Public finance and economic policy

  • Taxation
  • Population aging and sustainability of public finances
  • Social insurance and division of labour between public and private sectors

Public finance and economic policy research focuses on structural issues pertaining to taxation and the financing of social security. The long-term economic policy problems are investigated in particular from the perspective of population aging with emphasis on uncertainty and risk related to economic and demographic development. Policy analysis is focused on the sustainability of public finances and the design and evaluation of related operational strategies.

The research topics revolve around savings and wealth, pensions and other forms of social security and its financing, taxation and its effect on incentives, the income distribution between generations, as well as public debt. The division of labour between social insurance and private insurance activities is an important element of the research.

The research is often based on the use of a general equilibrium simulation model. It focuses on household and corporate decision-making affected by income transfer and tax schemes. This method will be applied in many future projects incorporating elements of economic uncertainty. The criterion for a good policy is then the expected improvement in well-being in addition to risk management.

Studies related to long-term sustainability also address business cycle issues. The measurement of fiscal policy tightness is an example of this type of research.

Public Finance and Economic Policy research staff:

Research Director, Ph.D. Niku Määttänen
Research Advisor, Dr.Pol.Sc. (Economics) Jukka Lassila
Research Advisor, Dr.Ec.Sc. Tarmo Valkonen
Researcher, Ph.D. Tero Kuusi
System designer, M.Sc Eija Kauppi