New facility allows researchers to study economic behaviour

Pro-Vice-Chancellor (Business and Economics) Professor Nigel Healey, Dr Maroš Servátka, Dr Steven Tucker and Vice-Chancellor Dr Rod Carr.

The University of Canterbury has officially launched a state-of-the-art experimental economics research facility.

The New Zealand Experimental Economics Laboratory (NZEEL), located in the College of Business and Economics, is anticipated to become one of the leading experimental economics research hubs in Australasia.

The NZEEL is a purpose-built state-of-the-art facility with 36 fully partitioned work stations and a separate experiment control room.

Experimental economics is an innovative and relatively new branch of economics that uses experimental methods to study economic phenomena. It uses controlled experiments, normally within a laboratory setting, to study economic behaviour.

NZEEL Director Dr Steven Tucker (Economics and Finance) said the UC-based facility was the first of its kind in New Zealand.
“It provides the infrastructure to allow UC to continue to grow from a regional leader to an internationally renowned institution for experimental economic research,” he said.

Dr Maroš Servátka, member of the UC Experimental Economics Research Group, said the NZEEL is affiliated with top researchers and other experimental research laboratories around the world and has already attracted and hosted many top researchers, including current and past presidents of the Economic Science Association and one of the “founding fathers” of experimental economics, Professor Charles Plott.

Dr Tucker said the NZEEL was currently establishing research synergies with government and private industry to address policy questions of regional and international importance such as water market allocation mechanisms, institutions to mitigate/ eliminate asset market bubbles, and institutions to minimise insurance fraud.

“Experimental economics allows us to test theories, search for facts in a controlled environment, compare economic institutions, provide policy advice and serve as a test bed for policy proposals, as well as help with their fine tuning. And, although experimental economics is geared towards research, it is also an excellent teaching tool.”

Dr Tucker said the facilities were available for use by UC staff, visiting researchers and graduate students.
For further information about the NZEEL go to www.nzeel.canterbury.ac.nz/index.shtml.

Source: Communications & Development, University of Canterbury (2010, Nov 26) New facility allows researchers to study economic behaviour. Chronicle, Vol. 45, No. 18, p. 6