] Erratum: In our previous issue (issue #14) the www.tseconomist.com Catalina Salas name of Julie Lassebie, author of God ensures those Head of Communications who pay?, along with Eva Raiber, was not included New office: MD303 in the printed version of the magazine on page 15. > Academic Academic < The year of contracts by Yu Fu Wong ast year marked a milestone in the intact. In employment agreements, en- public economics. For an illustration, we Ldevelopment of contract theory. terprises will compensate us for our la- shall take the example of the ice-cream The Nobel Memorial Prize in Economic bour upon satisfactory performance. For reward scheme. Sciences 2016 was awarded jointly to the blessed ones, the bride and groom This contract between mother and son Oliver Hart and Bengt Holmström, “for promise to abide by certain vague code is incredibly simple. Both the condi- their contributions to contract theory.” of honour, contingent on each other’s tions and outcomes are quite vague as In the same year, the John Bates Clark behaviour. For the less fortunate ones, well. Hart argues that such contracts are Medal, which acknowledges to econo- nothing is more vivid than clicking on popular because it is costly to specify mists under the age of forty, was be- “I agree” in order to use the latest apps the definite allocation for all potential stowed upon Yuliy Sannikov for his new and gadgets without reading the forty- observations. While it may be possible methodologies in game theory and page small print, which now comes into to devise a complex scheme to provide contract theory. It was no coincidence – legal effect. Loosely speaking, a contract incentives more efficiently, the parties the two most prestigious awards in eco- is an arrangement which specifies some seek simple, incomplete, sub-optimal nomics went to them, in recognition of actions or allocations conditional on (constrained-optimal) ones in face of the growing prevalence of the theory of some observations in the future, usually the staggering transaction cost. In our incentives in the last thirty years. As the between two parties. case, it is almost impossible to explain to faculty at TSE have also made remark- We can gain many insights studying a child the amount of ice-cream he will able progress in the field, it is of interest one common type of informal contract get as a function of his behaviour, which for fellow students to understand the in our early years. It usually reads, “if is defined formally and precisely in all basics of contract theory and the accom- you behave yourself, you will get ice- possible situations. plishments of the three laureates. cream.” When the young boy behaves, With such simple contracts, the parties Contracts are ubiquitous in our daily the mother offers ice-cream, with the may not be able to commit to the plan. life. Property owners rent us their apart- converse implicitly understood. It is am- On the one hand, if the child does not be- ments, conditional on paying the rent biguous how well the boy has to behave have, the soft-hearted mother may offer punctually and keeping the furniture to be rewarded and, in that case, how a smaller portion to her weeping child, much ice-cream the mother will give in despite their original agreement. On the return. When the child does not meet other hand, even if the child behaves, the standard, he may bargain for a small- the mother may not be able to uphold er portion; even when he does, there her end when the fridge is empty. Hart might not be any left in the fridge. Some shows that the temptation of renegotia- smart kids may realize factors other than tion and the transfer of idiosyncratic risk their behaviour in this reward scheme, will undermine social surplus in general.