We examine the role of demographics on the housing market in the Helsinki Metropolitan Area (HMA) using the Mankiw and Weil (1989) approach. First, we estimate housing demand for each age group in HMA using cross section data and find that it increases from childhood to the age 70-74 years. This...

It is well known that estimation of the labour supply function is complicated by the non-linearity of the individual’s budget constraint. Non-linearity may be caused by a number of factors such as the structure of the tax/benefit scheme or overtime rates. Non-linearities also cause problems in...

This study analyzes whether fiscal policy decisions have real effects on the economy of Finland, and if they do, what are the strength and durations of the effects. We utilise the Vector Stochastic Process with Dummy Variables (VSPD) method in our empirical work. This approach is a suitable tool...

Most of the empirical literature on consumption behaviour over the last decades has focused on estimating Euler equations. However, there is now consensus that data-related problems make this approach unfruitful, especially for answering policy relevant issues. Alternatively, many papers have...