Research Strategy 2008-2012

IEHAS has a long-standing reputation of a leading economic research institute in Hungary. It is an independent, non-profit academic institution dedicated to high-quality theoretical and applied research in economics. Its mission is to achieve internationally acclaimed academic results while also focusing on timely economic policy issues. A thorough analysis of empirical evidence is a key feature of its approach. For this purpose an expansive data base has been built up at IEHAS and emphasis is placed on the continuous advancement of methodological skills.

IEHAS offers science-based insights into the weighty real life challenges facing the Hungarian economy and the EU region, thereby contributing both directly and indirectly to better policy making. It pays growing attention to the dissemination of research results through publications including on-line availability, as well as seminars, workshops and other forms of public engagement. IEHAS is commited to finding and supporting young talents and to making its contribution felt in Hungarian higher education.

The academic activity of the IEHAS is divided into seven research units which are:

Industrial ORGANIZATION

The organization and patterns of markets and industries are considered by the unit as the starting point in the analysis of the economy. It focuses on the activities of two players: the firms and the state formulating industrial and public policy. The centre of the research is the underlying causes of changes in corporate governance, corporate finance, firm size (including mergers), boundaries of the firms (innovation, internal production, outsourcing). Its studies have both theoretical and empirical flavor and based on rigorous collection and examination of economic facts. This approach is followed in our recently launched yearbook series entitled Competition and regulation which covers the state-of-the-art issues of competition and regulatory policies.

Labour Research

The research conducted by the members of the unit covers a wide spectrum of issues. Beyond the in-depth analysis of the Hungarian and Central and East European labour markets topical questions of the informal economy, pension system, consumption patterns and regional inequalities are addressed as well. Theoretical and micro-econometric issues are also being dealt with. Several members have been involved in the evaluation of Hungarian employment policies and carry out expert work for both Hungarian and international organizations. The unit publishes its own working paper series and a year-book (The Hungarian Labor Market). The unit has contributed to the development of the data bank of the IEHAS comprising of harmonized waves of wage and labour force surveys.

Economics of Education

The main objective of the unit is to integrate different directions of research that might make a significant contribution to the reform of the secondary and higher education in Hungary into a common framework. The aim is to conduct new and innovative research in the field of the theory and economics of education, utilizing large sample databases made in recent years and also being under development. The results are supposed to support policy-making directed to the modernization of the Hungarian education system.

Macroeconomics and Growth

The aim of the research team is to elaborate the links between micro-foundations of growth and economic policies in an open economy. Theoretical considerations and models are tested on enterprise and product data. The relation of macropolicies - monetary, fiscal, etc. - to other policies, such as research, development and innovation is also investigated with direct relevance for the emerging economies of Europe. Cross-border research cooperation has been a strong feature of the unit thanks to which the scope of research has been enlarged to include issues of international division of labour, competition and innovation. 

Globalisation, EU-integration and Convergence 

The research unit aims at analysing the old and new features of globalization that have evolved through the past decades and will essentially influence developments in the coming years. Research covers the implications of growing openness of national economies and the consequences of cross-border relocation of production and services. The unit strives for deeper theoretical understanding, but it also takes on as task to assist decision makers in navigating through such novel economic phenomena. The progress of European integration is part of the globalisation process, but it also holds key significance for almost every aspect of economic and social development in EU member states. The analysis of critical issues of EU-integration requires profound understanding of the relationship between global, regional and national economic behaviour. For emerging economies, such as Hungary, a question of utmost importance is how to reform the outdated structures of the past, how to enhance fast development – without causing major social and economic dislocations. Research in this direction is mainly carried out in a comparative framework, and conclusions are formulated with the aim of supporting the catching up process.

Public Economics and Public Policies

The unit conducts research in public economics and public policies and coordinates related activities within IEHAS. Its projects endeavour to investigate the interaction of public services and finance, public policies and markets, the role of government levels, the relationship of social partners, relying on fiscal federalism, new economic geography, industrial relations, bargaining theories and median-voter theorem.

Agricultural Economics and RuralDevelopment

The research goal of the unit is to analyze economic problems related to food, agriculture and rural areas, with an emphasis on policy issues. Special attention is devoted to the development of the agricultural and rural sectors in Hungary and in other Central and East European countries, focusing on changes caused by transition and the EU enlargement. The research is divided into five subfields: (a) international, particularly EU trade in agricultural products – testing and applying new theoretical findings; (b) vertical co-ordination in agri-food sectors and the issues of horizontal and vertical cooperation within agricultural chains in Hungary; (c) the development of agricultural prices and markets and addressing the question of how the European integration process has affected agricultural price transmission in Hungary; (d) the impact of macroeconomic policies on the agriculture in CEE countries; (e) the analysis of the EU "LEADER" Programme and the concept of integrated rural development.

Many of the IEHAS research projects are embedded into domestic and international research programs that also serve as the main source of research finance. During the last decade the main financing partners were the Hungarian Scientific Research Fund (OTKA), the National Office for Research and Technology, the Framework programs of the EU and the European Science Foundation. IEHAS has developed an extended network of cooperation with universities both in Hungary and abroad and the exchange of ideas within these networks proved to be mutually beneficial. From the point of view of the utilisation of research results and adding substantially to the financial resources IEHAS also strives for cooperation with government agencies and private companies while keeping core values of independent thinking and academic freedom intact.

IEHAS strongly encourages the researchers o publish their work in top quality academic journals. Intermediate research results should be disclosed at a variety of fora, such as discussion papers (including the IEHAS’s own on-line series), domestic and international seminars, workshops and symposia. Depending on the subject monographs have also a place in the dissemination plan of IEHAS.

On the side of human resources the main strategic pillar of IEHAS is the recruitment of young and ambitious researchers. One way of identifying young talent is through further strengthening the ties with the doctoral programmes of universities through involvement in teaching and supervising. The reputation of and the research conditions at IEHAS should be improved so that internationally recognized scholars find it attractive to participate in the projects of the Institute both on a regular and ad hoc basis.

IEHAS boasts a broad and high quality database in labour market, household, regional categories and international trade. Considerable efforts were given to make the collected data and indicators as accurate and user-friendly as possible. This valuable asset of IEHAS should be continuously up-dated and extended. Data owners can authorize access to data to researchers outside IEHAS. IEHAS strives to widen the scope of the potential partners including governmental bodies contributing thus with its unique analyses of micro data to a more evidence based policy making.