- Population ageing and sustainability of public finances
- Social security and life cycle perspective
- Division of labour between the public and the private sector
- Economic forecasts
The main focus of our public finance research is on structural issues related to taxation and social security. The long-term problems of economic policy are addressed in particular from the perspective of population ageing, with an emphasis on the uncertainties and risks associated with economic and demographic development. The policy analysis focuses on the sustainability of public finances and the evaluation of related operational strategies. Sustainability assessments also include cyclical issues, such as measuring the tightness of fiscal policy.
Research topics relate to savings and wealth, pensions and other elements of the social security system, income distribution between generations and public debt. Social security is often analysed from a life-cycle perspective.
Tools used for analysing and forecasting the Finnish economy include a macroeconomic model, a calculation framework based on national accounts, an input-output model, and models describing different sectors. We also use a global macro model, NiGEM, to analyse developments in the global economy. In the drafting of forecasts, nowcasting methods are developed and the possibilities offered by artificial intelligence are explored.
Key forecasting networks include Euroframe, consisting of European research institutes, as well as AIECE, comprising European conjuncture institutes.