The department has been researching for a long time the economic problems associated with the transition from plan to market and recently the importance of institutions in economic development. Specific areas of research are:

• The economic impact of gradual and big bang reforms ;
• The determinants of foreign direct investment
• The importance of formal institutions (private property rights, constitution, financial institutions, political and economic freedoms, etc) for economic outcomes ;
• The importance of informal institutions (trust, reciprocity, social capital, corruption, business environment) economic outcomes ;
• Government efficiency;
• The importance of institutions for the relationship between prosperity and environmental outcomes.

Part of the research wihtin the cluster "international economy" is specifically focused on the effect of different financial systems on economic outcomes. Attention is paid to the following issues

• Causes, anatomy and consequences of financial crises in the interbank market ;
• The importance of market discipline in banking markets;
• The effects of deposit insurance on the behavior of banks and depositors;
• Efficiency of financial institutions (both technical efficiency and risk-return efficiency) ;
• Operation of IPO markets;
• Comparison of venture capital in different countries.