Public finance and economic policy

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

Researches of the program

Research began 2018 Research ends 2019
This project studies how ongoing technological changes and globalization should be taken into account in the design of the Finnish tax system. The project takes stock of the research on how digitalization, artificial intelligence and robotization can be expected
Research began 2017 Research ends 2018
The project provides comprehensive information on the situations of different sub-groups of persons who live alone. We sort out the occurrence of people living alone both geographically and at different stages of the life cycle and during life’s turning
Research began 2013 Research ends 2017
The study analyses on debt and debt relations of individuals and the public sector in a welfare state. It characterizes the properties of private and public debt and implicit public liabilities, studies household debt in a life-cycle perspective, assesses
Research began 2016 Research ends 2018
The research project aims at analysing the distribution of risks that relate to employee pension insurance benefits and their funding, both in theoretical scheme types (public/private, statutory/voluntary, defined benefit/defined contribution, funded/pay-as-you-go) and in their different combinations as employed by
Research began 2014 Research ended 2017
The project combines inputs of demographers and economist to update our knowledge on the economic effects of ageing and to provide new information on specific thematic areas. Typical questions to be answered are: How does population ageing affect individuals’
Research began 2016 Research ends 2019
The project aims at providing new information on reasons of health inequities, as well as recommendations for policy and future strategies to promote health and wellbeing. The undertaking will develop evidence-based and cost-effective models of health and wellbeing promotion