Report 2003: Department of Economics (NØ)
Department of Economics (NØ): Research Report 2003
International research at the Department of Economics 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 focus is on research topics with clear corporate aspects, e.g. in the fields of industrial economics, entrepreneurship and corporate governance, but also conducts research in conventional topics of socio-economics.
The aim is to contribute to knowledge creation in the national and international society through publication of research, participation in research networks, and training of researchers by researchers. In 1998, the Department of Economics introduced Applied Economics and Finance – a MSc programme conducted in English – to further link Department research and courses.
Highlights 2003
Internationalisation:
- Department researchers have extensive working relationships with foreign colleagues and are often invited to research departments abroad. In 2003, a member of the Department staff was invited to present a keynote lecture on ”Taxation and Venture Capital Backed Entrepreneurship” at the 59th conference of the International Institute for Public Finance (IIPF), which is the world organisation of economists working with the economy of the public sector.
Partnership with the business community:
- In 2003, a member of the Department’s staff, together with four other social scientists, received the Grundfos Prize for a prize thesis discussing how, through research and education, Denmark can best prepare itself for the new globalised world where IT plays a crucial part. The thesis was later published as a book entitled ”Denmark and the Information Society, Challenges for Research and Education Politics”.
The learning university:
- Applied Economics and Finance (AEF) is the Department’s successful MSc programme. In October 2003, its student no. 100 graduated and AEF is now well-known among employers in Denmark and abroad. On the London financial markets in particular, AEF graduates seem to be regarded as good employees. In 2003, 140 students enrolled, thus making AEF one of CBS’ major MSc programmes. In fact in recent years, AEF enrolment increased by 50% per year! 2003 was also the year when the AEF Association ( http://www.AEFA.dk ) was established as a meeting place for alumni and a forum for discussions between AEF graduates and students. So the continuous adaptation of AEF to the needs of students, employers and researchers has clearly borne fruit.
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 understanding 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 Department research is mainly concerned with issues of public economy, international economy and labour market theory, macro finance, 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 regarding the best possible structure of the national tax system under the new conditions. Furthermore, there is a need for research in the influence of globalisation on union-dominated labour-markets. 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.
Current topics of research: The increasingly close integration of countries, i.a. in the European Union, creates a need for considerations regarding the best possible structure of the national tax system under the new conditions. Furthermore, there is a need for research in the influence of globalisation on union-dominated labour-markets. 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 social allocation of resources. The importance of fiscal policy and other public policies to the innovative activity of entrepreneurs in society. The extent to which multinationals use transfer pricing and how to achieve optimal taxation of multinationals. The importance of various ownership structures to the organisation and results of enterprises.
Current topics of research: Public incentive structures, e.g. in fiscal and competition policy, allowing the highest possible market efficiency and consequently a satisfactory social allocation of resources. The importance of fiscal policy and other public policies to the innovative activity of entrepreneurs in society. The extent to which multinationals use transfer pricing and how to achieve optimal taxation of multinationals. 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.
Research profile: The Department has 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 sustain 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 working papers 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. The Department is committed to supporting researchers by allocating adequate 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 by researchers counselling students 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. In its Applied Economics and Finance MSc programme, the Department offers research-based courses in a number of the areas represented at the Department.
Department staff: In 2002/03, the Department’s scientific staff was extended considerably. The Department plans to appoint 1 PhD student, 1 assistant professor and 1 associate professor. These appointments will ensure a strong academic environment and allow the staff to enter into fruitful working relationships with colleagues from other research institutions.
Research results
Department publication 1999-2003 in various categories appears from Figure 1. During this period, the Department had 12 standard-workload scientific posts. However, during the same period several staff members were on long-term leave from the Department due to temporary appointments elsewhere or maternity leave, among other things. The size of the Department staff has therefore been smaller than prescribed for long periods of time. This is also evident from the graph of Department use of research funds (Figure 2) which illustrates some variation in the allocation and consumption of basic funds (salaries and technical/administrative staff per year) from 1999-2003 with the lowest level in 2002.
Figure 1
Figure 2
The Department research publication rate in 2003 comprises 14 foreign-language and 9 Nordic-language publications in the categories of theses and dissertations, books and articles in journals and anthologies. Thus in 2003, the Department produced 1 PhD thesis, 4 books, 13 articles in journals and 5 contributions to anthologies. The Department also produced 17 working papers and 17 publications in the category of ”other published research”. The Department assesses various aspects of its research results considered relevant to achieving a satisfactory result, viz.:
International publication in journals: It is important for the Department to publish articles in internationally refereed journals. The number of articles published in journals does not appear from the Figure, but in the period from 1999-2003 the Department published 5, 9, 7, 11 and 11 articles, respectively, in internationally refereed journals. Publication in 2003 also included contributions to international anthologies published by MIT Press and Palgrave Macmillan, among others.
Work in progress: A working paper is often the first step towards international publication. The 17 working papers produced in 2003 show that the Department’s current research level is high.
Presentation: It is important for the Department to contribute to knowledge creation outside restricted academic environments and to participate in public debate. The 17 publications in the category of ”other published research” (”Other publications”) include contributions to economic reports and feature articles and other press contributions. Members of the Department staff have also given interviews and participated in debates on radio and TV.
Research relations to practice
For an economics department contacts to relevant public authorities are as important as contacts to the business community. 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 Webmaster 19/11/2004
