economics school of business and economics university of jyväskylä finland
TRANSCRIPT
ECONOMICS
School of Business and Economics
University of Jyväskylä
Finland
I: An introduction to research in economics in Jyväskylä
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I. Introduction
II. Applied research on regional labour markets
III. Applied research on financial markets
Index
1. Staff and orientation in research
2. Publishing
3. Doctoral training
4. Research collaboration
5. Societal influence
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1. Staff and orientation in research: Staff
4 professors Jaakko Pehkonen – empirical labour economics Hannu Tervo – empirical regional economics Markku Lanne – empirical financial economics
on leave 2005-06, Ari Hyytinen deputizing for Kari Heimonen (fixed term) – empirical international and financial
economics Other staff
Esa Mangeloja, Ph.D., lecturer – empirical economics Mika Haapanen, Ph.D., senior assistant – empirical labour economics Juhani Raatikainen, senior assistant – empirical financial economics Tuomo Nenonen, Ph.D., lecturer – empirical regional economics Jani Luoto, university lecturer – empirical macro economics Jutta Moisala, assistant – empirical labour economics
on leave, Riikka Penttinen deputizing for – empirical regional economics Jari Ritsilä, leading researcher (Expert services) – empirical regional
economics
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Staff and ….:Orientation in research
Applied research
Two main fields:
Labour and regional economics Regional labour markets
Financial economics
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2. Publishing Number of WP-publications in 2000-2004 is 55 (see the attached list) Refereed articles in 2004-2005
Hynninen, S. (2005): Matching across space: Evidence from Finland, Labour: Review of Labour Economics and Industrial Relations, 19 (4) (Forthcoming).
Hynninen, S. (2005): Labour market status of job seekers in regional matching processes, 45th Congress of the European Regional Science Association, Amsterdam. Paper presented in R-sessions (refereed-paper sessions), CD-ROM.
Hyytinen A. & Ilmakunnas, P. Entrepreneurial aspirations: Another form of job search, Small Business Economics, forthcoming.
Hyytinen A. & Takalo, T. Corporate law and small business finance: Mandatory v. enabling rules, European Business Organization Law Review, forthcoming.
Kangasharju, A., Pehkonen, J. & Pekkala, S. (2005): Returns to scale in a matching model, Applied Economics 37: 115-118.
Pehkonen, J., Kangasharju, A. & Pekkala, S. (2004): Matches, on-the-job search and temporal aggregation: evidence from the Finnish panel data, the 16th Annual EALE Conference, Lissabon,, congress CD-ROM.
Koskinen, H. (2004), Modelling of structural changes in demand for money cointegration relations, Finnish Economic Papers 17: 63-72.
Lahtonen, J. (2004): Open vacancies and educational level of job seekers in Finland, The 16th Annual EALE Conference, Lissabon, congress CD-ROM.
Lanne, M., Liski, M. (2004): Trends and Breaks in Per-Capita Carbon Dioxide Emissions, 1870 – 2028, Energy Journal 25: 41-65.
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2. Publishing Number of WP-publications in 2000-2004 is 55 (see the attached list) Refereed articles in 2004-2005
Mukkala, K. (2004) Agglomeration economies in the Finnish manufacturing sector. Applied Economics, 36: 2419-2427.
Niittykangas, H., Tervo, H. (2005): Spatial variations in intergenerational transmission of self-employment, Regional Studies (2005): 319-332
Ollikainen, V. (2005): Gender differences in transitions from unemployment: Micro evidence from Finland, Labour: Review of Labour Economics and Industrial Relations
Tervo, H. (2005): Regional population development in Finland – an economic perspective, Abwanderung, Geburtenrückgang und regionale Entwicklung, (ed.) Christiane Dienel (forthcoming).
Tervo, H. (2004): Self-employment dynamics in rural and urban labour markets, Regional Science Association International & European Regional Science Association – 44th European Congress, Porto. Paper presented in R-sessions (refereed-paper sessions), CD-ROM.
Tervo, H. (2005):Regional policy lessons from Finland, Berlin: Springer-Verlag. Regional disparities in small countries / (eds.) D. Felsenstein, B.A. Portnov , 2005, 267-282.
Tervo H. (2005) Regional unemployment, self-employment and family background. Applied Economics (forthcoming)
Heimonen, K. (2005) Time-varying fundamentals of the euro-dollar exchange rate, International Economic Journal, (forthcoming).
Heimonen, K. (2005) Nonlinear adjustment in PPP – Evidence from threshold cointegration, Empirical Economics, (forthcoming)
Tohmo, T. (2004): New Developments in the Use of Location Quotients to Estimate Regional Input-Output Coefficients and Multipliers. Regional Studies, 38, 1: 43-54.
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3. Doctoral training: Ph.D. students
Research training is organized by the Graduate School of the School of Business and Economics and through the national program FDPE (KAVA)
The number of active Ph.D. students has strongly increased, being now 18
Funding: 80 % external (Academy of Finland, Yrjö Jahnsson Foundation, KKsäätiö)
New competent doctoral students are actively recruited and financing for them is sought for
15 PhDs since 1990. Most of the PhDs work in various research institutes (e.g. Government Research Institute, Labour Research Institute, Bank of Finland, Ministry of Finance) or in Academia (Universities in Jyväskylä, Joensuu, Kuopio and Turku)
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Doctoral training: Ph.D. students
Doctoral degrees in 2000-04 Sari Pekkala, “Regional Convergence and Migration in Finland 1960-95” Jari Ritsilä, “Studies on the Spatial Concentration of Human Capital” Antti Moisio, “Essays on Finnish Municipal Finance and Intergovernmental
Grants” Mika Haapanen, “Studies on the Determinants of Migration and the Spatial
Concentration of Labour” Esa Mangeloja, “Nordic Stock Market Integration”
Doctoral degrees in 2005 Sami Yläoutinen, “Development and Functioning of Fiscal Frameworks in
the Central and Eastern European Countries” In progress (pending for oral examination)
Virve Ollikainen, financing from the FDPE, “Gender Differences in Unemployment in Finland”
Jukka Lahtonen, Academy of Finland, “Matching Heterogeneous Job-seekers and Vacancies”
Hannu Koskinen, financing from the University “Studies on Demand for Money, Inflation and Labour Market Dynamics in Some EU Countries”
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DOCTORAL TRAINING
Finnish Doctoral Program in Economics
(FDPE)
•Courses•Seminars
•Workshops•National and international collaboration
Finnish Doctoral Program in Business Studies
(KATAJA)
•Courses•Seminars•Tutorials
•Workshops•National and international collaboration
Graduate School of the School of Business andEconomics
•Recruiting students•Support for funding arrangements•Thesis supervision•Complementary courses•Support for interdisciplinary work•Seminars in fields of expertise
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4. Research collaboration (1): FDPE
Research collaboration with the Finnish Doctoral Programme in Economics (FDPE) Economics faculty:
Members of FDPE-board and FDPE-steering committee (previously) Coordinators of research workshops in
• Econometrics and computational economics • Macroeconomics and political economy• Labour economics (previously)• Applied econometrics (previously)
Expert advisors of research workshops in• Econometrics and computational economics• Capital markets and financial economics• Labour economics
Ph.D. students: Hold (and have held) FDPE-fellowships Active participation in FDPE -research workshops
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Research collaboration (2): organization of congresses
Economics is an active unit in organizing congresses and seminars
Since 1983, the unit has organized the Annual Summer Seminar for Economic Researchers 81 presentations and 165 participants in 2005
In 2001, the SBE in co-operation with the EALE Secretariat organized the 13th annual conference of European Association of Labour Economists 300 participants, most of them international
In 2003, the SBE organized the 43rd Congress of the European Regional Science Association 500 participants, over 400 of them international The congress was highly praised: “a congress of
innovations” … “the most successful ERSA congress so far” ... (see the attachment)
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Research collaboration (3): joint projects (int.)
Markku Lanne & Helmut Lütkepohl (European University Institute)
Sari Pekkala & Robert E.B. Lucas (Boston University) Jaakko Pehkonen & Klas Fregert (Lund University) Esa Mangeloja & Tomi Ovaska (University of Regina) Timo Tohmo & Anthony Flegg and Don Webber (University
of the West-England) Ari Hyytinen & Sofia Lundberg (Umeå University) (& Otto
Toivanen (Hecer))
+ Participation in international book projects
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Research collaboration (4): joint projects (nat.)
Markku Lanne & Pentti Saikkonen (HY) (Financial Return Volatility)
Jaakko Pehkonen & Aki Kangasharju & Sari Pekkala (Government Institute of Economic Research) (Job Matching)
Kari Heimonen & Juuso Vataja (University of Vaasa) (Exchange Rate and Equity Markets)
Hannu Tervo & Statistics Finland (Regional Input-Output project)
Ari Hyytinen & Tuomas Takalo (Bank of Finland) (Law and Finance -project)
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Research collaboration (5): interdisciplinary c-o within JYU
Our Annual Summer Seminar gathers researchers from many disciplines (history, social sciences, politics, education, business economics)
Joint projects with Department of Economic History (Jaakko Pehkonen & Jari
Ojala) Department of Social Sciences (Hannu Tervo & Jouko Nätti) Statistics, University of Tampere (Jani Luoto & Jan-Erik
Antipin) Entrepreneurship (Hannu Tervo & Hannu Niittykangas) Marketing (Kari Heimonen & Outi Uusitalo)
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Research collaboration (6): refereeing, editorial activity
Refereeing activity (selected): Australian Journal of Labour Economics, Applied Economics,
Contemporary Economic Policy, Economic Journal, Empirical Economics, European Economic Review, European Journal of Spatial Planning, European Accounting Review, Finnish Economic Papers, Finnish Journal of Business Economics, International Regional Science Review, International Tax and Public Finance, Journal of Economic Behaviour and Organization, Journal of Economic Studies, Journal of Macroeconomics, Journal of Comparative Economics, Journal of Industrial Economics, Labour Economics, Oxford Economic Papers, Papers in Regional Science, Review of Labour Economics and Industrial Relations, Regional Studies, Scandinavian Journal of Economics, Journal of Business, Journal of International Financial Markets, Institutions and Money
Editorial activity Finnish Economic Journal (Kansantaloudellinen aikakauskirja) Finnish Economic Papers
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5. Societal influence: Policy-making
The expertise of the staff has been materialized in a number of research projects that have provided funding for PhD
students, in a number of publications of a good international level; as well as in policy oriented research for the purpose of regional and national
level decision-making
The expertise and research of the staff has also been utilized in various policy projects both at regional and national level (selected) Government’s Employment Committee, 2003 Prime Minister Office’s Economic Council: Working Group Report on
“Regional development and regional policy in Finland” 2001 Economic Council, Ministry of Finance, member 2003-2006 Scientific Council, Statistics Finland, member 2004-2005 Regional Council of Central Finland Regional Champers of Commerce
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Societal influence: Participation in Public Discussion
Active participation in public (policy) discussion Writings in periodicals, magazines and newspapers
c. 60 columns in newspapers List (selected):
Keskisuomalainen (major regional news paper) Helsingin Sanomat (major national news paper) Suomen Kuvalehti (major Finnish magazine)
Dissemination of scientific knowledge Active participation in panels, seminars and other social occasions
Both nationally and regionally
Awards: Schild Award, Eero Fredrikson Award, Award for promoting the dissemination of scientific knowledge
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Societal influence: Expert services
Evaluation of the Effectiveness and Functioning of the Aid Scheme under the Aid to Business Act (Ministry of Trade and Industry)
Evaluation of the Structural Fund Activities in the Administrative Sector of Ministry of Trade and Industry (Ministry of Trade and Industry)
Evaluation of developing regional competence and regional effects of projects under to European Social Fund (Ministry of Education)
General Framework for Long-Term Social Impact Evaluation of the Employment Strategy (Ministry of Labour)
Supporting the Contribution of Higher Education Institutions to Regional Development (OECD)
Innovation Strategies, Local Operational Environments and Interaction Networks of Small and Medium Sized Enterprises (Ministry of Agriculture and Forestry)
Evaluation of Jyväskylä Science Park (JSP Oy) Midterm Evaluation of Objective 2 programme of Western Finland
(Ministry of Interior) Evaluation of the Horizontal themes of Anticipation and Sustainable
Development in the Context of European Social Fund (Ministry of Labour)
II: Applied research on regional labour markets
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Applied research on regional labour markets
University of Jyväskylä is well-known about its applied research on regional labour markets Empirical research on regions and labour markets has a long
tradition in the University of Jyväskylä This research is directed at the analysis of functioning,
development, interrelationships and policies of regional economies and labour markets, the main focus being in regional labour markets
Advanced econometric methods and both macro and micro data are utilized Longitudinal micro data sets have become more and more
important
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Researchers
Research leaders are Professors Jaakko Pehkonen and Hannu Tervo
Multilayered research cooperation
Senior researchers ↔ post doc-researchers
↔ Ph.D. students ↔ master theses
National and international networks
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Doctoral students
Jukka Haukka, researcher in Expert services, “Evaluation of regional economic processes and policies in the assisted areas”
Tatu Hirvonen, financing from the University, “Economics of growth and happiness”
Sanna-Mari Hynninen, Academy of Finland, “Matching of job seekers and vacant jobs in regional labour markets“
Signe Jauhiainen, Yrjö Jahnsson Foundation, “Regional concentration of human capital”
Jouni Kaipainen, Chydenius-institute, “Economic value of the countryside” Kirsi Mukkala, researcher in Expert services, “Regional concentration and
knowledge spillovers” Jutta Moisala, assistant (at present researcher in the Labour Institute for
Economic Research), “Wages and economic adjustment” Satu Nivalainen, Academy of Finland, “Labour mobility and families in Finland” Riikka Penttinen, assistant, “Cultural activities in regional development” Timo Tohmo, financing from the University, “Studies on the regional
development and production structure in Finland” Anu Tokila, Yrjö Jahnsson Foundation, “Entrepreneurship, self-employment
and public interventions”
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Achievements
Research results have been presented in various scientific congresses around the world and published in many edited books as well as in high-level journals such as: Scandinavian Journal of Economics, European Economic Review, Labour,
Applied Economics, Regional Studies, Papers in Regional Science, Small Business Economics, International Review of Regional Studies, Applied Economics Letters, Finnish Economic Papers, Oxford Bulletin of Economics and Statistics
Organized international congresses – EALE 2001, ERSA 2003 Dissertations Prizes
The Epainos Prize for the best paper presented at the ERSA meetings by a young regional scientist has been awarded three times for a Ph.D. student from Jyväskylä (Aki Kangasharju 1998, Sari Pekkala 2000 and Mika Haapanen 2001)
The OKO Foundation has rewarded Kari Hämäläinen from the best licentiate work
The Yrjö Jahnsson Foundation and other foundations have rewarded numerous students from Jyväskylä for their master theses
Societal activity Policy projects Writings and columns in periodicals, magazines and newspapers
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Research projects: funding
Academy of Finland: 5 projects in 2002 - 2007 (total of about 1 million euro)
Foundations: about 20 research grants in 2000 - 2005 (totalling about 0.4 million euro)
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Research projects: list of projects
“Externalities, Education, and Job Competition: Matching in the Finnish Labour Market”
“Labour Market Flows, Mismatch and Structural Unemployment in Finland”
“Labour Market Flows in Finland in the 1990s and 2000s” “Migration, Labour Market Adjustment and Convergence” “Human Capital, Agglomeration Economies and Regional
Concentration” “Who Becomes an Entrepreneur - When and Why? Who
Survives?”
+ Projects of Expert services
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Externalities, Education, and Job Competition: Matching in the Finnish Labour Market
The project is funded by the Academy of Finland for the period of 2005-2007
Jaakko Pehkonen with Hannu Tervo with researchers Sanna-Mari Hynninen and Jukka Lahtonen. The research team also includes Dr. Aki Kangasharju (VATT)
The project examines questions related to job matching in Finnish labour markets. The research focuses on spatial and temporal aggregation in the matching function as well as efficiency of matching across labour offices.
Results so far: Lahtonen’s PhD under review 2 refereed articles, 3 under review, 3 conference papers
(ERSA, EALE)
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Labour Market Flows, Mismatch and Structural Unemployment in Finland
The project was funded by the Academy of Finland for the period 2003‑2004
Jaakko Pehkonen and Hannu Tervo with a research group (Dr. Aki Kangasharju (VATT), Dr. Kari Hämäläinen (VATT), Mika Haapanen, Hannu Koskinen and Virve Ollikainen)
The main questions related to the questions of regional mobility, gender differences and youth labour markets
The project was successful 1 doctoral dissertations (Haapanen), one PhD under review
(Ollikainen), 1 licentiate thesis (Koskinen) 4 articles in refereed international journals and several
conference papers Several articles and writings in Finnish journals and
periodicals
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Labour Market Flows in Finland in the 1990s and 2000s
The project was conducted during the period of 2002-2003 Jaakko Pehkonen and Hannu Tervo together with
researchers Virve Ollikainen, Mika Haapanen, and Ulla Hämäläinen (Labour Institute for Economic Research)
The main questions related to the questions of regional mobility, gender differences in unemployment and youth labour markets
The project was successful 1 licentiate thesis (Haapanen) and several master theses 2 articles in refereed international journals 4 articles in compiled books and several articles and writings
in Finnish journals and periodicals
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Migration, Labour Market Adjustment and Convergence
The project started already in 1998 and was funded by the Academy of Finland with 3 different financial decisions
Hannu Tervo together with Jaakko Pehkonen and the research team Jari Ritsilä, Sari Pekkala, Satu Nivalainen and Merja Kauhanen (post-doc researcher)
The main questions related to the questions how regional mobility affects economic growth and regional development, and how regional income differences have developed
The project was very successful 2 doctoral dissertations (Ritsilä and Pekkala), 2 licentiate
theses and several master theses 15 articles in refereed international journals 4 articles in compiled books and several articles and writings
in Finnish journals and periodicals
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Human Capital, Agglomeration Economies and Regional Concentration
The project is funded by the Academy of Finland during the period of 2003-2006
Hannu Tervo together with Jaakko Pehkonen and Jari Ritsilä The project has employed several post graduate students: Kirsi
Mukkala, Signe Jauhiainen, Timo Tohmo, Jukka Haukka, Anu Tokila and Satu Nivalainen
The main objectives Impacts of geographical concentration and human capital on regional
economic growth Knowledge spill-overs and the high-tech sector in regional growth Education and human capital accumulation in regional growth
The publications of the project so far consist of 3 articles in refereed journals and books 3 articles in referee process 3 articles in congress cd-roms 1 article in a Finnish journal 5 working papers
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Who Becomes an Entrepreneur - When and Why? Who Survives?
A microeconometric study of self-employment and entrepreneurship in Finland in 1987-2002
The project has started in 2003 and funding has now been applied from the Academy of Finland (LIIKE2)
Hannu Tervo together with Jari Ritsilä, Jaakko Pehkonen, Hannu Niittykangas (professor in entrepreneurship), Jouko Nätti (academy research fellow, department of social sciences), Mika Haapanen (senior assistant) and Anu Tokila, (Ph. D. student)
The main aim is to analyze entries into and exits out of self-employment as well as dynamics and duration of self-employment periods Special interest will be directed at self-employment of
students and young workers, knowledge-based and high-potential entrepreneurship and regional differences in self-employment
The project has produced 4 papers so far (2 in refereed journals)
III: Applied research on financial markets
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Overview
Relatively recent initiative
Type of work that is being done: Mostly applied empirical / econometric work
Past and on-going research: Econometric modeling of financial data
Applications to asset pricing and risk management
International finance and macro
Empirical corporate finance
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Researchers Research leaders
Professor Markku Lanne Currently on leave (Jean Monnet Fellow at the European University
Institute Florence) Focus on econometric modeling of financial time series On-going work on GARCH models, models for realized volatility, range-
based volatility measures, etc. Dr., docent Ari Hyytinen deputizes Sept. 2005 →
Professor (fixed term) Kari Heimonen Focus on empirical studies on international finance, especially on
exchange rates and currency substitution On-going work on exchange rates and equity flows
Other researchers Ph.D., senior lecturer Esa Mangeloja
Focus on portfolio investments in a global world Senior assistant Juhani Raatikainen
Focus on modelling FX and stock index returns by linear and non-linear models
6 doctoral students
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Doctoral students
Tuuli Koivu, Bank of Finland, “Financial Markets in Transition Economies” (International Finance and Macro)
Hannu Koskinen, financing from the University “Studies on Demand for Money, Inflation and Labour Market Dynamics in Some EU Countries” (International Finance and Macro)
Helinä Laakkonen, financing from the FDPE, “Exchange Role Volatility and the Role of New Information” (Modeling Financial Data / International Finance and Macro)
Jani Luoto, assistant, “Prices and Long-run Growth – Bayesian Approach” (International Finance and Macro)
Juhani Raatikainen, senior assistant, “Modelling Financial Time Series with Non-linear Models: A Forecasting Comparison” (Modeling Financial Data)
Sami Yläoutinen, Ministry of Finance, “Development and Functioning of Fiscal Frameworks in the Central and Eastern European Countries” (International Finance and Macro, thesis was defended in October 27, 2005)
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Research projects
Examples of past and on-going work: Modeling Financial Data
Modeling and forecasting realized and range-based volatility GARCH models for financial return volatility The trading dynamics of a stock listed on multiple exchanges Effect of transaction costs on exchange rate volatility Identification of shocks in vector autoregressive models
International Finance and Macro The Euro-Dollar Exchange Rate and Equity Flows The Euro and the Dollar: Role of Currency Substitution and Equity
Markets Equity markets and the real euro-dollar exchange rate
Empirical Corporate Finance Capital market imperfections and availability of capital to small
businesses The effects of legal system on SME finance
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Modeling Financial Data
Professor Markku Lanne, “Modeling and forecasting realized and range-based volatility” The study compare forecasts produced by the long-memory
linear models and short-memory nonlinear models Extentions of the short-memory multiplicative error model of
Engle (2002) Model estimated for the logarithm of realized volatily as in
Andersen et al. (2003) The nonlinear short-memory model is likely to produce more
accurate forecasts
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Modeling Financial Data
Professor Markku Lanne,
GARCH models for financial return volatility
1. “GARCH-in-Mean models and asset pricing”
Applies the GARCH-in-Mean model in testing the ICAPM
Finds support for the ICAPM theory as well as the presence of conditional skewness in postwar U.S. excess stock returns
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Modeling Financial Data
Professor Markku Lanne,
GARCH models for financial return volatility
2. “Mixture CARCH Models” Formulates GARCH Models to incorporate heterogeneity due
to agents different investment horizons and the uncertainty of the state of the economy
The mixture GARCH Model should be capable of explaining the long memory in financial market volatility and have a relative computational simplicity
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Modeling Financial Data
Professor Markku Lanne,
GARCH models for financial return volatility
3. “Multivariate factor GARCH Models”
Introduces a new kind of multivariate GARCH Model which impose a factor structure that both reduces the number of parameters and allows easier interpretation of in economic terms
Could be used in large system in empirical finance
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Modeling Financial Data
Professor Markku Lanne, “The trading dynamics of a stock listed on multiple exchanges” Uses Autoregressive Conditional Duration (ACD) of Engle and Russel
(1998) to examine the effects of trading volume on the time between consecutive price changes both in the domestic and the foreign markets
Professor Markku Lanne, “The trading dynamics of a stock listed on multiple exchanges” Informed investors in Nokia mainly trade in the US market
whereas Helsinki is the more liquidity-oriented trading place
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Modeling Financial Data
Professor Markku Lanne, “Effect of transaction costs on exchange rate volatility”
Examines the effects of transaction costs on financial market volatility using daily intradaily foreign exchange data
(i) Whether an increase in transaction costs stabilize markets
(ii) What factors drive the relationship between transaction costs and foreign exchange volatility
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Modeling Financial Data
Professor Markku Lanne, “Identification of shocks in vector autoregressive models” Research project with Helmuth Luthkepohl (EUI) Search for the general conditions required for identification of
stationary VAR models and nonstationary cointegrated vector error correction models (VECM)
Comparison of results with the traditional identification schemes
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International Finance and Macro
Professor Kari Heimonen (fixed term)
Work concentrates on empirical international finance and macro: Currency substitution
Determination of exchange rates
Monetary policy in open economy
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International Finance and Macro
Professor Kari Heimonen, “The Euro-Dollar Exchange Rate and Equity Flows” Examines the impacts of the equity flows between the EMU
and the US on the Euro-Dollar exchange rate Changes in equity returns cause reallocation of equity
portfolio. An increase in the value of EMU equity portfolio implies equity flows into the US
Portfolio reallocation implies order-flow in foreign exchange markets, which has an impact on exchange rate
An increase in equity returns in the EMU area causes an equity flow into the US, which devaluates the euro against the US dollar
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International Finance and Macro
Professor Kari Heimonen, “The Euro and the Dollar: Role of Currency Substitution and Equity Markets”
Examines the economic interdependency between the US and the EMU in terms of currency substitution and equity flows
The spill-over effects were prevalent although the impacts from the US on EMU were stronger than from the EMU to the US
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International Finance and Macro
Professor Kari Heimonen, “Equity markets and the real euro-dollar exchange rate”
Research project with Juuso Vataja (University of Vaasa)
Incorporates equity markets in modeling the dynamics of the real euro-dollar exchange rate
Tests whether the equity markets could partly explain the recent dynamics in the real euro-dollar exchange rate
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Empirical Corporate Finance
Empirical work on capital market imperfections and availability of capital to small businesses Examples of recent work
Hyytinen, A. and Väänänen, L., Where do financial constraints come from? An empirical analysis of adverse selection and moral hazard in capital markets, Small Business Economics, forthcoming.
Hyytinen, A. and Toivanen, O., Do financial constraints hold back innovation and growth? Evidence on the role of public policy, Research Policy, forthcoming.
The effects of legal system on SME finance Examples of recent/on-going work
Hyytinen, A. and Väänänen, L., Mandatory auditor choice and small firm finance: Evidence from Finland
Hyytinen, A. and Takalo, T., Corporate law and small business finance: Mandatory v. enabling rules, European Business Organization Law Review, 2005, Vol. 6, Issue 3, pp. 449-466.