Report 2002: Department of Economics (Econ)
Solbjerg Plads 3, C5
DK-2000 Frederiksberg
Head of Department: Bodil Olai Hansen
Telefon: +45 3815 2575
Fax: +45 3815 2576
E-mail: psg.eco@cbs.dk
DK-2000 Frederiksberg
Head of Department: Bodil Olai Hansen
Telefon: +45 3815 2575
Fax: +45 3815 2576
E-mail: psg.eco@cbs.dk
The science of economics describes and explains aspects of economic conditions mutually determining and being determined by the decisions of individual consumers and enterprises interacting with the public sector and international society. The science of economics describes these interrelationships both theoretically and empirically.
Department research aims at discussing enterprises from a social point of view and society regarded as the scope for action of private enterprises and other organisations. The Department increasingly focuses on research topics of corporate relevance, but it also prioritises research in topics of a more socioeconomic nature.
Highlights of 2002
- The Department research publication rate was satisfactory in terms of quality as well as quantity. Articles were published in recognised international journals in both main areas of Department research.
- An increasing part of the Department's research has clear corporate aspects. This applies to industrial economics in particular, which has been prioritised for a number of years, and to more recent research in corporate governance and entrepreneurship which are Faculty focus areas.
- The Department appointed three new professors in international economics and applied economic theory, respectively. The job advertisements attracted many highly qualified applicants. In addition, the Department employed an associate professor, an assistant professor and a PhD student. All the new researchers are working on topics of research solidly positioned among the Department's research areas.
- The Department acquired substantial funds from the Danish Social Science Research Council for research in the area of corporate governance conducted in collaboration with researchers from the Center for Economic and Business Research (CEBR) under the Danish Ministry of Economics and Business Affairs and researchers from the Stern Business School.
- The Department can boast of having a member of the Danish Economic Council presidency, one of the economic advisers, on its staff. This gives rise to extra attention and responsiveness in the press and the general public alike, which is a very positive situation.
Academic profile
The core areas of Department research are (1) macroeconomics and economic policy and (2) applied microeconomics. The distinction between macroeconomics and microeconomics depends primarily on the approach to economics: While macroeconomics focuses on general socioeconomic conditions and the interrelations between the aggregate markets of the economy, the source of microeconomics is individual decisions made by the consumers of economy, enterprises, etc. In order to understand the effects at the macro level of alternative econo-political instruments, it is essential to have basic knowledge of the effect of these instruments on decisions made at the micro level. Hence, there is no hard-and-fast boundary between the micro theory and modern micro-based macro theory.
In the area of macroeconomics and economic policy the Department is mainly concerned with issues of public economy, international economy and labour market theory as well as empirical macro theory and growth theory. Macroeconomics research is of socioeconomic relevance and also important to enterprises in general.
Current topics of research: The increasingly close integration of countries, i.a. in the European Union, creates a need for considerations on the best possible structure of the national tax system under the new conditions. Similarly, considerations on how economic policy, e.g. labour market policy, is to be adapted to a future characterised by a considerable demographical shift towards an older population in all countries. Improved understanding of the mechanisms affecting individual choices in relation to education, work and pre-retirement benefit/pension is required.
In the area of applied microeconomics research focuses on topics of industrial economics, public and international economics and corporate governance. It is application-oriented and often has a clear corporate perspective.
Current topics of research: Public incentive structures, e.g. in fiscal and competition policy, allowing the highest possible market efficiency and consequently a satisfactory allocation of resources. The importance of fiscal policy to the innovative activity of entrepreneurs in society. The optimal taxation of inter-account prices (transfer account prices) in multinational companies. The importance of various ownership structures to the organisation and results of enterprises.
Research strategy
Department research should be firmly anchored in econo-theoretic method.
Department research should be firmly anchored in econo-theoretic method.
Research profile: The Department wants to maintain a broad academic profile in economic theory and policy. As part of a Business School the Department finds it natural to aim significant parts of its research at the business community. This includes an understanding of the role of market agent, regulator and imposer of taxation of the public sector in economy. The Department wants to maintain the level of activity concerning application-oriented topics while also allowing scope for what must be classified as basic research.
Publication strategy: It is a Department priority to publish articles in recognised international journals as this implies a generally recognised guarantee of research quality. International publication, however, is an excessively protracted process, and new knowledge is disseminated faster in academic circles as working or conference papers. A fairly high working paper production rate is therefore important to the Department as they have the potential to be published in journals at a later stage.
Research support: There are very strong career incentives for individual researchers to maximise publication of their research, especially in the form of international articles. At Department level, researchers with an extraordinary publication rate and exceptionally good teachers may receive a bonus. The Department supports researchers by allocating funds for research tours and participation in conferences, thereby allowing researchers to create new networks and to keep in touch with colleagues in other research environments. In addition, the Department allocates funds for a series of seminars supporting its academic environment.
Research-based teaching: The Department finds it important that all researchers also teach as new knowledge, to a wide extent, is passed on through researchers' student counselling and teaching. The Department is under an obligation to teach and provide student counselling at all levels of a wide variety of economics topics at CBS, and therefore our staff must have very broad-spectred knowledge. On its Applied Economics and Finance graduate line, the Department offers research-based courses in a number of the areas represented at the Department.
Department staff: In 2002, the scientific staff was extended considerably and is now at full strength. This will improve the academic environment and allow the staff to enter into fruitful working relationships with colleagues from other research institutions.
Research results
Figure 1 shows Department publication from 1998-2002 in various categories. During this period, the Department had 12 permanent academic positions, but several members of the scientific staff were on leave due to temporary employment elsewhere or maternity leave. The size of the Department staff has therefore often, including in 2002, been smaller than prescribed. This is also evident from the graph of Department use of research funds (Figure 2) which illustrates variation in the allocation and consumption of basic funds (salaries and technical/administrative staff per year) from 1998-2002 with a particularly low level of consumption in 2002.
Figure 1 shows Department publication from 1998-2002 in various categories. During this period, the Department had 12 permanent academic positions, but several members of the scientific staff were on leave due to temporary employment elsewhere or maternity leave. The size of the Department staff has therefore often, including in 2002, been smaller than prescribed. This is also evident from the graph of Department use of research funds (Figure 2) which illustrates variation in the allocation and consumption of basic funds (salaries and technical/administrative staff per year) from 1998-2002 with a particularly low level of consumption in 2002.
Figure 1: Publications 1998-2002
Figure 2: Research funds 1998-2002
The Department assesses several aspects of its research results considered relevant to achieving a satisfactory result, viz.:
International publication in journals: It is important to publish articles every year in recognised international journals in both main areas of Department research. The number of articles published in journals does not appear from the Figure, but in the period from 1998-2002 the Department published a total of 10, 5, 9, 7 and 11 articles, respectively, in international journals. We consider this a satisfactory level.
Work in progress: In the period from 1998-2002, production amounted to 27, 19, 31, 23 and 19 working papers, respectively. A working paper is often the first step towards international publication. A fairly high working paper production rate is therefore important to the Department as they have the potential to be published in international journals at a later stage. The considerable number of working papers published during this period is therefore highly satisfactory.
Presentation: From 1998-2002, other publications amounted to 1, 12, 11, 12 and 16, respectively. These contributions consist mainly of economic reports, etc., teaching material, feature articles and other press contributions.
Research relations to practice
For an economics department contacts to various public authorities are as important as contacts to the business community. Several Department researchers have significant relations to ministries and institutions in central government, especially the Danish Ministry of Taxation, the Central Customs and Tax Administration, the Danish Competition Authority, the Danish Economic Council and Statistics Denmark. Several Department researchers cooperate with the Centre of Economic and Business Research (CEBR) under the Danish Ministry of Economics and Business Affairs. Furthermore, the Department has working relationships with certain consultancy agencies, some public and private enterprises and a few trade associations.
For an economics department contacts to various public authorities are as important as contacts to the business community. Several Department researchers have significant relations to ministries and institutions in central government, especially the Danish Ministry of Taxation, the Central Customs and Tax Administration, the Danish Competition Authority, the Danish Economic Council and Statistics Denmark. Several Department researchers cooperate with the Centre of Economic and Business Research (CEBR) under the Danish Ministry of Economics and Business Affairs. Furthermore, the Department has working relationships with certain consultancy agencies, some public and private enterprises and a few trade associations.
Last updated by Anders Krag 09/02/2005
