Wednesday, 4 January 2017

Why No Research Chair in Economics at Northern Ontario’s Universities?


Northern Ontario’s universities are proud of their research intensiveness and success. Indeed, over the last decade they have made an impressive effort to acquire the flagships of research intensity – the academic research chair.  Research chairs highlight and foster a specific area of research importance by dedicating specific resources to support the chair holder’s research.  Along with budgets for research, these chairs allow a professor to concentrate on research by reducing their teaching load.

Many of the research chairs currently at northern Ontario three largest universities - Laurentian, Lakehead, and Nipissing are funded by the federal government via the Canada Research Chairs program.  There are also other chairs that have been funded with partnerships with other agencies and funding groups as well as internal university resources.  As noted in a previous post there appear to be 17 such positions currently held at Laurentian University, 16 at Lakehead University, 4 at Nipissing and one at Algoma.   Moreover, these research chairs cover a wide range of topics stretching from applied evolutionary ecology to indigenous health and aerial robotics.

However, there is a curious omission when it comes to these many important topics – anything specifically to do with economics.  Indeed, three important economic sub-fields given northern Ontario’s economy are nowhere in sight: regional economics, transportation economics and natural resource economics.  Such an oversight is troubling especially given the constant use by universities of the words “economic development” or “economic impact” as background context whenever major research projects or research chairs are announced.
 
Perhaps the average university administrator believes that economic analysis is too important a subject to be left solely to economists and should be shared across disciplines.  Sharing and interdisciplinary work is important in 21st century academic research but so should be respecting the need for disciplinary boundaries and expertise.  While sociologists, social workers, engineers and political scientists all may have some insights as to how the economy functions, no one does economic analysis like economists.  Economic analysis done by economists ultimately makes use of economic theory and mobilizes empirical evidence in a sophisticated framework to provide understanding.  Key to this analysis is the importance of incentives and the market mechanism in driving individual and group behavior.

Economic development and the state of the regional economy in northern Ontario is a constant topic of public discussion and a challenge to regional leaders.   The state of the regional economy is a constant lament when delegations of municipal leaders trot off to Toronto to make presentations or have their meetings.  With such a hunger for developing the regional economy one would expect more evidence-based effort to understand the regional economy on the part of the region’s universities from the perspective of economic theory and analysis.  And yet, not even one research chair in economics at a northern Ontario university.

Its not that the federal government via the Canada Research Chairs Program does not fund chairs in economics.  Indeed, a visit to the Canada Research Chairs web site and a hunt through their database yields 23 such research chairs in the discipline of economics. Another 22 are held in management, business and administrative studies – if one wants a broader definition of  “economic “ study.  Interestingly, there are no business or finance research chairs at northern Ontario universities either.

Given that there are approximately 1800 Canada Research Chairs, this means about 2.5 percent of Canada Research Chairs are held in economics or business schools.  In the case of northern Ontario, 2.5 percent of 38 should work out to about 1 research chair. Given the importance of the economy to a region has seen slow growth for nearly half a century, one might make the case for more than one chair.  Yet there is not even one.

Why?  That is a good question. I don’t have an answer but let me hypothesize.  One reason is probably the theoretical nature of economic analysis.  The bulk of these northern Ontario research chairs have an applied nature that ultimately sees economic impact as a byproduct rather than something worthy of study in its own right.   That probably also explains why when times were good in the transportation or forest sectors, companies in the region never put together the funding for a chair in resource or transportation economics.  The traditional resource extraction mentality that is ingrained in the northern Ontario psyche focuses on the short term applied benefits rather than the analytical long-term implications.   If there is not an immediate short-term practical payoff, attention spans in the north drop off quickly.

Another reason may be the discomfort universities have with economists given that economists emphasize market-driven solutions while universities are generally places more comfortable with non-market perspectives.  This ideological comfort zone extends outside the academy as northern Ontario universities operate in a regional environment where government plays a large role politically and economically.  As an added point about university politics, while economists emphasize market driven solutions they also are often poor salesmen when it comes to articulating their point of view in the political committee process that often drives decisions on things like research chair fields.

Finally, another reason may be that much economic analysis by economists in northern Ontario is already being done via consulting contracts for public agencies and government ministries.  Moreover, substantial economic analysis and commentary has also been provided for free as a public good by economists such as myself, and more notably David Robinson at Laurentian via op-eds and blog contributions.  Why sink long-term money into research when you can get it via either a short-term contract or for free?

Yet, relying on short-term contract research for economic insight does not allow the freedom to pursue bigger picture research issues when it comes to the northern Ontario’s economy’s needs.  Free economic analysis will eventually end as a generation of more community minded economists retires. 

Northern Ontario universities should put their ideological preferences and comfort zones aside and embrace the academic diversity they should be reflecting by welcoming more points of view.   It is time for renewal and investment in long-term economic research capacity via research chairs in economics dedicated to fields of direct benefit to northern Ontario’s economy: regional, natural resource and transportation economics.  If there is any better idea as to what kind of research chairs in economics are needed in the north, let us hear them.

Finally, the cynical reader out there might surmise that this post is merely self-interested advocacy.  I can assure you that I have no interest in a research chair in northern Ontario dealing with regional, transport or natural resource economics.  My case for a northern Ontario research chair in economics is a case for investment in the future.   The future is best served by adding fresh new economists and their research to the academic infrastructure in northern Ontario.