Economics

Within the Business School, the Department of Economics at Aberdeen has a well-established tradition of research in applied economics, particularly in the areas of Labour Economics and Natural Resource Economics. There is also a growing strength in Experimental Economics, and a range of individual research interests in macroeconomics, methodology, institutional economics, and regional economics. In addition, the Business School has an international reputation in the cognate areas of Finance and Property, while there are especially strong links between the Economics Department and Health Economics Research Unit, one of the leading centres in health economics in Europe.

The Scottish Institute for Research in Economics (SIRE)

The Scottish Institute for Research in Economics (SIRE) is the outcome of a substantial investment in Economics Research in Scotland (approximately £21 million over 5 years) by the Scottish Funding Council and ten participating universities. It builds on the distinguished tradition of Economics in Scotland, with eminent contributions from, among others, Adam Smith and David Hume. SIRE pools key areas of strength within the Scottish Economics research base in three thematic programmes, Behaviour, Incentives and Contracts, Work and Well-being and Macroeconomics, Financial Linkages and the Regions. Aberdeen is primarily involved in the Work and Well-being Programme.

Experimental Economics

Experimental methods now play a pivotal role in enhancing our understanding of how markets work, and how individuals make decisions. Their importance was recognized when Daniel Kahneman (Princeton) and Vernon L. Smith (George Mason University) were awarded the Nobel Prize in Economic Sciences in 2002. Recent research at Aberdeen in this area includes, experimental studies of bargaining, auctions, of learning, public good contribution, and matching in the labour market.

Part of the work on auction design contributed to the design of the 3G Telecommunications auctions used successfully by the UK Government.

Finance, Macroeconomics and Property

The integration of financial, product and factor markets is important in determining the effect of macro shocks and the effectiveness of macroeconomic policy. Recent research in this area in the Business School in Aberdeen includes work on the relationship between the financial and real economy, on asset pricing, volatility and exchange rates. This work also has strong links to the research undertaken by the Real Estate economists at Aberdeen, which includes research on the role of real estate in asset portfolios, the dynamics of house prices, and the operation of commercial rental markets.

Health Economics

The demand for health care has grown rapidly over the last decade, with all western countries spending an increasing proportion of their GDP on Health. The demand for health care has grown rapidly over the last decade, with all western countries spending an increasing proportion of their GDP on Health. Research in Health Economics aims to help find the best ways to provide health care. Recent research at Aberdeen has included work on techniques for preference elicitation, health inequalities and resource allocation, health service workforce issues, and the quality of life and wellbeing.

Labour and Personnel Economics

Labour economics is concerned with the use and reward of human resources and therefore plays a central role in understanding the relationships between work, pay and well-being. Aberdeen has a long tradition of research in this area with recent work including research on the empirical modelling of the incentive effects of labour contracts, theoretical analysis of labour market contracting, public sector pay and performance, and spatial differences in the performance of labour markets.

Natural Rseource and Environmental Economics

The interplay between economic and political decisions and natural resources and the environment issues are increasingly important in society. Aberdeen has a long established reputation in resource and particularly energy economics. The Official History of the North Sea, commissioned by the Prime Minister, is currently being written within the Department. Other recent research in this area includes work on the design of environmental markets, environmental valuation, fisheries economics, and farm household behaviour.

Postgraduate Research

PhD research in Economics is ESRC recognized within the Scottish Graduate PhD programme (ScotGrad) and has a very successful record in PhD supervision. There are also a range of possible sources of funding for PhDs at Aberdeen.