When macro meets micro: Global challenges and heterogeneous responses in Norway (Macro-micro)
As a small, open economy, Norway has always been exposed to global economic developments. Climate change, the Covid-19 pandemic and a sharp decrease in oil prices pose specific challenges to the Norwegian economy and the sustainability of the welfare state.
Although most signs suggest that oil has been a blessing for Norway, not all workers gain equally. Hence, there is a need to develop rigorous economic policy recommendations how to address the externalities and spillovers from the oil sector and challenges of resource rich economies in general. The unifying theme of Macro-micro is to use micro data and modern methods to study questions of macroeconomic importance and policy relevance.
Macro-micro will contribute to a better understanding of how the transition away from a petroleum-based economy may affect the efficiency of resource allocations. The project will study the drivers, spillovers and challenges resource rich economies face and discuss Norway’s challenges in connection with technological change, robotisation and digitalization. Macro-micro will analyse inequalities arising from business cycles and challenges to the sustainability of the welfare state and study the heterogeneous effects of macroeconomic policy in Norway, addressing business cycle conditions, the shift to a greener economy, and the management of the Government Pension Fund.