Topics in the French Economy - Institute of French Studies

TOPICS IN THE FRENCH ECONOMY
Course number : G46. 2910
Wednesdays 9:45 - 12:15
Fall 2004
Pascaline Dupas
Institute of French Studies
New York University
(212) 998 8747
[email protected]
Course Description:
This course will explore the economic and social challenges facing contemporary France as a result of
demographic change, European integration and globalization. We will consider how high unemployment,
job insecurity, and mounting social and economic inequality have called into question the prevailing French
systems of income redistribution and social protection. And we will examine how policy makers have tried
to reform key elements of the “welfare state” (pensions, social security, healthcare) and how they have
addressed the problems of unemployment and socio-economic exclusion. We will then consider how
economists, sociologists and other critics and intellectuals have responded to the policies and proposals that
the different political actors have advanced, both at the national and European levels. The course as a whole
aims both to give students a basic understanding of the contemporary French economy and to introduce
them to the conceptual framework of modern political economy. There are no prerequisites, though the
course assumes a basic knowledge of the political history of nineteenth- and twentieth-century France.
The quality of the course will depend on the quality of the discussion, which depends on everyone reading
the selected texts and participating in class. Grading is as follows: class participation (30%), one
presentation (30%), and the final term paper (40%). The topics and format of the term paper will be worked
out in discussions.
DRAFT SYLLABUS
Chapters of the following books will be read during the semester. Photocopies will be handed out the week
before the reading is due.
Students are encouraged to read the * books in their entirety. The books can be purchased at the bookstore
or on the internet. Most of them can also be borrowed from Bobst, and the IFS library has non-circulating
copies.
* A. Alesina and E. L. Glaeser, 2004. Fighting Poverty in the US and Europe: A world of Difference.
Oxford University Press.
* Daniel Cohen,1995. The Misfortunes of Prosperity. MIT Press.
Thomas Piketty, 2002. L'économie des inégalités, Collection "Repères", La Découverte.
* Gosta Esping-Andersen, 1990. The three worlds of Welfare Capitalism. Princeton University Press.
* Pierre Rosanvallon, 2000. The New Social Question: Rethinking the Welfare State, Princeton University
Press.
Joseph Stiglitz, 2000. Economics of the Public Sector, 3rd ed., W. W. Norton.
Barbier J.-C., Gautié J. (dir.), 1998, Les politiques de l’emploi en Europe et aux États-Unis. PUF.
Données sociales, la société française, Paris : Insee, 2002. 654 p. (Collection Références. ISSN 0758-6531)
Jacques Commaille, Pierre Strobel, Michel Villac, La politique de la famille, La Découverte, Repères,
2002, Chap. 1-3
SECTION 1. THE FRENCH ECONOMY TODAY: AN INTRODUCTION TO CURRENT
DEBATES IN POLITICAL ECONOMY
Week 1 (Sep. 8)
Introduction
Week 2 (Sep. 14) ***special day: on TUESDAY***
Unemployment and Precariousness
Daniel Cohen. The Misfortunes of Prosperity. MIT Press. Chapters 1 and 2, pp. 3-58.
The Economist. Survey: France. "A new kind of solidarity". 7p.
« For Richer », Paul Krugman, The New York Times, 20/10/2002, 9p.
Week 3 (Sep. 22)
Inequality and Redistribution
« Inequality and Happiness: are Europeans and Americans different? », Alesina, Di Tella, MacCulloch,
NBER 9198, 37p. (you can skip the technical sections).
A. Alesina and E. L. Glaeaser. Fighting Poverty in the US and Europe. Chapters 2,3,7.
« The Death of Horatio Alger », Paul Krugman, The Nation, January 5, 2004
SECTION 2: THE FRENCH WELFARE STATE: BETWEEN INSURANCE AND SOLIDARITY
Week 4 (Sep. 29)
Origins of the Welfare State
Comparing Welfare States
Joseph Stiglitz, 2000. Economics of the Public Sector, 3rd ed., W. W. Norton. Chapter 14. pp. 353-381.
A. Alesina and E. L. Glaeser. Fighting Poverty in the US and Europe. Chapters 4,5,6,8.
Recommended but not mandatory:
Gosta Esping-Andersen, 1990. The three worlds of Welfare Capitalism. Princeton University Press. pp.
1-104.
Week 5 (Oct. 6)
The French Social Protection system: past, present, future
Pierre Rosanvallon, 2000. The New Social Question: Rethinking the Welfare State, Princeton
University Press. Part I: pp. 3-53
J.C. Barbier and B. Théret, 2000, " The French Social Protection System: Path Dependencies and
Societal Coherence", International Research Conference on Social Security, Helsinki, sections 1 and
2, pp.2-23.
M.T. Join-Lambert, 1994, Politiques Sociales, Dalloz. Chapitre 1: Les politiques sociales: 130 années
d'histoire. pp. 27-46.
Recommended:
Nicholas Dufourq, 1994. Vers un État-providence sélectif, Esprit #207, Dec. 1994, pp.55-75.
Week 6 (Oct. 13)
Social Protection: Health Care
Kenneth Arrow, 1963. "Uncertainty and the Welfare Economics of Medical Care". The American
Economic Review, Vol. 53, No.5, 32p.
J.C. Barbier and B. Théret, 2000, " The French Social Protection System: Path Dependencies and
Societal Coherence", International Research Conference on Social Security, Helsinki, section 3,
pp.23-33.
Week 7 (Oct. 20)
Social Protection: Old-Age
« Demographic Aging and the Reform of Pension Systems in the ECE Region», 1999, Economic
Survey of Europe, ECE Spring Seminar, Chapters 2 and 3, 14p.
« An ageing Europe », Alberto Alesina and Francesco Giavazzi, April 2003.
« Retraites : vive la gauche… américaine », Thomas Piketty, Libération, 22/10/2001, 1p.
« Quarante ans pour tous ? », Libération, 12/05/2003, 1p.
Recommended
(A theater play from 1984):
Loleh Bellon, De Si Tendres Liens (Such tender ties)
Week 8 (Oct. 27)
Social Protection against Unemployment and Exclusion
J.C. Barbier and B. Théret, 2000, " The French Social Protection System: Path Dependencies and
Societal Coherence", International Research Conference on Social Security, Helsinki, sections 4 &
5, pp.34-46.
Patrick Pommier, "Les prestations suivant la perte d'emploi en 2002", in Solidarité et Santé, no 4, 2003.
Marie Anguis et al., "Les allocataires des minimas sociaux en 2002", in Solidarité et Santé, no 4, 2003.
Recommended
Pierre Rosanvallon, 2000. The New Social Question: Rethinking the Welfare State, Princeton
University Press. Part II: pp. 57-106.
Week 9 (Nov. 3)
Social Protection: Family policies
Gerda Neyer, (2003) "Family Policies and Low Fertility in Western Europe", Working Paper 2003-21
Jacques Commaille, Pierre Strobel, Michel Villac, La politique de la famille, La Découverte, Repères,
2002, Chap. 1-3
SECTION 3. THE WORK AND WELFARE NEXUS: CHALLENGES FOR EUROPEAN
COUNTRIES
Week 10 (Nov. 10)
What's wrong with European Labor Markets?
Gregory Mankiw, Macroeconomics, Chap. 5, "Unemployment". (20p.)
Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe Versus North America".
Journal of Economic Perspectives, Vol. 11, Number 3, pp. 55-74.
Week 11 (Nov. 17)
Failures and Successes in Reforming European Labor Markets: The cases of France and Sweden
Paul Krugman, 1997. "Is Capitalism too productive?" (9p.)
The Economist, 2004. "Thirty-five hours of misery" (1p.)
Olivier Blanchard, 2003. "Reforming employment protection" (3p.)
SECTION 4: THE CHALLENGES OF GLOBALIZATION
Week 12 (Nov. 24)
Globalization: Gain or Pain?
Daniel Cohen, 1998. The Wealth of the World and the Poverty of Nations. Chap. 1-5.
(75 [small] pages).
Hal R. Varian, 2004. "What Goes Abroad Usually Comes Back, With Benefits". (2p).
(The New York Times, 11 March 2004).
Paul Krugman, 2004. "The Trade Tightrope". (2p). (The New York Times, 27 February 2004).
Week 13 (Dec. 1)
What should we expect from the European Monetary Union?
Robert A. Mundell, 1961. A Theory of Optimum Currency Areas.
The American Economic Review, Vol. 51, No. 4
Charles R. Bean, 1992. Economic and Monetary Union in Europe.
The Journal of Economic Perspectives, Vol. 6, No. 4.
Week 14 (Dec. 8)
Open.