Statistical methods support central banks in decision-making

According to Professor Jani Luoto, econometric methods are primarily used to analyse economic datasets, but they are also suited to modelling climate change.

What are your research topics?

I develop statistical methods, known as econometric methods in the field of economics, mainly used for modelling macroeconomic variables, such as inflation and gross domestic product.

These methods are utilised in assessing causalities and predicting economic trends.

Where and how does the topic of your research have an impact?

Central banks and government ministries, among others, support their decision-making with methods developed by me. The better such institutions are capable of understanding the functioning of the economy, the better prepared they are to make decisions. Therefore, my research has at least a marginal impact on all of us.

What is particularly inspiring in your field right now?

At the moment, I’m particularly inspired by the fact that econometric methods have been increasingly adopted by climate change research. That also opens up new application opportunities for my research.

Jani Luoto is the professor of applied econometrics at the Faculty of Social Sciences.

Watch Jani Luoto's inaugural lecture as a new professor on 28.5.2021 on YouTube.

Read about the other newly appointed professors here.