Economics of households, firms and institutions
We analyse:
(a) The interaction between the institutional, social, cultural and economic environment in which firms, households and individuals operate and their consumption decisions and investments in human and physical capital. This also includes the role of perceptual factors which may affect household economic decision-making, investment and risk taking, such as the fear of future violence and economic disruptions.
An important element is identifying the effect of government and NGO interventions at the individual and household level. Research in this area blends theoretical models and micro econometric analyses.
(b) The design, implementation and the effects of domestic and international macroeconomic, financial and trade policies on economic development and inequality. Relatedly this line deals with the impact of exogenous shocks, such as the impact of (civil) war or the financial crisis.
Work in this area is characterized by a desire to empirically establish the microeconomic effects of macroeconomic policies and developments. Of particular interest are the conditions for and impact of graduation from LDC to middle income status.
