Applied Microeconomics

Applied Microeconomics

The research group applies microeconomic theory to formulate and answer questions on the interplay between legal and economic institutions, in the field of risk and insurance, and in the field of public economics and public policy.

  • Research in Law & Economics

    Research in Law & Economics

    studies how legal institutions shape markets and organizations. A key focus is on understanding how legal systems and law enforcement can explain differences in how firms are organized, financed, and grow across countries and legal jurisdictions. The research is mainly theoretical and applies contract theory and principal-agent theory to understand the impact of legal institutions and law enforcement on economic outcomes.

    Research projects are designed to explain

    • how markets work when some market participants know more than others
    • how market transactions are supported by legal institutions, norms, and implicit agreements
    • how both firms and countries growth depend on the development of key institutions.

    Recent projects ask why institutions are different across countries and how improved institutions in one jurisdiction influence trade, migration and wealth distributions across countries and inside countries.

  • Research in Risk and Insurance

    Research in Risk and Insurance

    focuses on two types of questions. The first concerns individual attitudes towards risk and uncertainty;

    • how these can be measured
    • what explains their size
    • how do they can explain choices in market and non-market situations.

    The second concerns the design of various forms of risk sharing arrangements, both formal and informal, with applications in social insurance, health insurance, non-life insurance.

  • Research in Public Economics

    Research in Public Economics

    Research in Public Economics and Policy covers several core research areas, such as:

    • Health economics
    • Taxation
    • Economic evaluation
    • Industry regulation

    Research in health economics focuses on competition between health care providers in attributes like quality and waiting times; the public–private mix in the supply of health care; the challenges posed by long-term care in an aging society; and the modelling of waiting lists.

    Research in taxation focuses on both corporate and individual tax schemes, as well as environmental taxation.

    Research on economic evaluation encompasses cost-benefit analysis of publicly funded projects such as transport, infrastructure, etc.

    A fourth area of research addresses questions related to the regulation of public utilities, including electricity, telecom, and oil, and specific industries such as health care, pharmaceuticals, and the media market.