The Covid-19 pandemic and the current crisis have demonstrated that the government’s ability to support the economy is crucial. Given the persistent deficit in public finances, the new government term should start with a credible fiscal adjustment plan. The tightening of EU-wide climate policy will also affect Finland.
Economic Policy Council will publish its annual report on the economic policy of the government and fiscal sustainability on February 1, 2023. An open seminar will be held for anyone interested in the report and themes such as green transition.
According to a background report for the Finnish Economic Policy Council, lump-sum transfers are better at improving the equity of fuel taxation compared to reductions in income or fuel taxes. Tax reductions would disproportionately benefit high-income households. Furthermore, reductions in fuel taxes could create harmful incentives to increase driving.
VATT's research professor Tuomas Pekkarinen died of an sudden attack of illness.
Housing is a big issue - we spend tens of billions on housing and it touches everyone of us. The housing market brings authorities, businesses and households together in many different ways - and with varying interests. With the help of research-based knowledge we are able to improve housing policy, make housing markets more fair and improve overall wellbeing.
Housing allowance was reformed in Finland in 2015 so that the size of the allowance was no longer dependent on the size of the dwelling. This reform significantly increased housing allowance for small homes. It was feared that the increased support for small homes would raise rents, diverting the benefits into the pockets of landlords. A recent study by VATT has shown, however, that the changes to housing allowance did not have a significant impact on rents.
To support evidence-based decision-making, a unit was established in Finland that is unique even by international standards. The Data Room, which has been granted funding for three years, is an independent unit of VATT Institute for Economic Research. It will work in close cooperation with Helsinki Graduate School of Economics GSE and Statistics Finland. Applications are now being received for the position of the Data Room’s director.
The launch of the Finnish centre for excellence in tax systems research takes place on Thu Sept 1 in Tampere. The event's keynote speech is held by Professor Joel Slemrod (MIT), internally acclaimed economics researcher and pioneer in tax systems research.
We interviewed Tuomas Pekkarinen for our researcher introduction series. Read the text below to see what Tuomas is working on.
2035Legitimacy 
SustAgeable 
Taloustieteen taju 
Skills, Education and the Future of Work 
My Path 
BCDC Energy 
Work, Inequality, and Public Policy 
Smart Energy Transition 
Economicy Policy Council 
Government's Analysis, Assessment and Research Activities 