History and business are rarely taught or even studied together. That’s a pity. Economic history, as subject, has disappeared down the memory hole. What is more worrying perhaps is that the methods of historical analysis, careful source text reinterpretations, critical data analysis and a cool analysis, are not often applied to business. Enter Jill Lepore, a Harvard historian, to remind us why this ahistorical business analysis is a weak approach Continue reading
In late 2013, Stephen Kinsella and I undertook a survey of Irish economics and finance academics. We asked a bunch of questions on what they felt was core and not in the subject, on how things had changed in teaching over the last 5 years, on their views on the subject etc. We are writing this up as a paper with additional commentary and some suggestions on how to improve things but in the meantime we are presenting it at a conference organized by the Irish Economics Association on Friday 31 Jan 2014. (Update : Stephen has unavoidable work commitments and I have unavoidable personal/family commitments that make it impossible for us to attend. Hope this blogpost fills the gap partially)
Here are slides on this presentation. Here is a powerpoint show with my narration – this is quite large ( ±100 mb) so be warned – but it gives a much better sense of how we feel than just the raw slides alone. This is my take. Others, including Stephen, might not agree with any or all interpretation, so please recall that.
What’s the takeaway?
- We surveyed 300+ academics and got a fairly poor response. It was surprising how little people seemed to care about the profession. We unashamedly concentrated on university and macro/finance. We couldnt be sure of a full sample in IoTs. And we want to first see what the academics think before maybe moving onto the industrial.
- Modal respondent is 10y plus in academia, has a PhD doesnt have a professional training.
- only 11% are teaching in an area v close to their research – research led teaching seems a long way off
- average undergrad contact time is 57% of total teaching.
- Most economists think the government should put more money into economics education …mmmkaaay
- Despite the preponderance of evidence, the respondents dont think that studying economics makes you more selfish
- They firmly think its a science (three words – Prescott, Sims, Nobel…)
- Respondents want a broader focus in economics teaching BUT also want more math and DONT want it taught as part of management or social sciences. Greetings from Isolation Hill.
- There is no sense that the profession should sort out its internal disagreements on fundamental issues (and these are many and stark) before speaking out.
- Theres a very traditional skills led view of what should constitute the core. Amazingly only 33% think that a survey of irish economic conditions should be in the core.
- Theres a deep suspicion of accounting. Which is worrying as its the language of business. Most graduates wont go indon’tesearch but become part of the business workforce. Despite this there’s a feeling that SME finance is important. This is not logical.
- Most come across as technological illiterates. While there is considerable use of anti-plagiarism software there is much much less use of even things like interactive clickers (or apps for same), or the use of social media for engagement.
- compared to 5 years ago
- more time is being given to labour market issues, to debt dynamics and to DSGE. The latter is worrying as these are in essence (and imho) useless. See the series of takedowns by Noah Smith (search for DSGE). We also spend more time on the microstructure of financial markets, on models of bubbles and networks, and on the role of financial institutions. More time is spent on expansionary fiscal contraction, hopefully debunking its existence (but I wouldn’t be too sure) . That old trope of the Regan era, Trickle Down Economics, gets more time, as does privatisation and endogenous growth. If I had to call it, I would suggest that finance teaching has taken more cognizance of the crisis than has mainstream macro teaching in Ireland.
- Less time is being spent on very little. Keynesian Cross models – this is interesting as an implication of the KC model is that there can be a equilibrium with less than full employment and with recession – that might be a useful idea to implant in peoples minds, no? Maybe its seen as dangerous.
- For the most part people teach the same , more or less, than they did 5 years ago. Despite the massive wrench in the actual economy, the academy seems to be broadly unchanged in how and what it teaches. This must change.
This is an significantly extended version of an OpEd published by myself and Charles Larkin (whose name appears missing) in the Irish Times.
The Universities (Amendment) Bill 2012 is a shutting of the stable door after the horse has bolted and the stable sold off to a developer. It is kneejerk reaction by regulators who have failed to keep time with the pace of change in modern tertiary education, with changing educational markets, or with the balance of accountability and flexibility needed to successfully confront national and international challenges. While slapping down bolshy universities may have populist appeal, we should beware of Greeks bearing gifts. In that regard, the present proposals are a transparent attempt by the civil service to take control of the sector by plugging university policy into a centralised and dirigiste Civil Service model, and to neuter both Governing Authorities and the HEA. Irish universities used, prior to the existence of the HEA, be controlled by the Dept of Education, an unhappy time for both sides.
The core issues driving these radical proposals are payments of unauthorised allowances and an alleged breach of the Employment Control Framework in respect of promotions. In reacting to them, we need to decide what we want academia to provide for the State and how universities as institutions can best serve the common good. As in all things proportionality is also worth striving for. In an environment where universities are being placed front and center in the drive for “the smart economy” we might want to consider if command and control from bureaucrats with neither empathy for nor practical experience of these institutions is a good idea. As in so much of the education sphere the government is sending mixed messages – we want a knowledge economy but cut back on science teaching at lower levels, we want a world class university system but spend less than the OECD average on tertiary education (52k over the college span versus OECD average of 57k and EU average of 62k), we want to widen educational access but end up with no effect from “free fees”, we want more international students but make the visa and immigration process distinctly unfriendly … And now we want to have an innovative and responsive sector under the control of the civil service. To be charitable, the evidence to date for the civil service to take on board change and to assimilate rapidly changing environments is poor.
Take the ECF issue. Universities employ thousands of highly qualified internationally mobile staff. When promotion and retention decisions have to be made quickly in a fast moving and often volatile environment, there are always chances of bureaucratic feathers being ruffled. Promotion, retention and appointment must be undertaken at the pace of the needs of the students and research funders and not at the pace of the bureaucrat. At this stage it is clear that employment structures in their broadest sense need to be designed to work for the next decade and not simply in response to legacy issues that have already been disposed of.
The main provisions of the Heads of Bill are to issue directions to a university if there is concern regarding “a policy decision made by the Government or the Minister in so far it relates to the remuneration or numbers of public servants employed in that university, or a collective agreement entered into by the Government or the Minister”. There is also provision for the Minister to send in the troops in the form of an “investigator” to enquire into any of these matters, regardless of whether any cause for concern has been established. This can lead to a transfer of functions away from the universities to the Minister; or even more worryingly (since this is designed to function under the rubric of the Public Service Management Act) to the civil service bureaucracy in Marlborough Street or its agents. What is to stop a functionary deciding to engage in their own “merger mania”? Worse, what is to stop a future minister deciding to swap around bits and pieces of colleges to their own shortterm political benefit? We have a long and inglorious history of pork barrelling and local politics trumping national strategy and should be leery of giving any politician power to engage in such.
Many commentators on university education view it as essentially undergraduate focused and through a dimly recalled lens of their own experiences.Part of what drives this desire for control is the thinly disguised belief that universities are really secondary schools for young adults, that academics are lazy charlatans, that most non industry applied focused research is self-indulgent faffing about, and that the facilities lie idle most of the year. None of these accusations survive the barest scrutiny and the 2010 Comptroller and Auditor General report on Irish universities states that the sector provides good value for money under difficult conditions. That value for money is seen in the education provided to record numbers of students with reducing Exchequer funding and the growing contribution to knowledge and creativity. Perversely, these actual achievements are regularly praised by Government while at the same time, the fabric of the proposed legislation seeks to undermine them.
In this respect, the Government needs to try be more aware of the delicate balance needed to manage intellectual organizations. Universities are about human capital and knowledge creation, similar to Apple and Google. In great part their capital walks out the door every evening. Ideally, the walk (or telecommute) back the following day. Few people would think it a good idea to impose the management structures of 1920s Ford on Apple, but the Government is proposing such a course of action with its universities. The dead hand of Frederick Taylor casts a much longer shadow than one might think feasible. Knowledge organizations are different and blindly applying a civil service approach to running universities will undermine tenure (making academics more vulnerable than civil servants), change the character of academic freedom (i.e. cause academics to think twice about attacking Government policies with awkward evidence) and make Ireland more unattractive to international talent, something we need now more than ever. Machine bureaucracies, which is what universities both internally and as a sector, are but one form of organizational structure – and probably the worst suited to universities.
We only need to look across the Irish Sea to see what a command and control approach to higher education policy looks like. The Minister for Education for Wales Leighton Andrews has used his powers under the Education (Reform) Act 1988 to radically reorganize the higher education landscape with institutions being faced with stark choices of merging and/or being dissolved and face crippling financial cuts if they do not bow to the will of the Minister. That is a system without tenure, without autonomy and at the beck-and-call of parish-pump politics. It is little wonder that Wales’ higher education sector suffers from poor academic output indicators.
A win-win is needed – universities need to be freed to do their job and increase student numbers and experience success and failure – that means we need to have an adult conversation about fees. It is good that the discussion has moved from being galmost “the issue that dare not speak its name” to being front and center. Fees need to be supported either by a graduate tax or a properly functioning loan market that is totally unlike that of the US where debt and costs have been allowed to explode due to a combination of bad regulation and poor cost controls within universities. In the interim, challenge university managers to lead their institutions. Managerialism is not the solution: our ongoing experiment with the HSE should be adequate proof of that. Give them the monies that the state deems an appropriate to subsidize research and education for the common good – then let them get on with their business. If the impunity of the creators of this economic crisis not being brought to book has caused a concern about responsibility then that is perfectly fine: but making people, organizations and institutions responsible is the solution. Creating a thicket of managerial requirements will just encourage lobbying, rent seeking and the creation of a sclerotic state. Worse still, it will result in more crises and more attempts to lock the stable door after the horse has bolted. Ireland will need smart people and nimble institutions to survive the next few years. The University (Amendment) Bill stifles both.
Another day another paean to applied science… well, a thinly disguised call for more money to go to engineering. Coz, they make stuff y’know, not like basic researchers or heaven help us AHSS (arts, humanities and social sciences) dabblers. After all, what have the romans, sorry, researchers ever given society…This applied-basic dichotomy (and shouldn’t it be a tricothomy, as whatever happened to translation research?) is not just false its ignorant. And people who peddle it, whether they be retired deans of engineering schools, science funders or politicians who wouldn’t know a quern from a quark are ignorant of their ignorance. It’s a rumsfeldian ignorance in not knowing that they don’t know.
One cannot apply scientific concepts blindly. Well, one can but don’t expect anything much more than a blowup. Take finance (not even a science but hey…) for an example. One could argue that two equations helped blow up the financial system (aided and abetted by a range of human behavior stretching from outright criminality to buck ignorance via political sleevenism). See for discussions on copulas Zimmer, Lee, jones, and for the BS model Hartford, Pollack and Lo (the latter emphasizing the human-ware element)
The two are the BlackScholes (which can be abbreviated correctly to BS) equation for the valuation of options and its lesser-known cousin the Gaussian Copula. Most people have heard of the first and fewer of the latter. The GC describes how series move together, a multivariate version of a correlation function.
BS models and their derivatives underlay many derivative models while the GC model was commonly used to model the likely behavior of the elements of risk in collateralized debt and mortgage obligations. And we know how well that worked.
Here is the thing: these basic science models are old. And flawed. They are theoretical constructs, incredibly useful as theories, easy to teach to undergraduates, but ones whose n-th grandchildren are being worked on to slowly, gradually, painstakingly improve the fit of the theoretical model to the real world. The application of these towards products was I contend fatally flawed by a lack of understanding by regulators and some practitioners of how the basic science was moving.
Funding into basic science improves how we apply these. Funding into translational science (which steps between applied and basic) helps improve the feedback. Funding into applied science gives the raw material for the feedback. None is more important than the other. And for a country such as Ireland where it is both impossible to outcompete in basic science with the military-industrial complexes of the world and where there is a need for high value added jobs, this gives an unpalatable policy prescription. We need to keep funding basic research to ensure that those teaching applied and translational science are at the forefront (or at least aware of where it is). If we don’t, we end up with the production of tinkerers capable of making minor adjustments to a preset form but with little understanding of the fundamentals. Worse, we end up with state funding displacing commercial R&D via that being outsourced to the third and fourth level. R&D is high risk and so it makes perfect sense for companies to get it done outside, especially when they can then also complain that the R&D isn’t producing marketable products fast enough.
This policy isn’t sexy – it doesn’t generate lots of quick jobs and doesn’t allow politicians to open factories and ct ribbons at call centers. But then neither did the decision by Donagh O’Malley (made against the advice of the bureaucrats) to open up second level education to all. Slow burns last longer. SFI and the government science apparatchiks need to step back, take a long view and put in place structures that support a decent basic science budget, that encourages
So, I today signed off on the agreement to be the new editor of another Elsevier journal, International Review. Of Financial Analysis (IRFA). It's a pretty decent journal, ranked in the top 40 by a recent study; it was ranked as “internationally excellent” in the 2008 Aston rankings; as “highly regarded” in the 2010 Association of Business Schools journal ranking ; as “top international” in thr 2010 Cranfield School of Management list; for mere details see http://www.harzing.org with the usual caveat that rankings are not the only or even the most desirable indicator of the quality and impact of a journal.
Now, I am aware that elsevier raises the hackles of many with regard to the debate on open access versus pay walls, but that's a debate that I'd like to avoid at the present. What I am interested in is the views of people on how we might make the articles forthcoming in IRFA more accessible and interesting. elsevier have their views on the article of the future- which of these would you be interested in seeing rolled out? For example, should video abstracts be available freely viewable? Would people be interested in a twitter feed of articles? Whst about an editorial,video, of each issue? Your ideas are sought!
The Chairman of the Higher education Authority is no stranger to controversy. His most recent interesting comment came when he commented against the “restrictive work practices” of the third level, stating “There are very restrictive HR practices imposed on our higher education institutions by the fact that they are regarded as part of the public service, not much different from a government department or a local authority.” He also complained that Irish universities were not attracting enough foreign students, which seemed to be an issue caused by a lack of “Greater collaboration and alignment between institutions”
I emailed, on Saturday afternoon, the HEA and inquired for specifics on these restrictive work practices. My contract, and I think every other academic, states that I will, in effect, do what I am told to do by the head of school. My duties are not specified beyond engaging in teaching as directed, carrying out research and doing such administrative duties as are assigned. It would be hard to find a more open contract than one that says “do what, where, when, for how long as, and in what manner as your boss shall dictate. End of”. I imagine Ericcson, from whence Mr Boland hails, would be ad idem with every other company in welcoming such an open-ended specification of duties.
The HEA contacted me on Monday, with a copy of the speech (HECA J Hennessy Key Note Speech 20 April 2012 (2) (1)) and then on Wednesday kindly followed up with details of the “restrictive work practices”. I was interested to read these as I was worried that my work practices were in some way restrictive… I need not have. For the most part these are legislative, HEA driven or organizational, rather than actions carried out or not by academics.
The Higher Education Strategy calls for a comprehensive review of existing employment contracts. It looks for contracts that are transparent and deliver accountability for appropriate workload allocation models to ensure that priorities around teaching and learning, research and administration can be managed and delivered. In relation to institutes of technology, it says that contracts should specify a minimum number of hours to be delivered on an annualised basis. Currently, the contracts in institutes of technology provide the delivery of 630 hours by assistant lecturers (560 by lecturers) over 35 weeks with a norm of 18 (16) hours per week. Because of circulars restricting the length of the academic year as well as developments such as semesterisation, the 35 weeks are never delivered. Recent agreements under Croke Park have focussed on increasing the amount of delivery per week, a less optimal approach than adopting a broader concept of the academic year.
Consideration could be given to the adoption of an annualised credit-based contract based around the current 630/560 requirements. An hour of lecturing would remain equivalent to one credit under this system but credit could then be given for other academic activities such as research, supervision of PhDs, engagement with business etc. Such a flexible approach would allow Institute management to determine credits for various activities across the differing demands across teaching Levels 6-10 as well as across the differing demands in terms of research and other academic activity. Any new contract arrangements should also provide for a level of academic and other duties – administration, management, course development, promotion of the Institute, engagement with stakeholders etc. – that form part of the normal duties of a lecturer and do not attract credits. Finally, it will be important that the contracts also state clearly what is expected in terms of attendance and the entitlements of staff in relation to annual leave.
This is strange. Lets leave aside the emphasis on institutes of technology and the equating of these with the entirety of the higher education space. As I have noted, my contract doesn’t say anything about hours or whatever. It says “do your job”. The problem with overspecifing what knowledge workers will and will not do is that they are generally smart people and will easily game the system. There is a substantial body of academic and practical research on how to ensure work gets done. Universities are not machine bureaucracies, which work by the enforcement of control. They, like all adhocracies or matrix organizations, work best when coordination and control is by the adherence to professional norms. It might be best for the HEA to contemplate how they could best set these, rather than ever-incremental micromanagement. We have a first year university course that discusses these issues and I am happy to forward the notes. They are perhaps adhocracies or As we know Irish academics work approx. 50h per week on average. Over say 48 weeks (I know its shocking that public servants will take holidays…you cant get good staff these days) that amounts to 2400h per annum. CSO data suggest that the average weekly paid hours across the economy is approx. 32h per week. That’s just over 1500h. Restrictive work practices seem to have resulted in this sector providing a premium in terms of output of some 50%. But that’s not the real issue. The real problem is the equation of hours spent in the classroom with hours worked. That such arrant nonsense could come from the head of the government body charged with the management of higher education should be a cause of huge concern. Despite the many real issues in Irish higher education we still manage to have substantial impact on the world stage with several world class universities. By all means let me work 32h instead of 50 plus….
While in the sector, HEIs have considerable freedom to hire staff (subject to ECF), their capacity to make staff redundant, even where there is manifestly no work for them, does not exist. In the institutes of technology, for instance, if staff cannot be usefully deployed due to the collapse in apprenticeship, they cannot be made redundant. Any effort to improve efficiency by reducing unnecessary duplication of programmes across the HE sector will be rendered pointless unless a capacity for targeted redundancy is provided. The same goes for efficiencies that could arise due to mergers of HEIs. A capacity for targeted redundancy schemes is required.
Hire staff subject to the ECF …apart from that Mrs Lincoln, how was the play…
Again we see the IoT = all fallacy. Lets leave aside the issue of whether the government body charged with overseeing higher education might better serve society by ensuring that it works to see that apprenticeships are strengthened (Germany anyone?) rather than destroying the seed corn of future such. Today apprenticeships, tomorrow…? What market demand is there for Latin, or poetry, or for philosophy or for sociology? The higher education sector is not and cannot be simply a tool for the creation of what the HEA or industry think might be employable in three or five years time. Since at least Newman we have known this. There is an ongoing and lively debate on how to recast this ideal but that universities play more than just a training role is surely something that the HEA might acknowledge. There is also a strange sense of competition being bad. I always thought competition, for students and ideas no less than for bread rolls, ensured that the customer or person to whom the service was provided got a better outcome. The locgical conclusion of the drive to reduce choice is silod universities, where for example UCD teaches economics and say TCD philosophy while Maynooth does Sociology. The concept of students and researchers crossing what are at best arbitrary intellectual boundaries seems anathema to the HEA. It reflects a desire for monopoly provision of education – economics 101 tells us that monopolies are always inefficient, even if they are natural monopolies, which is not at all obvious for the provision of educational programs.
Particular problems are created by the way in which Ireland has transposed EU employment Directives. Under current legislation part-time employees or those on temporary contracts can too easily acquire rights akin to permanent staff, including contracts of indefinite duration (CID). This is particularly dangerous in a situation where HEIs are forced to rely on part time and short term contract staff. It is accepted that the HEIs have a responsibility here to ensure that contractual terms are appropriate, but in the IoT sector there is a view that they are precluded from issuing the kind of contract that would avoid a CID situation, since the form of contracts has to be agreed with unions who in turn agree these with the Department of Education and Skills. A review of the inflexibilities generated by employment legislation, followed by legislative amendment, is urgently needed.
Again the equation of IoT’s with the entirety of higher education…..While this may well be the case the use of the phrase “too easily acquire rights” is unfortunate to say the least. This seems to be a drive towards casualization and a backdoor abolition of not just tenure but permanency. I guess in the brave new world the HEA sees the provision of higher education as a purely market driven force, where they determine the course to be offered and organizations bid to provide same with staff hired only as and when needed. Perhaps we could organize hiring fairs or maybe the old concept of An Spailpín Fánach can be reinvigorated where gangs of underemployed Python coders and French romantic poetry specialists can hang around outside universities waving their credentials? There are of course situations where contracts are a good idea. But to create a university system where this is the norm is self defeating. Like it or not we are in a globalized market and the market for academic talent is no different. We are now in a situation where even if a post is created it is probably going to be offered at the lowest point of the scale, which is generally now below that of comparable scales in other countries. Combine this with a total lack of job security and we will find it impossible to compete, which is in the end going to result in a poorer society in every way.
At present pay is set by government and, except in the case of the Departures Framework for universities, all HEIs must comply with pay terms nationally negotiated. Currently, the Department of Finance, through the Department Education and Skills, plays a direct role in the establishment of salary scales, terms and conditions, appointment points on the scales, numbers of staff etc. In the past, when time has allowed, it has been usual that negotiations have four players viz DoES, DoF, unions and ‘the employers’. At the best of times these arrangements have been unsatisfactory in that the negotiations have been centralised and agreements are centralised, consequently much time, particularly in the IoT sector, has been spent fighting cases at local level. In recent times, as a direct result of the economic crisis agreements have been entered into without understanding the impact that these agreements have on the functioning education (see further below).
While the HEIs do not seek complete freedom in this matter, flexibility is required to enable them to manage their workforce and their performance more effectively. HE needs a much more sophisticated architecture that is linked to both the strategic needs of institutions and their evolving structures. That architecture has to have greater flexibility and with that a series of checks and balances to underpin the flexibility. An approach which involved freedom to pay staff within bands combined with a requirement of balance between grades (as in the current ECF) would meet many of the difficulties here.
Again the IoT seems to be driving the debate. It might be useful if the HEA clarified that they are even aware that there are two higher education systems and that no more than one size fits all the same issues do not nescessarily arise in both. The issue if there is one with Irish university pay is that it has a high mean but a low variance. It is good to see that the HEA are beginning to suggest that this be addressed. But it is limited – why not allow managers in universities to manage? Why not let them determine, within the resources available, the pay of people. There is a market for academic labor and this should be used to signal the wages. I would much rather we paid the most productive more than the least.
General – Management Capacity to Manage New Contractual Arrangements
It is generally agreed that managing change in the Irish public sector is challenging. If, as proposed above, new contractual arrangements are entered into then there will be significant challenges to middle managers in Irish HEI’s to manage those changes. In order to do this successfully will require a much strengthened approach to PMDS, the recruitment and appointment of heads of department, deans, etc who have both academic and managerial competence. While some institutions have developed or are developing robust systems of appointment and leadership and development to ensure management competence, anecdotally the HE system seems only patchily prepared for these changes.
This is hard to argue with in one way, stating that managers should be competent to manage. But they must also be free to manage. At present there is a widespread perception that the HEA are micro managerial zealots, desirous of interference at the lowest operational levels rather than confining themselves to policy. This may be unfair but it does exist. There is nothing wrong in principle with professional managers in universities but again there is absent from this statement an acknowledgement that knowledge workers in public or private sectors require a different style of management to other workers. Such is neither good nor bad but a fact of organizational life. There is a reason that Facebook, Google etc provide beer, Ping-Pong tables and so on and its not because the flinty eyed billionaires that run them are necessarily inherently nice people, although they may well be. Its because that approach works in that organizational space.
This is an expanded and linked version of the column “My Education Week” which appears each Tuesday in the Irish Times.
This week is Trinity Week, culminating in the Trinity Ball, which means teaching semester is over. Which, if one believes everything one reads in the papers means that I and every other third level academic is off work until the autumn…would that this were so, but it remains a pleasant fantasy. No scheduled teaching means one can catch up further on the Sisyphean tasks of administration, research and student management! The perception of lazy academics is one that is all too common, but recent research suggests an average working week of 50h, above that of the european norm. Its a sad commentary on irish public discourse when research, carried out by a highly prolific academic in her area, is dismissed and all but called academic fraud by commentators simply because it doesnt conform to expectations. That coarsening of debate is something about which as academics we should be most concerned.
Sunday evening is generally when both I and Mrs Prof, a primary school teacher, organize our work week. She plans the weeks lessons, I outline my ‘to do’ lists and deal with any weekend issues. As a college tutor in TCD one finds oneself dealing with all sorts of odd requests above and beyond the norm. This Sunday the fire to be fought is a student who has that weekend been given a chance to go on an internship in Singapore, very relevant to her degree, but this would entail missing examinations and a decision is needed fast. I email her, she rings me, we talk and plot out a route to be tried on Monday morning.
Monday morning I stop off in Kildare FM en route to work, and talk for half hour on both my new book “what if Ireland defaults” and on general economic issues. Local radio is a powerful force in Ireland, and too often ignored by commentators. Part of the job of all professors is to profess and what better way than to discuss ones works with the public who after all pay a large chunk of my salary! The remainder of the morning is taken up with finalising my thoughts on paper for my appearance on Wednesday at the Oireachtas Subcommittee on European Affairs, regarding the Fiscal Compact. Monday is Trinity Monday and as always there’s a great buzz in Front square when the names of new scholars and fellows are announced. Its hard to think that its nearly 10 years since I was made fellow. Time flies when your having fun! This year there are 103 scholars, a record, reflecting the exceptional quality of students we are privileged to have. The afternoon is taken up with finalising and submitting a paper, a meta analysis of research on the linkage between property values and aggregate stock/bond market returns, to a US journal. Submission costs €125 and I decide to pay that myself rather than dip into my research funds (where I divert my media earnings) which I use for travel for myself and for postgraduates and for things like launching books….
Tuesday The MSc in Finance in TCD is unique Ireland in its range of professional partnerships, with linkages established with Bloomberg, PRMIA, CFA and CIMA (the signing ceremony of which is shown here). I set aside time to talk to MSc Finance students, but some exam issues mean that a number cant make it. We talk anyhow to those that can make it and reschedule the rest. These are students who are to be under my supervisory wing throughout the summer as they undertake their dissertation which accounts for 1/3 of their degree. I have 10 to manage but am also the general ‘go to’ person in the supervisory group for issues around data and statistical analyses beyond the norm so I usually get to see most of the 50 plus students at some stage. The students will work on these projects for the summer and hand up the work in late august. Some projects are industry linked, others are pure research, others expanding on previous work. Of the ten students I am supervising 3 are Irish. The projects range from analyses of option pricing, through dividend policies, to work on the determinants of personal financial risk taking. Its hugely challenging and enormously rewarding each summer to work with the masters students on their projects. We get an update from the head of school on the fundraising for the new Business School Building (going surprisingly well given the times that are in it) and news that a new colleague has accepted (at lecturer level) the position in strategic management which was created when Professor John Murray died, 18 months ago. The norm now in irish academia is that no matter how senior, experienced and internationally well qualified and recognized is a person, if they depart and are replaced at all that will be at the lower end of the scale. It takes time, and experience to mature as an academic as for any post. We are eroding academia from the top down. I talk to a Finnish newspaper on the Irish banking collapse, and they keep asking the same question as all overseas commentators do : why on earth did we do the bank guarantee. I have no printable answer…
Wednesday the Dean of Students Honor Roll is announced, recognizing students for non-academic involvement in college life, such as volunteering and tutoring/mentoring second level students in the inner city. Of the 400 honoured 38 are business students. College is of course much more than simply classes and the creation of rounded socially aware business graduates cannot be but a good thing for the future. The morning is taken up with attendance at the Oireachtas Subcommittee, in the company of several others, namely Jimmy Kelly and Michael Taft of UNITE and Megan Greene. Presentations are here (me, Greene, Kelly, Taft, and here is a link to the transcript of the debate). While one might decry the antics of the Oireachtas at times, it is our sovereign parliament and it both is and should be an honour to be asked to present ones views to it for consideration. I certainly take that perspective. We present our views on the fiscal compact; I concentrate on the effect of same on the financial markets, while the others concentrate on the macroeconomics. We have a good round of questioning.
Afterwards I have lunch with Megan, who is senior economist with Roubini Global Economics, who also attended the committee. Over lunch we have a lively exchange with some parliamentary researchers about the future of the Euro. In the afternoon i catch up on some emails about the UK and Ireland Chapter of the Academy of International Business , on whose executive i sit, and attend to my role as Editor of a journal (Research in International Business and Finance) I divert a query from a Sunday newspaper to someone who knows more about it than me. and get pleasant news with a paper accepted to a reasonably decent US based journal, subject to some minor (mainly editorial) changes.
Thursday involves sorting out the sessions for a large conference I run every year, with over 150 papers in all areas of finance. As usual in excess of 95% of the papers are from overseas, and we expect about 200 delegates. Having run this for 10 years in Ireland, it’s probable that the conference will go overseas from 2013, as the lack of sponsorship from domestic financial institutions makes running it here increasingly difficult. Despite having attracted Nobel laureates, having attained significant international credibility, being linked with one of the top international journals in finance and having had present each year the leading finance researchers there is worryingly little commercial interest in pure knowledge. This is in stark contrast to France and Italy where the conference is bound for the next decade and where financial institutions are more than willing to interact from the very start with academia I also catch up with some PhD students, and we discuss how they will overcome some issues, publicise the research and discuss how to interact with an overseas financial institution which is funding one study. I talk to a Norwegian academic who is researching the Irish banking crisis, and try not to be embarrassed when they note that not only did they not get anywhere in getting an interview with official sources they didn’t even get a reply. We have a long way to go yet before we realise that sunlight is the best disinfectant. We seem to have not only zombie banks but vampire-like openness in the permanent government.Later in the afternoon I meet with the people from Orpen press, and we discuss a series of talks to be held in bookshops to push the debate which we have opened with the book “what if Ireland default”
Friday I spend working from home, as I try to do each week for at least a day. Knowledge work requires a brain and a pc. The physical location is of minor relevance, and research requires for me at least uninterrupted time to think and muse. While the work of science academics typically requires them to be at their benches etc to do experiments, for arts, humanities and social science research this is not the case. There is a recent push towards trying to tie academics to their desks : this not only flies in the face of government policies on teleworking it is wholly misguided. So, the attic it is, where I work to finish a paper on small firm finance I am doing with a colleague in DCU and another collaborative project on gold prices which involves researchers in the USA and Australia. While none of these will generate patents they should I hope advance human knowledge a little bit.
What Im listening to : I generally stream baroque or early church choral music when im doing writing or research, and for walking/commuting 1970’s and 80’s rock such as Led Zeppelin, Lizzy, Guns n Roses….
What Im reading : In the Shadow of the Sword by Tom Holland and Blue Remembered Earth by Alastair Reynolds.