Research in macroeconomics at IRES covers many aspects of macroeconomics theory, including macro-dynamic models (e.g. overlapping generations or Ramsey models), general equilibrium, computational economics and calibration methods, macroeconometric models, quantitative macroeconomics and historical analyses.
Research in macroeconomics is organized around six main areas:
I. Short-run macroeconomics
Our team, supervised by Vincent Bodart, analyzes cyclical fluctuations and elaborates short-term forecasts for the Belgian economy. We produce a quarterly detailed report discussing recent economic developments in Belgium and providing short-term economic forecasts. We also analyze business cycle fluctuations and the effectiveness of macroeconomic policies in Belgium.
Another project, led by Henri Sneessens, uses DSGE models with heterogeneous agents to analyze the dynamics of productivity and risk premiums.
Main publications in 2015-2016
Bodart, Vincent; Carpantier, Jean-François. Real exchanges rates and skills. In: Journal of International Money and Finance, vol. 67, p. 305-319 (2016).
II. Economic development and growth theory
IRES research on growth and development theory has been very active in recent years and has given rise to many publications.
Several projects are led by David de la Croix. They cover research topics such as the role of longevity in the transition from stagnation to growth, the effect of fertility of demographic convergence, the analysis of the impact of failing institutions on economic growth or the relationship between the decision to have children (and especially childlessness) and economic development. Another project in this area, led by Fabio Mariani, focuses on the links between life expectancy (longevity) and the environment. Another research, by Luca Pensieroso, studies the relationship between intergenerational living arrangements and economic growth. Related to this theme, Fabio Mariani and Luca Pensieroso analyse the relationship between economic growth and the changes in the family structure .
Main publications in 2015-2016
d’Albis, Hippolyte; Moosa, Dalal. Generational Economics and the National Transfer Accounts. In: Journal of Demographic Economics, Vol. 81, no. 4, p. 409-441 (December 2015).
de la Croix, David; Iyigun, Murat. Editorial introduction. In: Journal of Demographic Economics, Vol. 81, no. 1, p. 1-2 (2015).
III. Economic development and migration
Our team is also involved in numerous researches on migration and economic development. In a first study, Frédéric Docquier and David de la Croix analyze the links between the brain drain and economic development. Second, we investigate the effects of international migration on the geographic distribution of human capital and its implications for the world economy (Frédéric Docquier). In a third project in migration, we look at the effect of migration on the welfare of residents in the receiving countries (Frédéric Docquier). Fourth, in a project led by Sara Salamone we explore the effect of migrants’ education and gender on the amount of remittances that are sent. Fifth, a project led by Fabio Mariani analyzes the welfare and growth effects of immigration with equilibrium unemployment and endogenous skill accumulation. Lastly, we are investigating the relationship between illegal immigration and the shadow economy (Fabio Mariani, Luca Pensieroso and Carmen Camacho).
Another project led by Frédéric Docquier, related to economic demography, aims at quantifying the size and structure of international migration.
A last research (Frédéric Docquier) indirectly linked to migration, evaluates the effect of labor force diversity on the performance of firms.
Main Publications in 2015-2016
de Arce, Rafael; David, Anda; Mercier, Marion; Mahia, Ramon. Reintegration upon return: insights from Ecuadorian returnees from Spain. In: International Migration, Vol. 54, no.6, p. 56-73 (December 2016).
Ariu, Andrea; Docquier, Frédéric; Squicciarini, Mara. Governance quality and net migration flows. In: Regional Science and Urban Economics, Vol. 60, p. 238-248 (2016).
Beine, Michel; Docquier, Frédéric; Özden, Çağlar. Dissecting network externalities in international migration. In: Journal of Demographic Economics, Vol. 81, no. 4, p. 379- 408 (December 2015).
Docquier, Frédéric. Émigration, capital humain et développement : enseignements des recherches récentes menées à l’IRES. In: Reflets et perspectives de la vie économique, Vol. LV, no. 1, p. 73-87 (2016).
Docquier, Frédéric; Leruth, Luc. Économie du développement en Belgique – Aperçu des tendances actuelles en matière de recherche. In: Reflets et perspectives de la vie économique, Vol. LV, no. 1, p. 5-8 (2016).
Docquier, Frédéric; Lodigiani, Elisabetta; Rapoport, Hillel; Schiff, Maurice. Emigration and Democracy. In: Journal of Development Economics, Vol. 120, p. 209-223 (May 2016).
Mercier, Marion. The return of the prodigy son: do return migrants make better leaders? In: Journal of Development Economics, Vol. 122, p.76-81 (2016).
IV. Quantitative macroeconomics
Our team is also involved in the relationship between labor markets, fiscal policies and debt management. Some research study the impact of household decisions (such as labor supply and saving decisions) on aggregate macroeconomic phenomena. Another project looks at the effect of fiscal policies (and taxation) on sustainability of debts. Finally, another research project focuses on fiscal policy and heterogeneity in the economy. These projects are led by Rigas Oikonomou.
Main publications in 2015-2016
Mankart, Jochen; Oikonomou, Rigas. The rise of the added worker effect. In: Economics Letters, Vol. 143, p. 48-51 (June 2016).
V. Sustainable growth
The concept of sustainability is central in growth and development theories. Our team - Isabelle Cassiers and Géraldine Thiry - is involved in a project that relates to the measurement of prosperity along the growth path. Multidisciplinary research can undoubtedly feed and enrich the economists’ approach by incorporating those of philosophers, sociologists, lawyers, medical specialists, agronomists, and engineers. In the context of this project, a specific focus has been put on indicators beyond GDP.
Main publications in 2015-2016
Cassiers, Isabelle. Changer d’indicateur pour changer l’avenir. In: Agir par la culture, no. 45, p. 19-20 (Spring 2016).
Cassiers, Isabelle. Le Bhoutan nous interpelle : bonheur national brut et nouveau paradigme de développement. In: Mille Lieux, no. 01, p. 40-43 (April 2016).
VI. History of Macroeconomics and economic history
Our first historical project, led by Michel De Vroey, is the history of macroeconomics from Keynes up to the present. The objectives are to describe and analyze the history of macroeconomics, and highlight the sweeping changes that have occurred within it.
Another project, supervised by Isabelle Cassiers, concerns the analysis of half a century (from 1944 to the present time) of economic growth and crisis, institutional and social changes.
Our third historical topic is the analysis of the Great Depression, using dynamic general equilibrium (DGE) models (Led by Luca Pensieroso and Michel De Vroey).
Main publications in 2014-2015
De Vroey, Michel. Response to the Comments. In: Oeconomia. History, Methodology, Philosophy, vol. 6, No. 1, p. 149-152.
The faculty members involved are Vincent Bodart, Isabelle Cassiers, David de la Croix, Michel De Vroey, Frédéric Docquier, Fabio Mariani, Rigas Oikonomou, Luca Pensieroso and Henri Sneessens. The team also includes senior researchers, Bastien Chabé-Ferret, Fatemeh Shadman Metha, Paula Gobbi, Sara Salamone and Geraldine Thiry.
