Economics

Recent research in the Department of Economics focuses on environmental and energy economics, regional economics, long-run macrodynamics and decision making under uncertainty. Heterogeneity is a current research topic very much on the agenda in all the research fields. This interest is based on theoretical breakthroughs, computational and methodological development and data availability. Methodological breakthroughs have made it possible to move from aggregate data to genuine individual and agent based models and calculations. At the same time the availability of micro data has increased markedly. This development has opened new avenues for including heterogeneity in research.

In environmental economics the main research themes of the department relate to attitudes toward environmental goods, and combining economic and biological factors in natural resource management. In our energy studies we have shown how heterogeneity in utilities’ endowments creates strong possibilities for wrong policy choices if that fact is not properly taken into account. We also study the heterogeneity of the power system, especially related to intermittent energy sources like wind and sun. In our regional economic development research we focus on the role of innovations and diversity in regional economic growth. In macrodynamics the emphasis has been in overlapping generations models applied to the issues of social security and renewable natural resources. Our economic decision making research is based on a novel way to combine genuine economic risk taking data to medical and psychological data received from North-Finland Birth Cohort research.

Last updated: 19.7.2016