Euro Area member states have agreed to introduce a structural budget balance target to their national legislation (Treaty on Stability, Coordination and Governance). However, there exists no commonly agreed methodology to calculate this macroeconomic indicator. This report presents the...

In this paper, we describe key problems of the current EU's fiscal framework and offer constructive alternatives to reforming it. A comprehensive reassessment of the rules is necessary, as the development of the rules has reached an impasse for both political and technical reasons. In our view,...

Corporate investment is crucial for productivity growth. When economic growth is sluggish and productivity growth weak, the government is likely to compensate the shortage of tax revenues with debt. The aim of this research is to study the connection between public indebtedness and productivity...

The study evaluates the impacts of EU climate policy on the emission allowance price, electricity prices, the competitiveness of industry and macroeconomic developments in the third EU emission trading period 2013–2020. The economic impacts of climate policy on Finland are compared to the...

We summarize and compare previous studies considering the impact of R&D subsidies on firm-level labor productivity. These studies conclude quite consistently that the subsidies provided by Tekes do not have statistically significant impact on its client firms’ labor productivity. These studies...

A withdrawal of a member state from the EMU due to market pressure has been a rather popular topic in the public debate in recent years. However, the effects of a withdrawal have been analysed quantitatively surprisingly little. Discussions have been concentrated on the crisis countries, but as...

In this report, we analyze the Finnish R&D tax incentive scheme of the years 2013 and 2014. Under the scheme, firms were eligible for double corporate tax deduction incentive on labor expenses incurred for undertaking R&D activities. Our report consists of a literature review, an empirical...

We analyse how alternative reforms of the student financial aid would influence average study duration, government expenditures, and tax revenues. We also consider the reform that has been proposed by the current government (in 2016) which consists of lowering the monthly student grant and...

In this report, we follow up the situation of individuals having re-entered the labour market with the help of a so-called job bank. The follow-up period extends over the next two years after their job-bank-mediated transition into the open labour market. We present two different sets of results...