The Economics Research Centre produces rigorous analyses on issues of the Cypriot economy using novel and state-of-the-art methodologies building upon the in-depth institutional knowledge of the local economy the Centre has acquired the last decade. The analyses produced by the Centre are communicated to a wide range of audiences, including the scientific community, governmental organisations, NGOs, trade unions, media and the wide public. Our research activities are covered by the following sectors:
Microeconomic and welfare analysis
The sector is responsible for analysing topics relevant to the economic welfare of the households, the role of state (with an emphasis on the impact of fiscal policy) and the productivity of Cypriot firms. Topical issues which are currently on the research agenda of the sector include the estimation of the output gap in Cyprus, the study of inequality and poverty, the impact of social policy, the analysis of the behaviour of individuals in the labour market and their retirement decision, as well as the construction of productivity indices for the Cypriot economy. The responsibilities of the sector also include the maintenance and updating of the tax-benefit microsimulation model for Cyprus which is part of the European model EUROMOD and the coordination of the field research conducted for the collection of data for individuals aged 50 and over as part of the European research project SHARE. The research outcomes of the sector address a wide audience including academics, researchers and policy makers and are published in the CypERC Economic Policy/Analysis Papers, in peer-reviewed academic journals or as policy reports.
Macroeconomic Forecasts and Analysis
The sector focuses on the development of models/tools for macroeconomic analysis of the Cypriot economy and the construction of forecasts for macroeconomic indicators. Details about the methodologies employed for macroeconomic analysis and forecasting are published in the Economic Analysis/Policy Papers series of the Centre.
GDP growth and inflation forecasts are published on a quarterly basis along with an analysis of recent developments and outlook for the Cypriot economy in the bulletin Economic Outlook.
Moreover, the sector coordinates the programme for the measurement of economic confidence in Cyprus via the conduct of surveys among business executives in different sectors of the economy, and among consumers. Business and Consumer Surveys in Cyprus are carried out within the framework of the Joint Harmonised EU Programme of Business and Consumer Surveys. The Surveys record business executives' and consumers' perceptions of current economic conditions as well as their expectations concerning the evolution of economic variables. The results of the Surveys are published on a monthly basis in the bulletin Business and Consumer Surveys.
The sector also deals with the construction of property price indices for Cyprus.
This field of research at CypERC is pursued under a Project funded by the European Research Council and directed by the Nobel Laureate Prof C. Pissarides. It focuses on the study of employment and unemployment in Europe and examines issues such as: job creation by sector; wage inequality; public sector employment and wage subsidisation relative to the private sector; the compatibility of welfare state with EU targets for employment and the number of jobs vis-à-vis the hours worked for each job.
Other Research Projects
In addition to the five areas listed above, research at CypERC is further diversified through the study of specialised topics, such as long term energy planning in Cyprus, students' earnings expectations and asymmetric price adjustment in retail gasoline markets.