Richard Tol leaves the ESRI

And he’s not gone quietly. Richard is leaving to take up a position at the University of Sussex, and I wish him well. Moving country when one has young kids is no joke. One doesn’t do these things lightly. Richard has made some important points in relation to Irish public policy on Twitter, in relation to the ESRI and the Irish economy in the Irish Times, and a bit of both today on the News at One (link is to .mp3, about 3:40 in). These are worth highlighting for three reasons.

1. Richard has criticized the independence of the ESRI with respect to its funding sources and the conclusions of its research, especially in areas away from their sometimes trenchant criticism of the Department of Finance. This is a serious matter which deserves some comment by the ESRI in my opinion.

2. Richard now joins 6 or 7 senior academic economists, including world leaders in their fields like Profs Kevin O’Rourke and Liam Delaney, leaving Ireland for more or less the same reason–they see a decade of austerity ahead for Ireland, they feel Irish academia has less to offer them as a result, and because they are research active and employable elsewhere, they are going. This is a problem for Irish academic economics going forward.

3. Most importantly, I think, Richard is a dissenter in many areas of Irish public policy and public life. He has his opinions which, while we don’t have to agree with them all (I certainly don’t), should be respected and given an airing. The fact that he didn’t find a home to adequately voice these opinions is a shame, and something I think we are poorer for as a result.

Regulatory Reform and Economic Performance

The Memorandum of Understanding between the Irish government and the troika of EU, ECB and IMF was agreed in December 2010. It contained commitments to policy changes designed to improve competitiveness through acting on professional service costs, the structure of the energy sector and similar matters. Several commentators on this site have been arguing recently that the new government is delivering austerity without reform. Here’s an interesting recent article from the Economic Journal and an earlier version on open access if you cannot get into the ucd online library.

Guglielmo Barone and Federico Cingano conclude that OECD countries which have gone furthest in tackling anti-competitive practices have enjoyed enhanced performance in industry sectors which are consumers of the products and services of the formerly rent-absorbing firms and professions.

Their conclusions are supportive of the MoU reform agenda, and of the recommendations in the report of the State Assets Review Group on vertical separation (unbundling) in the energy sector.

Happy New Year to you and yours.

Kilkenny Cats, Heterodox Economics and Economics Blogs

The latest issue of The Economist features a leader on the contributions of economics blogs and a briefing article that highlights the role of blogs in promoting various heterodox economic hypotheses (including the MMT advocated by various commenters here).

Howlin signals economists to be hired for analysis brief

The Irish Times reports on this development in this article.

A tale of three countries: recovery after banking crises

Zsolt Darvas at Bruegel compares the experiences of Iceland, Ireland and Latvia in this new paper.