Economics and Psychology One-Day Conference

The importance of integrating both psychology and economic history into economics and economic policy has been borne out in recent years (see my Kenmare talk for brief overview of some recent developments in behavioral economics). For the last five years or so, we have been holding some events to develop research at the intersection of economics and psychology in Ireland. The speakers are a mix of PhD students, researchers in public institutions and academics. This year’s main session take place at the Geary Institute on Friday November 25th. All are welcome. Please RSVP to geary@ucd.ie There will be a special issue of the ESR based on some of the papers from this year’s session. The panel session will be used to discuss how developments in the recent literature have policy relevance. There is no registration charge.

Programme:

9.00: REGISTRATION


9.15: Organ Donation and Individual Consent- The role of Family Consent in Donation Systems.
Clare Delargy- UCD Geary Institute

9.45: Credit Cards: Friend or Foe.
Yvonne McCarthy – Central Bank of Ireland.

10.15: Understanding Taxpayer Behaviour – New Opportunities for Tax Administration.
Keith Walsh- Revenue Commissioners

10.45: BREAK

11.00: Deity and Development: A Study of the Impact of Religious Culture upon Social and Economic Development.
Ryan McKee- Queen’s University Belfast

11.30: The Role of Economic Psychology in Students’ Term-Time Employment and Academic Achievement.
Martin Ryan- UCD Geary Institute

12.00: LUNCH

13.00: Corruption and Well-Being
Rob Gillanders – University College Dublin

13.30: Subcultures in Household Financial Decision-Making: An Exploratory Study of Risky Asset Ownership in the Netherlands.
Michael Dowling- DCU

14.00:BREAK

14.15: Behavioural Economics and participation in recycling programmes
Marie Brugligio- University of Malta

14.45: Behavioural Economics and Policymaking: Learning from the Early Adopters.
Pete Lunn, ESRI

15.15: BREAK

15.30: Behavioural Economics and the Irish Pension System
Liam Delaney- Stirling University and Geary Institute

16.00: Is the health impact of socioeconomic status explained by objective financial resources or subjective social status?
Michael Daly – Manchester and Aberdeen.

16.30: Panel Discussion

Irish Society of New Economists

The programme for this year’s Irish Society of New Economists conference is available on the website www.isne2011.com.  The conference is organised by  Svetlana Batrakova, Alan Fernihough, Rob Gillanders and Mark McGovern of UCD. They have done a terrific job and the programme is very varied, with talks across many fields of Economics. Keynote speakers are Morgan Kelly of UCD and Peter Neary of Oxford.

It will take place on Thursday 18th and Friday 19th August. All are welcome to attend (there is no conference fee). However those going should email the organisers in advance (isne2011@gmail.com) beforehand, as the building rules require pre-registration for entry.

Economics and Psychology One-Day Conference

The fourth one day conference on Economics and Psychology will be held in the UCD Geary Institute on November 25th. The purpose of these sessions is to develop the link between Economics, Psychology and cognate disciplines in Ireland. A special theme of this year’s event will be the implications of behavioural economics for public policy. Abstracts (200-500 words) should be submitted before August 31st to Liam.Delaney@ucd.ie. Selected papers will feature in a special issue of the ESR policy section. Those wishing to have their paper considered should submit a draft before the November 25th session. Final drafts will be submitted for external peer review in January 2012.

Revised Employment Control Framework

The ECF for the higher education sector has been revised. Many elements from the last version have been changed. The last draft introduced a range of measures including: the need for specific pre-approval of all individual posts (exchequer funded or not) from a small central government committee; specific quotas for each university regardless of how successful or not they actually were in attaining research income; and decisions made on the suitability of academic hires on the basis of their alignment to government strategy documents.

The new version is a vastly improved document. All of the above elements have been removed. There are sector-wide quotas, in keeping with the need to reduce costs, but allocation with respect of research posts to each university will depend, as you would expect, on how much of the research funding the university actually wins in the competitions administered by SFI, HRB etc., Furthermore, the specific pre-approval process has been shelved as has the frankly puzzling attempt to impose quotas on posts secured from non-exchequer funds. The latter should surely be welcomed by everyone.

The main reason for a revised employment control framework was to deal with pension liabilities arising from contract research staff. In this regard, the new draft forces a fully-funded proviso on to all new grant applications, with grant applicants (exchequer or non-exchequer) now being required to cost 20 per cent of employee salaries into grant applications for pension purposes, starting with new applications. This is a blunt way of dealing with this issue, and there should be further debate on this. In general, the treatment of contract researchers as if they were civil servants in terms of contracts and pensions is one of the defining issues in Irish research at present. It continuously creates confusion on all sides. Attracting bright researchers to Ireland is a legitimate goal of government policy supported by much research on how to create thriving cities. Placing such contractual and bureaucratic impediments to this is counterproductive and groups that represent contract researchers have been among the most vocal in pointing this out.

Hopefully, the new document signals a more productive debate about higher education in Ireland and an improvement in the relations between the universities and the state, which seemed to have degenerated substantially at the beginning of this year. Universities do contribute to both economic growth and to the development and maintenance of healthy democracies in ways that go beyond the current linear big-tech innovation models being employed by government. Attracting top researchers into Ireland on a much larger scale funded by a much more diverse range of sources is one avenue that the country still has open as an attainable policy goal even at a time of dwindling resources and, in fact, reductions in property prices and the general cost of living may make Ireland a more attractive place for European-funded researchers as these grants have retained their nominal value.

Decision-Making Biases and the Irish Banking Crisis

An interesting new working paper by Peter Lunn in the ESRI looks at decision-making biases and the Irish banking crisis. The article outlines extrapolation biases, confirmation bias, overconfidence, ambiguity aversion, behavioural convergence, time inconsistency and loss aversion as potential contributors to the banking crisis. There is a lot of interesting material in the article. One issue I have is that many of the biases outlined are general mechanisms and so don’t give a theory as to why Ireland, in particular, had such a dramatic crisis that was so systemic. I think ultimately a behavioural theory of the Irish banking crisis should have some interaction mechanism perhaps with country size or network density. Another area that I think should be developed is the extent and determinants of underdiversification in Irish household wealth portfolios both in terms of country concentration and asset class concentration. I am writing a lengthier comment on this and will link from this post, but put the paper up for now for info.