Matti Virén
Professor
Contact:
tel. +358 2 333 5397 (W)
email: matti.viren (at) utu.fi
address: Department of Economics, FIN-20014 University of Turku
home page
Curriculum Vitae
Research interests:
- Applied macro economics; household saving behaviour, measurement of policy effects with macro models, forecasting, empirical models of criminal behaviour. Nonlinear econometric models.
- Applied monetary economics: particularly the demand for currency and money, monetary and fiscal policy transmission mechanism, the effects of financial innovations and currency substitution, payment systems
- Fiscal policy and the size of government: measurement of fiscal policy effects, automatic stabilisers, tax incidence, policy coordination.
Project in PCRC:
My main research theme is the size and efficiency of the public sector. For that purpose, the intention is to focus on political economy explanations for the key determinants of the size and role of government: the size of government, the structure of taxes and expenditures, policy activism (political business cycles), and the nature of policy. The idea is provide answers to such questions as: - Why do certain countries have big government? ? Why do certain countries have high emphasis on income distribution (progressive taxation and extensive transfers?) - Why do certain countries stick to certain rules instead of pursuing discretionary policies? - Why do some governments manage better with the business community? - How does the size and structure of government affect the performance of the economy, in terms of both growth and stability? As for the theory, very much is based on the research tradition originated by Persson and Tabellini. Thus, such background variables as electoral system, division of power between political institutions, size and openness of the market economy, play an essential role in both theoretical and empirical models. The analyses are at variance with many traditional models where the government and government operations are taken as given and assumed that they cannot be improved or developed. The analyses which focus on the impact of government on the performance of the economy make use of research tradition started by Baumol (1967) and Aschauer (1989) and extend to some more modern formulations of growth economics. These analyses would help us to understand how the changes in e.g. in the European Union (or in the overall globalization) might affect the government. Research is empirically oriented and makes extensive use of cross-country (and also cross-municipality) cum time-series comparisons and follow-up studies. Panel data econometrics will be used routinely. In 2008 work in the project will focus on basically on all questions mentioned above. Emphasis is, however, on the government size and efficiency plus the policy effectiveness issue. On these topics we have already written several papers and articles and formed contacts with some prospective publishers. Currently I am working together Mikko Puhakka (University of Oulu) on issues of ageing, social security and fertility which will continue to 2008 at least. Moreover, work continues in areas of modeling and policy behavior. Finally, some work will be done in the empirical evaluation of economics of crime models applied in juvenile crime, in particular. This work will be done in co-operation with Ville Mälkönen (Government Institute of Economic Research). The analyses are based on theoretical work on dynamic ("life-cycle") models of criminal behavior which are developed in co-operation with Aleksi Grym (University of Turku) and Mikko Puhakka. Some public policy issues of crime and gambling are analyzed together with Martin Paldam (University of Århus).
In 2008-2010, the main products will be three books. The first where I am both an editor and an author deals with public policy issues of gambling, The second will be written together with David Mayes dealing with policy effectiveness and policy uncertainty in the case of asymmetric behavioral relationships and heterogeneity. The third volume concentrates on the government size and financing issues and will be done jointly with Jaakko Kiander (Labour Institute of Economic research). In 2011-2013, the analyses on public sector continue and the intention is to prepare a further volume of the findings on the government efficiency issues. The analyses of criminal behavior will also be published possibly in the form a conference volume.