Self‐Evaluation Report 2000 to 2005 The Department of Economics March 2006 Prepared by Helmut Lütkepohl, Steven Poelhekke, Jessica Spataro doc IUE 62/06 (CR2) CONTENTS Contents 1 Introduction, Mission Statement, and Summary 1 2 The Postgraduate Programme 5 2.1 General Characteristics of the EUI Economics Postgraduate Programme 6 2.2 The New Postgraduate Programme ................... 7 2.3 Pedagogical and Supervision Assessment . 10 2.4 Future Challenges ............................. 10 3 Faculty 15 3.1 Turnover and Hiring of Faculty ..................... 15 3.2 Composition of Faculty .......................... 16 3.3 Current Full{Time Faculty ........................ 17 3.4 Former Full{Time Faculty ........................ 22 3.5 Secretarial and Administrative Support . 26 4 Research 27 4.1 Research Agendas ............................. 27 4.1.1 Microeconomics .......................... 27 4.1.2 Macroeconomics .......................... 28 4.1.3 Econometrics ........................... 28 4.2 Research Funding ............................. 29 4.2.1 Research Council Funded Projects . 29 4.2.2 Externally Funded Projects ................... 29 4.3 Research Activities of Current Faculty Members . 32 4.3.1 Anindya Banerjee ......................... 32 4.3.2 Giancarlo Corsetti ........................ 32 4.3.3 Pascal Courty ........................... 34 4.3.4 Andrea Ichino ........................... 35 4.3.5 Omar Licandro .......................... 36 4.3.6 Helmut LÄutkepohl ........................ 37 4.3.7 Massimo Motta .......................... 38 4.3.8 Salvador Ortigueira ........................ 38 4.3.9 Rick van der Ploeg ........................ 39 4.3.10 Morten O. Ravn ......................... 40 4.3.11 Karl Schlag ............................ 42 4.3.12 Richard Spady .......................... 42 4.4 Department Ranking ........................... 43 IUE 62/06 (CR2) i CONTENTS 5 Students 45 5.1 Application and Selection to the First Year . 45 5.1.1 Applications Statistics ...................... 45 5.1.2 The Selection Process ....................... 47 5.1.3 Student Intake .......................... 47 5.2 Exchange Programmes and Conference Participation . 49 5.2.1 The European Doctoral Programme (EDP) . 50 5.2.2 Other Exchange Programmes . 51 5.2.3 Conference Participation ..................... 52 5.3 Publications ................................ 52 5.4 PhDs Defended and Completion Times . 55 5.5 Careers of Economics Department Students . 55 5.5.1 The Placement O±ce ....................... 56 5.5.2 Employment Statistics ...................... 57 6 Report of the Students' Representatives 61 6.1 Year 2002-2003 .............................. 61 6.2 Year 2003-2004 .............................. 62 6.3 Year 2004-2005 .............................. 63 6.4 Year 2005-2006 .............................. 64 7 Visitors and Jean Monnet Fellows 67 7.1 Part-Time Visiting Faculty, Visiting Fellows and Students . 67 7.1.1 Part-Time Visiting Faculty .................... 67 7.1.2 Visiting Fellows .......................... 68 7.1.3 Visiting Students ......................... 69 7.2 Jean Monnet Fellows ........................... 69 7.3 New Fellowship Programmes ....................... 73 7.3.1 Max Weber Fellows ........................ 73 7.3.2 Fernand Braudel Senior Fellowships . 73 8 External Projection of the Department 75 8.1 European Investment Bank Lectures . 75 8.2 Conferences Held at the EUI ....................... 76 8.3 Conferences and Workshops Outside the EUI . 77 8.4 Departmental Homepage ......................... 78 8.5 Working Paper Series ........................... 79 8.6 Finance and Consumption Programme 2000-2005 . 79 8.6.1 Overview ............................. 79 8.6.2 Mission Statement ........................ 80 8.6.3 People ............................... 81 8.6.4 Research Activities ........................ 83 8.7 The Robert Schuman Centre ....................... 85 8.7.1 PAGE - Policy Analysis in a Global Economy . 85 8.7.2 Pierre Werner Chair Programme on EMU . 86 8.7.3 Fellows at the RSCAS ...................... 91 8.8 European Forum ............................. 92 ii IUE 62/06 (CR2) CONTENTS 8.8.1 European Forum 2005-2006 { A Growth Agenda for Europe, Directed by Rick van der Ploeg . 93 8.8.2 Jean Monnet Fellows for the European Forum 2005-2006 . 94 9 The Move to Villa San Paolo 97 9.1 The New Building ............................. 97 9.2 Adjustments to the Move ......................... 97 9.3 The Library ................................ 98 9.4 Computing Service ............................ 99 10 Conclusions: Achievements and Challenges 101 A Publications by Current and Former Faculty Members 107 A.1 Michael Artis* ...............................107 A.2 Pierpaolo Battigalli*, Universit`aBocconi . 109 A.3 Anindya Banerjee .............................110 A.4 Giuseppe Bertola*, Universit`adi Torino . 111 A.5 Giancarlo Corsetti ............................113 A.6 Pascal Courty ...............................115 A.7 Roger Farmer*, UCLA . 116 A.8 Andrea Ichino ...............................116 A.9 S¿ren Johansen*, University of Copenhagen . 118 A.10 Omar Licandro ..............................118 A.11 Helmut LÄutkepohl .............................119 A.12 Ramon Marimon*, Universitat Pompeu Fabra . 123 A.13 Massimo Motta ..............................123 A.14 Salvador Ortigueira ............................125 A.15 Roberto Perotti*, IGIER - Universit`aBocconi . 125 A.16 Rick van der Ploeg ............................126 A.17 Morten Ravn ...............................129 A.18 Karl Schlag ................................129 A.19 Richard Spady ..............................130 A.20 Frank Vella*, Georgetown University . 130 A.21 Eyal Winter*, Hebrew University . 131 B Theses Defended January 2000{December 2005 133 C Working Papers January 2000{December 2005 153 C.1 Working Papers 2000 . 153 C.2 Working Papers 2001 . 155 C.3 Working Papers 2002 . 156 C.4 Working Papers 2003 . 159 C.5 Working Papers 2004 . 161 C.6 Working Papers 2005 . 164 IUE 62/06 (CR2) iii CONTENTS D Workshop Programmes 167 D.1 Microeconomics Research Workshop 2000{2005 . 167 D.2 Macroeconomics Research Workshop 2000{2005 . 175 D.3 Econometrics Research Workshop 2000{2005 . 184 D.4 Robert Schuman Centre Seminar . 192 E Courses O®ered 2000{2005 199 F Supervision Assessment 205 iv IUE 62/06 (CR2) Chapter 1 Introduction, Mission Statement, and Summary This Report is prepared as part of the regular EUI cycle of self{evaluation reports. The previous self{evaluation report of the ECO Department was prepared in April 2000 and covers the period 1995 to the beginning of 2000. Therefore the present Report summarizes the developments during the six years from 2000 to 2005. The primary objective of the Department of Economics is to provide doctoral teaching and supervision to our students at the highest international level. An essential prerequisite for ful¯lling this objective is to perform research in economics and related areas satisfying high international standards. This Report is structured to reflect the way in which these objectives have been achieved during the previous six years. A major change in the life of the Department during the reporting period was its move from the Badia Fiesolana to the Villa San Paolo at the beginning of the year 2003. This move has a®ected the procedures within the Department and its relation to the rest of the EUI in a substantial way. For example, informal contacts with students, professors and sta® of other departments have become more di±cult and have hence been reduced. Moreover, access to the library and participation in general meetings, conferences and seminars organized in other buildings has become more di±cult and time consuming. In Chapter 9 it is described how the Department has dealt with the new situation and what it has done to compensate for the drawbacks of being in a remote location relative to the remainder of the EUI. We start our report with an account of the postgraduate programme in Chapter 2. Over the last few years the existing teaching programme of the ECO Department has been intensely evaluated and discussed so as to improve our service for the students and in response to what we see as our main duty, that is, to provide a training which is competitive at the highest world levels. As a result, a substantial reform of the ¯rst year programme and some implied changes in the programme for the higher years as well have been introduced starting with the academic year 2005/06. The details are spelled out in Chapter 2. The main component in providing our doctoral programme is of course the body of full-time faculty in the Department. The hiring policies pursued during the period under consideration and the members of faculty, current and former, IUE 62/06 (CR2) 1 CHAPTER 1. INTRODUCTION are presented in Chapter 3. At the beginning of the period covered by this report the turnover was high. Although some turnover has the advantage of a constant flow of new ideas, personalities and experiences, this can also have its drawbacks, in particular for the supervision of students. Therefore it is generally seen as an advantage that faculty turnover has reduced to normal levels during the last three years and is currently at a stable level. In Chapter 4 the Department's research activities are presented. The inter- action between the individuals involved in the departmental research process are highlighted. It will also become apparent that a large amount of work has a \Euro- pean" perspective. Clearly, good