Jaarverslag 2008

Erasmus School of EconomicsAnnual report 2008

Visiting address

Erasmus School of Economics

Erasmus University Rotterdam

Burgemeester Oudlaan 50

3062 PA Rotterdam

The Netherlands

Postal address

Erasmus School of Economics

Erasmus University Rotterdam

P.O. Box 1738

3000 DR Rotterdam

The Netherlands

Telephone & Fax

Phone: +31 10 408 1377/1370

Fax: +31 10 408 9145

Internet & E-mail

Internet: www.ese.eur.nl

E-mail: [email protected]

A n n u a l R e p o r t 2 0 0 8

E r a s m u s S c h o o l o f E c o n o m i c sE r a s m u s U n i v e r s i t y R o t t e rd a m

The ESE is the natural choice:• for everyone to study economics in a broad sense,• for academics to make progress in relevant and challenging research,• for alumni to meet and greet,• for government and firms to seek reliable advice.The ESE enjoys great acclaim in the Netherlands and abroad for its fundamental and appliedscientificresearch. Its two graduate schools, the Erasmus Research School of Management (ERIM) and theTinbergen Institute (TI) are among the very best research institutes and graduate schools in theworld.The Erasmus School of Economics has a clear strategic focus on economics. It is the only school inthe Netherlands which explicitly educates economics and business. All faculty members areinvolved in both research and teaching. This allows the ESE to thrive. Just as they were 100 yearsago, the economists are the pounding heart of Erasmus University Rotterdam.

A N N U A L R E P O RT 2 0 0 8

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C o n t e n t s

1. Preface 5

2. Facts and Figures 2008 7

3. Mission, strategy and organisation 93.1 Mission statement of ESE: focus on

economic issues 93.2 Strategy of the ESE:

to be the number 1 brand 93.3 ESE organisation: lean and mean 13

4. Research 154.1 Introduction 154.2 ESB indexes 154.3 Increase of quality and quantity of

ESE publications 164.4 Research accreditation in progress 174.5 Team for funding opportunities 174.6 Internal grants and awards 184.7 External grants and awards 194.8 Other memorable activities 214.9 PhD-theses results and new PhD students 21

5. Achievements in 2008 235.1 Department of Economics 235.2 Department of Business Economics 255.3 Department of Econometrics 285.4 Department of Applied Economics 315.5 Erasmus Research Institute of Management 335.6 Tinbergen Institute 34

6. Education 356.1 Education management and programmes 356.2 Highlights in 2008 366.3 Bachelor programmes 376.4 Master programmes 386.5 Degrees granted in 2008 416.6 Ideas and complaints mailbox 426.7 ESE Complaints Committee 426.8 Education evaluations 436.9 Advice to Leave 45

7. Student Associations 477.1 EFR 477.2 AEclipse Student association 487.3 EUREOS 487.4 Econometric Student Association Rotterdam 497.5 Financial Study Association Rotterdam 497.6 Student Marketing Association EUR 507.7 R.F.V. Christiaanse-Taxateur 507.8. In Duplo 51

8. Staff 538.1 Development in number

of employees 2005-2008 538.2 Newcomers 558.3 Promotions & Training 578.4 Termination of contracts 578.5 Diversity 588.6 Internationalisation 588.7 Age structure 598.8 Performance appraisal and bonuses 608.9 Occupational health and safety 608.10 HR Services ESE-EUR 61

9. Financial Annual Report 639.1 Introduction 639.2 Profit & Loss Statement 2008 639.3 Balance sheet as at 31 December 2008 649.4 Notes to the balance sheet and the profit

and loss statement 649.5 Off-balance sheet obligations 679.6 Affiliated private limited companies 68

10. Management and organisation of theESE Overview 69

10.1 Management Team 6910.2 Administration office ESE 6910.3 Management of ESE Departments 7010.4 Management of Research Schools 7010.5 Education Management 7010.6 Advisory Boards and Committees 71


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1 . P re f a c e

In 2008 the Erasmus School of Economics (hereinafter referred to as ‘the ESE’) has been in the news inmany positive ways. For the third year in a row, our economic research has been assessed as the best bythe Dutch ESB rankings of research output and citations (personal and School wise). It is also noteworthyto see that the number of academics from the ESE who have made it into the top 20 has doubled sincelast year. Furthermore we can proudly announce that in 2008 we acquired 40% of the NetherlandsOrganisation for Scientific Research (NWO) funds for pursuing doctoral research within MaGW. Researchoutput at the ESE did not only increase in relative terms, but the ESE is also doing well in absolute terms.In 2008 we prepared the self assessment for our research achievements in the years 2001-2007. It turnedout that the number of publications in top core journals has quadrupled during this period. Theimpressive position enjoyed by the ESE is a result of a strategic revision of the research policy at theSchool that started in 2005. We reduced the number of programmes andimplemented a tenure track system. Furthermore we took the recommendation to improve the impact ofthe research conducted at the two institutes very serious: on the one hand of the re-accreditationcommittee of the Tinbergen Institute and on the other hand, the midterms review committee of theErasmus Research Institute of Management (ERIM).The Erasmus School of Economics has gained the right, in very exceptional cases, to confer thedesignation ‘Desiderius Erasmus Distinguished Chair of Economics’ on leading scientists from its ranks.This designation is connected to an existing chair and is awarded for a period of seven years. In 2008 twoof our professors were awarded the Chair, i.e. Professor Stefan Stremersch, Professor of Marketing andProfessor Philip Hans Franses, Professor of Applied Econometrics and Marketing Research.In 2008 the ESE welcomed Professor Eric Maskin, Nobel Prize Winner in Economic Science 2007 for hiswork on mechanism design theory. He gave a seminar at our School, entitled 'Evolution and Repeated

Games' and attended the opening of the EFR Business Week. In relation to his appointment on the HenriTheil Chair (rotating Chair at the ESE) another Nobel Prize Winner in Economic Science (2003), ProfessorClive Granger, visited our School for the second year in a row.As the credit crunch started to make its way all over the world, our specialists in the area of finance havesucceeded in showing the public at large that the ESE provides excellent policy advice and gives opinionsabout what is happening around the globe. More or less at the same time as the credit crisis was in thenews, the Duisenberg School of Finance opened its doors in September 2008. The School offers threeprogrammes, two of which the ESE participates in: the MSc in Risk Management and the MPhilProgramme in Finance. The programmes draw on the Erasmus University Rotterdam, VU UniversityAmsterdam, and the University of Amsterdam's leading Schools in Finance, Econometrics, andMathematics, and their extensive international network all managed by Duisenberg School of Finance.The MSc in Risk Management is quite unique, as no School or programme focuses on risk managementexclusively at this high academic level. The quality of the programme is firmly anchored by the directpossibility of pursuing a PhD in Finance after graduation, thereby guaranteeing the programme'sacademic content. Duisenberg School of Finance sponsors the Tinbergen Institute to offer a new MPhilprogram that is fully dedicated to research in Finance. The MPhil in Finance will initially be a variant ofTinbergen Institute’s MPhil in Economics that leads to an NVAO accredited degree. It shares its structure,institutions and regulations, but has a core and a choice of fields tailored to research in finance.There were other nice events that we can cherish together. As a result of our concerted effort forexample, we were able to implement the bimestrial system without any mentionable problems. Asidefrom renewing its educational methodology, the School has also invested in new strategies related tomarketing and student enrolment. These efforts have led to a total intake increase of bachelor studentsby 13% in comparison to the 2007-2008 academic year. A noticeable increase took place at theEconometrics & Management Science and Economics & Business bachelor programmes. In particular therewas an increase for the highly valued English stream programme, the International Bachelor of Economicsand Business Economics (IBEB). In addition, student enrolment for the MSc programmes at the ESE alsoincreased in comparison to the previous academic year. The intake of foreign students increasedtremendously (by 69%!) as compared to our ‘own’ intake of bachelor and pre-master programmestudents.For the first time a Graduation Day for bachelor degree graduates was organised. This was an initiativethat was very much appreciated by both students and their parents. It took place in November 2008.On Saturday April 19, 2008 the Woudestein campus was the stage for the first ESE alumni day. This day,


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prepared by the School and all of its student associations, was structured around the topic “TheNetherlands to the top?”. A perfect mix of social activities and substantive discussions turned this day intoa success. In November 2008 the first EUR alumni day was held. Again, many of our alumni participated inthis day. The efforts of the EUR, ESE, EFR and student associations in the past year already generated a lotof interest from our alumni for the activities of their alma mater and are a stepping stone for interestingevents in 2009.Furthermore, we set up the first sponsored honours class with the help of an external sponsor(PricewaterhouseCoopers). This Honours Class in Accounting, Auditing & Control provides selectedstudents with a competitive edge to their résumé. The class is characterised by a unique combination oftheory and practice in accounting, auditing and control. A strong basis in finance is added as an extrafeature to further enhance students’ career opportunities. The programme includes significant interactionwith the business community through guest speakers, projects with practitioners, business games, drinks,and internship opportunities.Without doubt the hosting by the EUR of the 31st annual congress of the European AccountingAssociation (EAA) in April 2008 was very successful. This conference was jointly organised by theRotterdam School of Management (Accounting & Control section) and the Erasmus School of Economics(Erasmus School of Accounting & Assurance). The EAA Annual Congress is one of the largest accountingcongresses in the world. Every year it attracts more than 1000 visitors, not only from Europe but also fromthe United States and Australia. Visitors to the EAA annual congress are mainly academics, but alsopeople from the professional world of accounting who are interested in research and in the most recentdevelopments. Students from the hosting Schools have also attended the EAA congress.Last but not least, the ESE signed a covenant for Erasmus 2013 (the EUR’s strategic programme) with theExecutive Board of the EUR. This covenant records the ways in which the ESE will contribute during thenext five years to achieving the strategic goals of the EUR in the fields of research, organisation,education, programmes and environment. The signing of the covenants has made it quite clear thatErasmus 2013 is the joint responsibility of all the Schools together with the Executive Board.


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2 . F a c t s a n d F i g u re s 2 0 0 8

E D U C AT I O N ( TA U G H T I N E N G L I S H , U N L E S S M E N T I O N E D O T H E RW I S E )

4 Bachelor’s degree programmes (BSc) BSc Economics & Business Economics (Dutch stream

and English stream, IBEB)

BSc Econometrics & Management Science (in Dutch)

BSc Economics & Taxation (in Dutch)BSc Economics & Informatics (in Dutch)

4 Master’s degree programmes (MSc) MSc Economics & Business

MSc Econometrics & Management Science

MSc Economics & Taxation (in Dutch)

MSc Economics & Informatics

2 Research Masters (MSc) MSc/MPhil in EconomicsMSc/MPhil in Business Research

17 Post experience programmes (Names of Dutch programmes are not translated in English)

Erasmus Masterclass Ondernemen (in Dutch)

Executive Master of Finance and Control (in Dutch)

Executive Master of IT-Auditing (in Dutch)

Management of the European Metropolitan Region (MEMR)

Maritime Economics & Logistics

Master City Developer (MCD) (in Dutch)

Mastercourse Financial Planning (in Dutch)

Mastercourse Vastgoed Fiscaal (in Dutch)

Master in Internal/Operational Auditing (in Dutch)

Master in Public Controlling (in Dutch)

Master in Urban Management and Development

Master of Management Control (in Dutch)

Postdoctorale Leergang Europese Fiscale Studies (in Dutch)

Postinitiële Opleiding Accountancy (in Dutch)

Sales & Account Leadership (in Dutch)

Sales Practice Perfection (in Dutch)

Strategisch Account Management (in Dutch)

S T U D E N T S 2 0 0 8 / 0 9 2 0 0 7 / 0 8 2 0 0 6 / 0 7

Registered Students 4258 4573 4397

Exchange Students 147 118 121

Partner universities for exchange students 70 71 68


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R E S E A R C H

2 Research Schools Tinbergen Institute (TI)Erasmus Research Institute of Management (ERIM)

6 Research Programmes Applied Economics

Econometrics

Finance & Accounting and International Markets

Management Science

MarketingMarkets, Organisations and Government

Faculty members who are fellows/ 2008 2007 2006 Target %members of TI and/or ERIM 61.21 63.4 61 80

Number of PhD-theses 2008 2007 2006 200526 24 22 24

S TA F F

ESE Staff (31/12) 2008 2007 2006 2005

Number 361 371 322 314Fte 258.7 258.4 242.3 230.6

F I N A N C E S

Finances (in k€2) 2008 2007 2006 2005

Total income 27,249 24,837 23,009 24,733

Result 1,683 1,557 359 241

Table 1: Key Figures 2008

1 The lower percentage compared to 2008 is due to the fact that newly employed faculty in 2008 is now in the rocess of applyingfor membership for TI/ERIM

2 k€ means: one thousand euro


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3 . M i s s i o n , s t r a t e g y a n d o r g a n i s a t i o n

3.1 Mission statement of the ESE: focus on economic issuesThe Erasmus University Rotterdam educational and research activities are concentrated in the fields ofEconomics & Management, Medicine & Health, and Law, Culture & Society. The ESE is one of the threelargest Schools within the Erasmus University Rotterdam.The history of the ESE dates back to 1913 when the ‘Nederlandse Handelshoogeschool’ was established byseveral entrepreneurial Rotterdam businessmen with the aim to bring economics and business to a higherlevel using scientific methods. In 1939 the School changed names and became known as the ‘NederlandseEconomische Hogeschool’ (Netherlands School of Economics). The name change did not mean a change inthe practice orientated way of teaching. Education and research remained its primary focus. By 1973 theNetherlands School of Economics became Erasmus University Rotterdam, comprising the Hoboken medicalcampus and the Woudestein social campus. Even in those days its aim was the establishment of a vigorousand flourishing university with a – nowadays – prominent Erasmus School of Economics, incorporating awide range of economic expertise as well as keeping strong ties with the regional and internationalmarkets.

The mission statement of the ESE is as follows:

The Erasmus School of Economics is an internationally renowned institute that contributes

scientific knowledge to future economic issues and aims to answer currently relevant issues of

concern to government and firms. The focus of the ESE is on the creation, the dissemination and

the application of scientific knowledge, all from an economic perspective. The ESE relies on the

most recent insights in the discipline. It collaborates with international scientific partners, and it

has local footings in business issues relevant to the unique position that the city of Rotterdam has

as a hub of transport and industry. The ESE ensures working conditions that permit innovative

scientific progress and puts the academic education at the centre of its activities.

Because of its exclusive choice for economic perspective, the ESE distinguishes itself from its sister facultieswithin other Dutch universities, where a combination of Economics and Business Management oftenprevails.

3.2 Strategy of the ESE: to be the number 1 brandIn 2008 the dean wrote the document ‘A Course made Good’. This document contains the main ideas ofhow the Erasmus School of Economics shall pursue its course in 2009-2014 in order to attain the goalsalready set in ‘Winnen door Kiezen’, the strategic document compiled in 2004. That document alreadycontains the main targets and goals, and at present there is no need to redesign these. As the target isclear, the main issue here is to set out the guidelines by which our School can attain these defined goals.Since the destination is known, it is now time to set course to that harbour. Hence the theme of thisdocument “A course made good”, which is defined by the boat's actual course, taking into considerationall factors, including the speedometer reading, compass, current, waves, and so on. There is no need for anew strategy. In fact it is now time to get there, there where we want to be. The mission statement asacknowledged in the previous paragraph is translated in this manuscript into the following components:1. the ESE enforces a common set of norms and values and values leadership;2. the ESE has a sound financial basis;3. the ESE has a clear economic focus and confines itself to a few scientific areas;4. the teaching programmes of the ESE show excellent results from 2007/2008 onwards;5. the research programmes of the ESE are among the top national and international programmes;6. activities concerning research and contract funding are part of the ESE’s core activities;7. each academic member of ESE combines academic research with teaching;8. The administrative organisation of the ESE is effective and efficient.


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The vision that underlies everything in “A Course made Good” is that the Erasmus School of Economics isthe natural choice (where else?) for anyone who wishes to study economics in a broad sense, foracademics who want to progress in relevant and challenging research, for alumni to meet each other, andfor government and firms to seek reliable advice. In brief, the ESE is the main brand. Note that the ESEdoes not believe in slogans such as “We are the number 1 in research or in education”, as those measuresare very much time-dependent and sensitive to measurement error.

The ESE believes that economics relates to the quality of life, not necessarily limited to human life. It seeksto answer questions that are enticed by the fact that we all live on the same planet, that there are limitedresources, that there are institutions and agreements, that there are ways to make our lives comfortable,that we have to take care of others and not just ourselves, and that there are incentives needed to makeus all do this. This means that economics is not about making money the fastest way, as that could justmean destroying valuable items.

Think of the joke about the guy with two Chinese vases who enters an antique shop and asks the

shopkeeper: “What value do these vases have?” The shopkeeper answers that if there would be

only one such vase, well, then that last and single vase would be unique and worth a lot of money.

In a reflex, the guy then drops one of the vases.

Economics is a discipline that deals with the key aspects of life and these seem to be (i) the humanenvironment, (ii) health, (iii) creativity (iv) risk, and (v) responsibility, where these aspects are not listed inorder of relevance. Of course, the key drivers for people to act as an economist are usually scarcity orincentives, but these, like businesses and governments, are only instrumental to the five key aspects.These five aspects are all dealt with (each issue to a more or lesser extent) in the current researchprograms of the ESE which are governed by the ERIM and TI graduate schools. For example, accountingdeals with responsibility and risk, while urban management deals with health and environment, at leastat the ESE. So, the five aspects do not create new research programmes, they just outline what we at ESEfeel that economics is all about.

Adam Smith Athletics: Erasmus Vitality AwardOn Thursday afternoon, the 12th of September, the ESE team called ‘Adam Smith Athletics’

received the Erasmus Vitality Award. With the cheering of Olympic bronze medal winner Elizabeth

Willeboordse and many colleagues, the schools and EUR shared service centres, engaged in several

friendly competitions with each other, which included tug-of-war, lively table football and a relay

race of 10 x 200 metre. The ESE team reached the finals quickly during the tug-of-war, but

ultimately lost to the other team. The football contest was won 3 to 0 and during the relay race

they beat everybody. The ESE team managed the 2000 metre run (10 x 200) in 8 minutes and 40

seconds! The Adam Smith Athletics team consisted of Willem Verbeke (captain), Bauke Visser, Bas

Karreman, Jullienne Gallant, Ludo Waltman, Guido Lafeber, Wilco van den Heuvel, Martin Bog,

Remco Prins and Paulien de Charro.

The ESE aims to make students feel at home at its Woudestein campus in Rotterdam. Its goal is to create aplatform for students in such a manner that their studies at the ESE mark the start of inspiring careers. Toappreciate such a start, it is important that prospective students are pretty certain that they want to studyeconomics or one of the other programmes offered at the ESE. Students should be aware of the fact thatthey will be challenged, that their studies will take time, that they are supposed to be self-conscious, andthat economics is a hard-to-master discipline. The ESE marketing strategy is aimed at these aspects.Furthermore, during the first year of study, much attention is given to the question whether or not thestudent has made the right programme choice.When a student firmly decides that economics is what he/she wants to pursue, the ESE meets thedemands and qualities at that individual’s level. At the ESE we have a bimestrial system, where each timeperiod covers eight weeks. Within each period the students have a limited amount of courses, but each of


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these at an intensive level. We strive to have experienced academic teachers (like endowed and fullprofessors) to give the plenary lectures, while after that, more junior academics articulate the material ininteractive smaller scale seminars. These seminars are compulsory for the students, also because theseseminars are where they acquire verbal and writing skills. Besides these, there are small scale tutorialswhere exercises are the main issue. In case students cannot meet the standards, which can sometimeshappen in the first year of a bachelor programme, due perhaps to a mismatch between high school andthe ESE, the ESE offers opportunities for remedial teaching. Students are monitored closely within theirmentor groups. The ESE takes student evaluation reports very seriously. Teaching staff is asked to followadditional teaching skills and training when evaluation reports indicate problems with the teachingquality and teachers who cannot meet the standard will eventually be replaced by other teachers.

Students who show excellence will be challenged in honours classes. These classes already start in the firstyear of the Bachelor programme. Also in the Master programme we have honours classes (these aresponsored). The main intention of the special programmes is to challenge the students by expanding thehorizon of a given programme, by offering classes on special topics and recent issues and by giving moredepth to their current program, for example, by offering PhD-level classes to these undergraduatestudents. The best students are also invited to become research assistants to the ESE’s very best academics.

As economics concern human life in general, and is of interest to most of us, the ESE academic staff seeksto clarify and convey their recent scientific insights to a wider audience. They give advice when beingasked, and they give opinions also when these are not asked. Some ESE academics are regarded as ‘trueleaders’ in their specific field, which is reflected by invitations they receive to attend importantconferences, by visitors who come to the Erasmus University Rotterdam in order to work with them, or bylarger audience books or other publications that trigger nationwide or international discussions. The ESEstrongly favours the apprenticeship model (in Dutch: ‘meester gezel’), which has been so successful in theNetherlands in earlier times.

The academic staff is supported by a pool of non-academic staff, which assists with administrative issuesand with everything else required to make the teaching programme(s) run smoothly, thus facilitating thedaily activities of students and academics alike. The quality of this work force is excellent; they aresupportive, loyal to the ESE and they provide an atmosphere that makes our daily presence at the schoola pleasure.

The ESE greatly values its alumni and would like to improve their active commitment to the School. Since2007, the ESE, together with the EFR student organisation and the separate student/alumni organisationshas planned and organised a variety of meetings and/or events for the alumni community. In fact, somealumni are actively involved in helping to outline the ESE future plans and programmes.

In 2008 the website of the ESE experienced major changes. Simplicity (in use) and versatility (regardingfunctionality) are the key words to describe the new content management system Typo 3. In fact, thewebsite can be adapted and new functions can be added in a very simple manner without the knowledgeof specific computer languages. The changeover involves more than just a mere technical change. The‘old’ system was bogged down by a variety of restrictions within its navigation structure, resulting in veryfragmented information being made available to the end user. Alongside the transition of the content, anew navigation structure was built and all pages were actualised and cleaned up. The content can begeared specifically towards each individual target group and can thus be used more effectively as astrategic means of communication.

The ESE continually seeks to explain to the public-at-large why research undertaken by the institute is sorelevant. With the creation of its website EconomieOpinie.nl in September 2007, the ESE initiated anopinion platform incorporating newsworthy scientific breakthroughs, views and topical articles relatingto national as well as international economic issues. Articles are written by ESE economists anticipating orcapitalising on current issues. In this manner, the ESE provides a scientifically substantiated contributionto the political and social arena. Often, contributing researchers are invited to further illustrate theirparticular point(s) of view to the press or on radio and television programmes. This generates additionalpublicity for our School. In 2008 28 topical articles were published in a special book.


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The credit crisis, greed and my own back garden - EconomieOpinie 23 October 2008Josse DelfgaauwAccording to Minister Bos, the current credit crisis shows that there should be an end to greed and

rummaging about in the financial sector. Bonuses must be decreased and government supervision

must increase. Some people, such as French President Sarkozy, take a step further and plead for a

greater role played by government in the economy. We now face the risk of going to the other

extreme in criticising the market and praising regulations and government interventions. Limiting

greed also has its costs.

The ESE possesses an extensive national and international network in the area of research and education.As it turns out, the IBEB Bachelor programme, the various master degree programmes as well as post-experience programmes, increasingly attract top students from overseas. All the more so, staff is regularlyrecruited via international channels and the graduate Rotterdam economists more often than notcontinue their working careers within the international business community as well as with otherinternational economic entities. Bearing this in mind, we very much want to adopt a more internationallycompetitive position in the recruitment of students, talented scientists and research grants.The preferred prestige and positioning of the School was not supported by a recognisable brand name.The designations Faculty of Economic Sciences (FEW) and Erasmus School of Economics (ESE) were used atrandom in a rather disorganised fashion. From a marketing and communications point of view wepreferred to use the name Erasmus School of Economics (ESE) in all our communications. By doing so, theSchool will obtain a clearcut and identifiable profile. The change towards the use of this unequivocalbrand name needed to take place in a very well planned and meticulous manner. Apart from the changein official letterhead, name cards, e-mail- and web addresses, we had to also adapt our officialcertificates, including the degree certificates, as well as all public relations and exhibition material and allstatements directed from central level (including public signboards), central registrations, etc. We tookour time to implement this change in order to be able to present ourselves everywhere via our new brandname by January 1st 2009.


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3.3 ESE organisation: lean and meanThe internal ESE organisation is essentially designed per scientific section, but also shows signs of a matrix

organisation. The organisation of the primary processes of the ESE is designed along two axes, known as the

scientific axis and the educational axis. Centred within the scientific/knowledge axis are the departments; the

education management can be found within the educational axis. The ESE activities are mainly organised and

directed from within its four departments as well as the education management.

Figure 1: The ESE Organisation Chart

The School’s activities are facilitated by two research schools accredited by the Royal NetherlandsAcademy of Arts & Science (KNAW): the Tinbergen Institute (TI) and the Erasmus Research Institute ofManagement (ERIM).

• The Tinbergen Institute is the Graduate School and Research Institute in Economics, and it serves theEconomics Schools of the Erasmus University Rotterdam (50%), the Free University Amsterdam (25%)and the University of Amsterdam (25%). The research institute is among the best in the world.Translated into the standards of the leading Journal of the European Economics Association, it occupiesthe first place in Europe. The ESE of the EUR acts as secretariat of the Tinbergen Institute.

• The ERIM Graduate School and Research Institute is the product of a collaborative effort by theRotterdam School of Management and the Erasmus School of Economics within the EUR. It focuses onindividual companies and their environments, intra-organisational and inter-organisationalrelationships, business processes and their interrelationship, and the management thereof.

Both Research Institutes are viewed as instruments involved in the execution of the School’s researchpolicy. The ESE aims to group all its fundamental research in these institutes. The link between the ESE’sresearch and the Research Institutes forms an important part of the ESE’s quality management strategy;especially since the Research Institutes are coming up for (re)accreditation. Membership of the ResearchInstitutes is contingent upon publishing sufficient articles in journals listed on the Research Institute’sjournal lists (classifications of scientific and professional publications that have impact on thescientific/academic field that the Research Institute in question covers).

DEAN

VICE DEANADMINISTRATION OFFICE

ESE

EDUCATION MANAGEMENT

TINBERGEN INSTITUTERESEARCH

INSTITUTESERASMUS RESEARCHINSTITUTE OF MANAGEMENT

SCHOOL’S COUNCIL

EXAMINATION BOARD

RESEARCH ADVISORY BOARD

EDUCATION COMMITTEES

DEPARTMENTS

ECONOMICSBUSINESS

ECONOMICSECONOMETRICS

APPLIEDECONOMICS


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In 2008 the ESE started with a more active marketing strategy. Marketing will focus on improving theidentity of the ESE by communicating the key values of our school: research and education in Economicswith a strong focus on content and quality.Furthermore the connection with the city of Rotterdam and the dynamic environment that is created bythis location will be highlighted.This must result in:1.A better and more active relationship between students and the ESE.2. Improving relationships with business (‘Business Class in Economics’) and politics (‘Political Economics’).3.Generating 2nd and 3rd funding flows.

For much of the contract funding (education and research), the ESE is supported by a group of privatelimited companies which are in turn, part of EUR Holding Ltd. In this respect some new developmentstook place in 2008:• As of May 2008 The Erasmus Academie Ltd operates under the administrative responsibility of the ESE.The Institute aims to be the authoritative institute for lifelong learning of the Erasmus UniversityRotterdam. In association with scientists of the several Schools of the EUR, the Erasmus Academyorganises academic postgraduate training programmes, master classes and educational events (scientificcongresses) for professionals. The organisation of HOVO Rotterdam (the higher education for everyonewho is 50 years and older), also takes place under the responsibility of Erasmus Academy Ltd.

• IHS Ltd, the Institute for Housing and Urban Development Studies, has celebrated its 50th anniversarythis year. For half a century, IHS has been 'making cities work'. This is reflected in the anniversary theme“Cities are more important than countries”. Several events marked the 50-year celebrations.

• As of June 2008, the postgraduate MSc inMaritime Economics and Logistics ofMELEUR Ltd has been a12-month fully accredited international MSc programme, jointly offered by the Erasmus School ofEconomics and the Rotterdam School of Management (RSM). Throughout Europe an accredited MSc isincreasingly demanded by students, employers and accreditation organisations in their home countries.

• As of September 2008, the postgraduate MSc inManagement of the European Metropolitan Region

(MEMR) of RHV Ltd has been accredited. The course deals with urban management in Europe andwelcomes people from all over the world who want to learn from the European experience.

LT D D I R E C T O R W E B S I T E

EC3MA Ltd Loek Worm MSc www.isam.nl and www.ilsbe.nl

Erasmus Ad Hofstede MSc www.eur.nl/erasmusacademie/

Academie Ltd

EURAC Ltd Professor Harry Commandeur www.esaa.nl/

FEI Ltd Professor Peter Kavelaars www.feibv.nl/

IHS Ltd (50%) Nico van der Windt MSc www.ihs.nl/

MELEUR Ltd Professor Hercules www.maritimeeconomics.com/

Haralambides

RHV Ltd Professor www.eur.nl/informatie_voor/bedrijven/Leo van den Berg eurholdingbv/werkmaatschappijen/rhv/

SEOR Ltd Professor Jaap de Koning www.seor.nl/

Instituut SMO Ltd Dr Hans Smit www.smo.nl/

Table 2: List of Ltds powered by the ESE


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4 . R e s e a rc h

4.1 IntroductionThe ESE continues to have outstanding successes in conducting cutting-edge research across the broadestrange of disciplines in the economic field. Researchers at the ESE continue to cross the borders betweenthese disciplines and apply new techniques to old (and new) problems. In 2008 ESE retained its leadingposition in the ESB Top 40 of most publishing economists.

Besides retaining its leading position in the ESB3Top 40 of most publishing economists, our researchersreceived various grants and awards. One of our researchers received the Franz Edelman Award and scoreda hit on YouTube whereas another retained his leading position as the most publishing economist.

Attracting research funding as well as producing more publications has been one of the prominent focalpoints of the School this year. Moreover, acquiring external funding becomes increasingly important forthe status and expansion possibilities of our School. Therefore, the ESE introduced an external fundingteam: to increase the success rate of external funding applications, to create a systematic awareness ofgrant opportunities, target potential applicants and to assist the academic staff in preparing proposals forfunding.

4.2 ESB indexesEvery year the ESB publishes the names of the 40 top economists, which reflects the internationalpublications of economists associated with Dutch universities. Upon deciding who will be in the Top 40 of2008, ESB looked at the publication period between 2002 and 2006. For some, the Top 40 is also a usefulinstrument when it comes to distributing the scarce research funds of the various schools. A top positionin the ESB also exemplifies that the university’s research policy promotes efforts that translate into theseresults.Erasmus University Rotterdam has for the third time in a row attained the first position in the annual ESBTop 40 Economists list. Many EUR economists are among the top 40 most publishing economists and,among the participating universities, EUR is ranked as the most publishing university. This ranking ismainly due to the scientific output of academics in marketing, health economics and econometrics.Professor Philip Hans Franses retained his number 1 position on the list in 2008. The most notableresearcher in the Top 40 is Nobel Prize winner Professor Clive Granger, at number 13. Granger, at 74 yearsof age is also the oldest participant in this topranking list of economists.With 60 publications in the relevant 5-year period, Philip Hans Franses’ output outnumbers – again - thatof his colleagues. Professors Rutten (5), Van Doorslaer (11) and Bleichrodt (15), all affiliated with Instituteof Health Policy and Management (iBMG) of the Erasmus University as well as ESE, are in the top 15 of thelist. Furthermore, ESE professors Clive Granger (13), Peter Wakker (16) and Stefan Stremersch (19) are allpositioned in the top 20.

N A M E R A N K I N G 2 0 0 8 R A N K I N G 2 0 0 7

Philip Hans Franses 1 1

Frans Rutten 5 -

Eddy van Doorslaer 11 20

Clive Granger 13 11

Han Bleichrodt 15 12

Peter Wakker 16 7

Stefan Stremersch 19 14

Table 3: ESB Economists top 40 (2008 en 2007)

3 Economische Statistische Berichten, Dutch biweekly professional journal


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EUR economists also scored well in the International Citation Top 30 ranking of Dutch economists. TheCitation ranking 2008 uses the citations over the period 2001-2005. According to the rules, the citationsare counted on the base that they are part of the data in the Social Science Citation Index, the ScienceCitation Index, the Arts & Humanities Index and the Web of Science from Thomson ISI. There was a 15%increase in citation scores for the ESE. Nonetheless, the University of Tilburg took over first place in thisranking (with a slight difference in scores).

N A M E R A N K I N G 2 0 0 8 R A N K I N G 2 0 0 7

Clive Granger 2 --

Eddy Van Doorslaer 4 4

Peter Wakker 10 9

Philip Hans Franses 18 15

Han Bleichrodt 26 26

Table 4: ESB Citation top 30 (2008 en 2007)

4.3 Increase of quality and quantity of ESE publications2008 saw a continuous increase of journal publications.

S C I E N T I F I C P U B L I C AT I O N S 2 0 0 8 2 0 0 7 2 0 0 6 2 0 0 5

Journals 355 230 205 189

Internal reports 96 108 110 142

books (edited, review, chapters) 70 89 88 51

Dissertations 26 24 22 24

External reports 18 36 17 13

Remainder 41 89 42 27

Total 606 575 484 446

Professional publications 81 66 33 49

Table 5: Publications ESE 2008, 2007, 2006, 2005

Both the Tinbergen Institute and ERIM have lists of academic journals. The journals on these listscorrespond with the institute’s focus on research; consequently, the ERIM Journal List has more focus onOrganisation, Marketing, Business and Strategy. The Tinbergen Institute focuses on econometrics, financeand international markets or labour, regional and environment, as well as on institutions and decisionanalysis. Any one journal is not considered more important or more leading than the other. ERIM and TItherefore solved this by ranking the journals in three categories. For TI the highest rated journals have anAA status, good journals are rated with an A and acceptable journals with a B. ERIM uses differentcategories, the P* journals are top notch, P journals are good and S rated journals are secondary. Table 5shows the number of publications in the Journals List of TI and ERIM. This table clearly shows that thenumber of publications in top journals of TI has doubled in 2008.

J O U R N A L R AT I N G 2 0 0 8 2 0 0 7 2 0 0 6

TI AA 4 2 0

TI A 18 21 15

TI B 91 38 27

ERIM P* 9 17 12

ERIM P 55 31 33

ERIM S 24 25 30

Table 6: Publications according to TI and ERIM lists.


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4.4 Research accreditation in progressResearch institutes in the Netherlands are assessed on a regular basis. This assessment consists of aperformance evaluation of the institute in question, conducted by an international advisory committee.The main aims of the assessment are:• Improvement of the quality of research through an assessment carried out according to internationalstandards of quality and relevance;

• Improvement of research management and leadership;• Accountability to the higher levels of the research organisations and funding agencies, government,and society at large.

The assignment in 2008 of the Peer Review Committee (PRC) was to assess productivity, relevance andviability of research in the research institutes and their research programmes in the period 2001 up to andincluding 2007 using international scientific standards the quality. The assessment is performed by anindependent international external evaluation committee. The review committee consists of ninemembers including the chair. Committee members are experts in one or several of the programmes of theresearch institutes under review. Some of them have a background in interdisciplinary research. Themembers of the committee are well-established scientists with an international reputation. They arecompletely independent from the research institutes under review.In order to start the assessment, the board and programme leaders of the ESE wrote a self evaluationreport over the period 2001-2007. For registration of research data, the School made extensive use of theUniversity research database METIS, in which publication data is stored. In view of the researchaccreditation, data has been cleared and updated, e.g., publication data were completed, author rankingrecorded correctly, missing publications were added and the correct publication category was checked;thus making the database much more reliable. At the same time, a project was initiated to realise aPersonal Metis. Using this module, the researcher is the one responsible for input of publications and notthe secretariat of each department. In December 2008 the Personal Metis project was introduced to allacademic staff members (both researchers and PhD candidates).Since it was impossible to gather all the commission members during one complete visit to theNetherlands, it was decided that discussions with the ESE programme leaders would take place in twovisits, one at the end of November 2008 (for the programmes Finance & Accounting and International

Markets, Marketing andManagement Science) and another one in the beginning of May 2009 (for thethree programmes Applied Economics, Economics and Markets, Organisations and Government). This alsomeans that the results of the PRC will not be published before summer 2009.

4.5 Team for funding opportunitiesAcquiring external funding becomes more and more important for the status and expansion possibilitiesof our School. Therefore, we would like to increase the success rate of external funding applications.Creating a systematic awareness of grant opportunities, targeting potential applicants and assistingfaculty staff in preparing proposals for funding are very important tools for achieving these goals. In thisrespect a team for external funding opportunities was created, that will support all members of ourSchool in systematically exploring grant opportunities and collaborating with them towards a winningproposal.The team consists of:• Roel van den Berg MSc (ERIM), who specialises in academic projects (knowledge development),especially where it concerns European grant opportunities like those provided by the EuropeanResearch Council (ERC) and the Marie Curie Fellowships, and strategic projects (combination ofknowledge development and anticipated knowledge application), especially where it concerns fundingfrom FP7-Cooperation.

• Professor Herman K. van Dijk, who will assist all the staff members concerning academic projectsfunded by NWO (Netherlands Organization for Scientific Research) and KNAW (Royal NetherlandsAcademy of Arts and Sciences). His extensive experience with writing and reviewing proposals for NWOand KNAW will be used in order to write successful applications.

• Guido Lafeber MSc (until November 2008) / Elaine Rouwet MSc (starting in November 2008), the policyadvisors research at ESE who will support the academic staff with respect to the deadlines for anyfunding opportunity, application fees and the research policies of the ESE.


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The most relevant opportunities that exist for funding of research are placed on a weekly updated tableon the ESE website.

The ESE was very pleased with ERIM’s offer to allow members and non members to participate in theERIM grant workshops. The interest of ESE researchers in attending these workshops was good and theparticipants were very satisfied with the quality of this service.

4.6 Internal grants and awardsOn Thursday, February 21, 2008 Vice-dean Casper de Vries of Erasmus School of Economics awarded tenresearchers from our school the title of Top Researcher 2007. Researchers awarded were Han Bleichrodt,

Dennis Fok, Richard Paap, Stefan Stremersch, Otto Swank, Dick van Dijk, Herman van Dijk, Eddy van

Doorslaer, Willem Verbeke and Peter Wakker. The award also included a grant of € 10,000. Researchershad to publish at least three top publications between 2002 and 2006 or occupy a position in the DutchESB Economists Top-40 the Citation Top 30 and/or the Tip Parade of 2007 to obtain a nomination for thisaward. All ten of the researchers met one or more of these criteria.

The Top Researcher regulation was created to encourage ESE researchers to submit top publications andto be rewarded for the effort. In 2008 the Top Researcher regulation was revised in order to stimulateand award young gifted researchers. Starting with the ceremony in 2009, the Top Researchers regulationwill be divided into two subdivisions: Top Talent Researcher and Senior Top Researchers. A researcher canonly become a Top Talent Researcher if he/she obtained a doctoral degree in the past 8 years and ifhe/she has published at least two Tinbergen AA/A and/or ERIM P* publications during the period t until t-2. All people appearing on the ESB Economists Top 40, the Citation Top 30 and/or the Tip Parade shall begiven the title of Senior Top Researcher.

On December 11, the 7th annual ERIM Awards Presentation Ceremony took place. At the Ceremony ERIMhonored its best researchers and the best research support officers. The prizes are divided according todifferent academic disciplines, such as the Impact Award, the Book Award and the Dissertation Award.ESE researchers received 3 awards.• Wilco van den Heuvel received the Award for Outstanding Performance by a Young Researcher. Wilcois a researcher at the Econometric Institute of the Erasmus School of Economics. Moreover, he is anentrepreneurial researcher who explores new fields of research. A year ago, at the ERIM AwardsCeremony of 2007, Wilco van den Heuvel received the NWO-VENI grant. The jury decided unanimouslyto select Wilco van den Heuvel for this award on the basis of his outstanding publications on Production

Scheduling in top scientific journals such as Operations Research. This is also reflected in the fact that he

received an NWO Veni Grant on the new topic of ‘Reducing the Price of Anarchy in Supply Chains’. This

Veni grant also shows that external reviewers not only value the excellent quality of his past research

but they have high expectations of him for the future (as does this jury). For a young researcher, his

research achievements in such a short time are really outstanding.

• Ingolf Dittmann (Professor of Corporate Governance and Managerial Accounting at the ESE) & ErnstMaug have received the Top Article Award 2008 for their article: “Lower Salaries and No Options? Onthe Optimal Structure of Executive Pay”, published in The Journal of Finance in 2007. The jury says: Thisis a very elegant article that is highly relevant for society. This paper provides a fresh and imaginative

look at the issue of how executives should be compensated to maximise shareholders' wealth. And

more specifically, is granting stock options an effective way to align the incentives of shareholders and

executives? The authors show analytically that CEO compensation should not include stock options but

shares. Furthermore, a significantly lower level of fixed compensation is necessary to motivate the CEO.

This result is an important contribution to the literature and addresses a ‘very hot topic’ in

management.


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• Dennis Huisman of the ESE, Leo Kroon, Lex Schrijver, & Gábor Maróti received the ERIM Impact Awardfor their research on Netherlands Railways: The New Dutch Timetable—the OR Revolution. This year,this team won the very prestigious INFORMS Franz Edelman Award recognizing outstanding operationsresearch practice. It is the very first time that a Dutch team won this award. The jury says: This researchillustrates perfectly that the profession of Operations Research can have a major impact on the practice

of management, in this case Netherlands Railways. The new and robust timetable led to more efficient

use of resources, resulting in major savings of 40 to 70 million per year, more satisfied employees, and

more satisfied customers, since the trains run more on time than ever before! The results are concrete

and simply impressive.

Ellen van der Poel received the Dr W.H. Posthumus-van der Goot Stipendium which is an award fortalented female PhD candidates. In order to encourage excellent female PhD students, from now on theDr W.H. Posthumus-Van der Goot Stipend will be awarded every two years to seven talented andpromising female PhD students who are recommended by the counselor.

4.7 External grants and awardsWilco van den Heuvel of the Department of Econometrics, has received a Venigrant from the DutchOrganisation for Scientific Research (NWO) for his project ‘Reducing the Price of Anarchy in SupplyChains’. Delivery chains consist of a series of companies involved in the manufacturing of a certainproduct. Because companies within the delivery chain have different goals, the chain costs are oftenhigher than strictly necessary. The project of Wilco Van den Heuvel will determine whether coordinationmechanisms will enable cost saving.

Dennis Huisman, associate professor at the Econometric Institute of the ESE won the Edelman Awardtogether with a team from the Dutch Railways (NS). The Edelman Award is the worldwide innovationprize (similar with an Oscar!). The team designed the completely new Dutch time table, which wasintroduced in December 2006 by the Netherlands Railways. This complex timetable was created tofacilitate growth of passenger and freight transport on a highly utilised railway network and to improvethe robustness of the timetable in order to reduce the number of train delays in the operation. Tosupport this process, operations research techniques were used to generate several timetables, one ofwhich was finally selected and implemented. Moreover, he scored a hit on YouTube together with histeam of the Dutch Railways (NS) for their performance.

Stefan Stremersch received the 2008 Early Career Contributions to Marketing Strategy Research Awardfrom the American Marketing Association for his contributions to research on marketing strategy. TheAward is based on the impact, quality and quantity of his research.

Martin Hoogendoorn received the Limperg Penning Award during the annual Limperg day. He receivedthe award for his contribution to research on accounting and auditing and the combination of theory andpractice.

Netspar has approved a 500K euro grant to Customer Integration researchers Benedict Dellaert and BasDonkers for research on how individuals can best be aided online in making pension decisions. Theresearch project involves two PhD projects and a post-doctoral position and also includes cooperationwith professorGerald Häuble from the University of Alberta in Canada. The project will start in April 2009 and is closelyin line with previous research of Benedict Dellaert, Bas Donkers and others on empowering consumersonline, and bundled in the ERIM Topic Center on Customer Integration.

The Netherlands Organisation for Scientific Research (NWO) has granted three Free Competition researchsubsidies to the ESE (Philip Hans Franses and Dick van Dijk, Albert Wagelmans and Otto Swank). Eightout of 39 proposals which have been examined by the NWO have received funding, ESE strikes up 40% ofthe available subsidy with their three granted proposals.


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S TA F F M E M B E R AWA R D

Han Bleichrodt, Dennis Fok, Richard Paap, Top Researcher 2007

Stefan Stremersch, Otto Swank, Dick van Dijk,

Herman van Dijk, Eddy van Doorslaer,Willem Verbeke and Peter Wakker

Ellen van der Poel, Dr W.H. Posthumus-van der Goot Stipendium

Wilco van den Heuvel Veni grant from the Dutch Organisation for Scientific

Research (NWO)

Bert van der Knaap Distinguished visiting professor at the University of

Hunan, China

Bert van der Knaap Member of the advisory committee of the Netherlands

Environmental Assessment Agency

Dennis Huisman Franz Edelman Award 2008

Stefan Stremersch Early Career Contributions to Marketing Strategy

Research

Martin Hoogendoorn Limperg Award

Benedict Dellaert and Bas Donkers Netspar

Philip Hans Franses & Dick van Dijk, Albert Wagelmans NWO Open competitionand Otto Swank

Wilco van den Heuvel, Ingolf Dittmann, ERIM Awards

Dennis Huisman

Table 7: Short summary of awards presented to ESE staff in 2008


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4.8 Other memorable activitiesIn January 2008 Stefan Stremersch, Professor of Marketing at the ESE was the first academic to beawarded the Desiderius Erasmus Distinguished Chair of Economics. Stefan Stremersch is an extraordinaryand innovative talent who has earned international recognition. His quality specifically lies in hiscombination of the fields of marketing and strategic management. Stremersch has been presented withseveral important awards for his scientific work, including the Maynard Award for the best thesis in theJournal of Marketing. In 2005, Stremersch was elected a member of The Young Academy (DJA) of theRoyal Netherlands Academy of Arts and Sciences (KNAW) and in 2006 he was recognised for Excellence inInternational Marketing by the American Marketing Association.

On January 21, 2008, Ivo Opstelten, Mayor of Rotterdam and Steven Lamberts, Rector Magnificus ofErasmus University Rotterdam, officially presented the new Erasmus Centre for Urban ManagementStudies (ECUMS) in Rotterdam’s City Hall. ECUMS is a platform initiated by the Erasmus School ofEconomics uniting a number of partners within the university who are working on urban managementissues. Efforts are brought together under one roof, so that Erasmus University Rotterdam, working inpartnership with the City of Rotterdam, can continue to develop as an international focal point forresearch and education in the areas of urban development and education.

Herman K. van Dijk, who holds a personal chair in Econometrics, has been appointed as the new GeneralDirector of the Tinbergen Institute, starting on March 1, 2008. He succeeds Professor Maarten Janssen.The Tinbergen Institute is the graduate school and research institute in economics of Erasmus UniversityRotterdam, University of Amsterdam and Vrije Universiteit Amsterdam. More than 100 research fellowsparticipate in the institute's research programme. For over 6 years the Tinbergen Institute has beenoffering a very successful and internationally acclaimed two-year MSc/MPhil programme in economics,which is part of a five-year PhD track.

In October 2008 Philip Hans Franses, Professor of Applied Econometrics and Marketing Research was thesecond professor who was conferred the Desiderius Erasmus Distinguished Chair of Economics. Throughthis recognition, the EUR strives to bring about a long-term working relationship with eminent scientists.This designation is connected to an existing chair and is awarded for a period of seven years. TheExecutive Board of the Erasmus University Rotterdam concluded that Professor Franses should not only beseen as the ambassador of the Econometric Institute at the Erasmus School of Economics, but also asambassador of the Econometric discipline in general, in the Netherlands as well as overseas. The fact thathe takes practical questions as basic assumptions of his education and research as well as his approach tosolve these questions in the smartest and most correct econometric manner, make Professor Franses asource of inspiration for many students, PhD students and colleagues alike. The high quality of thisknowledge transfer, his clear and compact style of writing as well as the successful impact scores of hispublications, have earned him the title of Primus Inter Paris at the Erasmus School of Economics.

4.9 PhD theses results and new PhD studentsThe ESE’s annual target is to achieve a minimum of 20 PhD theses. Last year, 26 PhD students successfullycompleted this track. In 2008 the ESE did not reach its target of accepting 24 PhD students per year. Only17 PhD students were appointed.


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5 . A c h i e v e m e n t s i n 2 0 0 8

ESE researchers are affiliated with one of four departments, each with its own characteristic fields ofresearch: Economics, Business economics, Econometrics, and Applied Economics. It is the ESE target that80% of its academic staff will be members of the Tinbergen Institute and/or the Erasmus ResearchInstitute of Management. In 2008 61.2% were members in comparison to 63.4% in 2007. The slightdecline has a connection to the fact that many new faculty members have joined the school in 2008 andthey are in the process of applying for membership. At the same time, members either retired or left theorganisation in 2008. The expectation is that in 2009 the percentage will grow again.

5.1 Department of EconomicsThe Department of Economics covers micro, macro and international economics, and the economics oforganisations. Their research receives excellent assessments internationally. Areas of specializationsinclude governance and motivation, political economics, trade and international finance.

Education: Learning to analyse is one of the main aspects of the education programmes. Students aretaught how to trace the underlying relations related to a wide variety of problems. The table belowpresents the student’s evaluations of the members affiliated to the department.

A C A D E M I C Y E A R B I M E S T E R AV E R A G E S C O R E

2007-2008 Total 3.80

2008-2009 Bimester 1 3.58

2008-2009 Bimester 2 3.90

Table 8: The average lecturer evaluation scores of the Department of Economics.

• Benoit Crutzen was elected as Top Lecturer 2008.• Josse Delfgaauw was elected Lecturer of the Year Student Award 2007-2008. In November 2008 thelecturer of the year 2007-2008 was chosen. Three lecturers from the department were nominated:Benoît Crutzen, Josse Delfgaauw and Robert Dur. Benoit and Josse reached the 2nd round. At the end,Josse Delfgaauw attained the honour of being "Lecturer of the Year 2007-2008". The winner washonoured with the award during the Bachelor Graduation Ceremony in November.

Research: The department’s faculty was very productive in writing articles in 2008. Publications of JosseDelfgaauw, Robert Dur, Lorenzo Pozzi, Otto Swank and Bauke Visser appeared in journals that are highon the ranking list of the Tinbergen Institute.

• Professor Robert Dur was elected Top Researcher 2008• Maarten Janssen was announced as No. 30 on a list of the best economists in the German LanguageArea. The list was made public in Germany by Handelsblatt in September 2008.

• Vladimir Karamychev became a TI fellow per 8 December 2008. Within the department, 55% of theacademic staff are now fellows of the Tinbergen Institute as of 31 December 2008.

Research Projects:• Dr. Vladimir Karamychev worked together with Peran van Reeven of the Department of AppliedEconomics on a project for Enact.

• Professor Otto Swank received a N.W.O. grant for 3 years for a post doctorate.• Professor Casper de Vries invested a great deal of effort in establishing the Duisenberg School ofFinance.


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In 2008 the following PhD theses were completed:

N A M E S U P E RV I S O R D AT E O F D E F E N C E T H E S I S T I T L E

Ana Babus Casper de Vries 22 May Essays on Networks, Theory and

and Sanjeev Goyal Applications

Eddie Bekkers Joe Francois 18 September Essays on Firm Heterogeneity and Quality in

International Trade

Gus Garita Joe Francois 18 September Financial Market Liberalization

Barrantes and Charles van and Economic Growth

Marrewijk

Chen Zhou Casper de Vries 13 November On Extreme Value Statistics

Sebastian Buhai Coen Teulings 27 November Essays on Labour Markets

Marielle Non Maarten Janssen 28 November Essays on Consumer Search

and Philip and Interlocking Directorates

Hans Franses

Table 9: PhD theses at the Department of Economics

Organised conferences:• A two-day conference on 'Human Relations, Reciprocity, and Incentives in the Workplace' took place onDecember 5-6. The conference was organised by Robert Dur.

• In celebration of its 50th anniversary IHS/EUR organised a two-day workshop entitled: ‘Are cities more

important than countries?’ Charles van Marrewijk was one of the organisers.• This year too, the department organised several seminar series: Research on Monday, the Brown Bagseminars and a field seminar on Economic Theory and International/Macroeconomics.

International guests: the following international guests visited and cooperated with our department in2008:• Richard A. Chisik, Associate Professor of Economics, Florida International University• Sophia Delipalla, Assistant Professor of Economics, University of Macedonia• Wallace E. Huffman, Professor of Agriculture, Life Science and Professor of Economics, Iowa StateUniversity.

Staff:• Dr Leon Bettendorf has resigned from his position as Macro-Economist. He has accepted a position atthe Centraal Plan Bureau.

• Professor Robert Dur was appointed Endowed Professor of Economics of Incentives and Performance on1 December 2008 through the Vereniging Trustfonds EUR. He was already an associated professor at ourdepartment.

As of December 1 2008, Professor Robert Dur (1973) has been appointed Professor of ‘Economics of

Incentives and Performance’ at the Department of Economics. Dur earned his PhD (cum laude) in

2000 at Erasmus University, received a Vidi grant from NWO in the same year, and won the Erasmus

University Research Prize in 2001. His research has been published in journals such as American

Economic Review and Economic Journal. Further, he is co-editor of the journal of Economics of

Governance and a research fellow of the Tinbergen Institute, CESifo in Munich, and IZA in Bonn.

Before his appointment, he was associate professor at the same department. Besides his teaching

in Rotterdam, he taught at universities in Milan, Moskow and Vienna in recent years.

• Dr Paul de Hek was appointed temporarily as assistant professor.• Professor Maarten Janssen has resigned from his position as Professor of Microeconomics in April 2008.He has accepted a position at the University of Vienna (Austria). Professor Janssen will continue to holda parttime temporary appointment with Erasmus University Rotterdam on a chair for Economic Policy.

• Dr Jurjen Kamphorst was appointed on a post-doc position granted by NWO.


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• Professor Fieke van der Lecq was appointed Endowed Professor on the Chair Pension Markets on 1September 2008 through the Vereniging Trustfonds EUR, fully supported by the Cordares Pension Fund.

• Professor Charles van Marrewijk has resigned from his position as Endowed Professor in December2008. He has accepted a position at Utrecht University.

• Dr Lorenzo Pozzi, appointed as per 1 September 2007, has received a tenure position per 1 September2008, due to his excellent achievements.

• Professor Otto Swank is the new director of the Department of Economics as of April 2008. ProfessorSwank succeeded Professor Jean-Marie Viaene, the former Director of the Department.

As of 1 September 2008, Professor S.G. van der Lecq has been appointed as professor on the

Pension Markets Endowed Chair on behalf of the Trust Fund Association EUR (Vereniging

Trustfonds EUR). In order to stimulate research into the advantages and limitations of market

mechanisms in the pension sector, Cordares sponsors a chair at the Erasmus School of Economics in

Rotterdam. Cordares supports research into the advantages and limitations of the market

mechanism in the pension sector in the expectation that this will have a positive effect on the

functioning of the whole sector. In combination with the actual business practice, research should

demonstrate how market mechanisms can have a positive effect on the pension sector and how

negative effects can be avoided.

5.2 Department of Business EconomicsThe Department of Business Economics of the Erasmus School of Economics consists of three sections:Accounting, Auditing & Control (AAC, including the Institute of Economics of Taxations (FEI BV)), Financeand Marketing. In 2008 Professor Hans Gortemaker continued to be the director of the department,Daphne Willems continued to be the office manager, while Rob van der Wal MSc is the head of the AACsection and also the direct assistant to the director, Professor Willem Verschoor is head of the Financesection and Professor Benedict Dellaert is head of the Marketing section, as well as vice director of thedepartment. This annual report shows an overview of important activities which have taken place in 2008.It also shows problems with which the department had to deal with last year. Without claiming to becomplete, it gives an idea of what the department was doing in 2008 and what major problems itencountered.

Education: The AAC Section provides both bachelor’s and master’s degree programmes (the initial studyprogrammes) as well as post-experience programmes (especially the programmes for CharteredAccountants and Registered Auditors). Due to vacancies within the section, AAC student assistants mainlytook care of small-scaled tutorials during the first two years of the bachelor programme; externalteachers took care of seminars (in the bachelor programme) and supported students with their thesesboth in the bachelor’s as well as in the master’s programme. The quality of education is a main priority inthe section. For this reason evaluation results of our education by the students are very important and aremainly satisfactory: the section has good and even excellent scores for a huge numbers of courses. Inexceptional cases, in which evaluation results are not that good, constructive measures have been takento improve the quality.Research: Special attention has to be given to the annual congress of the EEA: About 1,100 scientists fromall over the world visited this congress. Staff members from the AAC section have been highly involved inthe organisation of this congress, which took place in Rotterdam in 2008. The AAC section expresses itsgratitude to the people who were involved in the organisation of this congress. Thanks to their effortsthe congress has been a very great success after months of preparations. It is good to know that in 2008two of the submitted research proposals from the AAC section have been approved by the ESE ResearchAdvisory Board. This means that meanwhile three PhDs are involved in one of the two approved researchproposals, in which there is cooperation with the Professors Groenen (ESE) and Van Knippenberg (RSM).

TheMarketing section has experienced a good year in 2008 because of excellent research output.Research activities have continued along the three major themes of the research programme: Technologyand Life Sciences Marketing (Stremersch, Dellaert, Donkers, Lemmens, Landsman, Wendel), Behavioural


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Marketing (Dellaert, Stremersch, Verbeke, Donkers, Prins), and Marketing Models (Stremersch, Dellaert,Franses, Donkers, Lemmens, Landsman, Bruno, Prins). Publications within these themes are appearing orforthcoming in top marketing journals such as the International Journal of Research in Marketing, Journalof Marketing, Journal of Marketing Research, and Marketing Science. As in previous years, multipleresearch seminars were organised within the ERIM programme, in close cooperation with the marketingdepartment at RSM. Stremersch’s co-editing function of the International Journal of Research inMarketing has continued to strengthen the international visibility of the section in terms of an excellentplace to do research. To expand the relevance of our research for society, activities of the section’sinstitute for contract research and teaching were further continued. Within the EC3MA Ltd. both theInstitute for Life Sciences Business Economics (iLSBE), and the Institute for Sales and Account Management(ISAM) were active in strengthening existing programmes and developing new initiatives. The institutesmaintain close contacts with several business partners in their respective areas of specialisation.

The Dutch are also nicknamed the ‘Chinese of Europe’ because no matter where you are in the

world, you always come across Dutch people. From where does this spirit of entrepreneurship

originate? From people who take responsibility for their enterprises, according to Professor Willem

Verbeke, Professor of Knowledgebased Marketing.

Verbeke is also the director of the Institute for Sales and Account Management (ISAM). In addition,

he has published his new work, ‘Nieuwsgierig Leiderschap’ (Inquisitive Leadership): a voyage of

discovery into the personality behind a leader. He had interviewed various people who take

responsibility, who expand their enterprises, and have that way earned their mark. On Monday 21

April 2008, an ISAM Round Table Conference took place as a response to the book.

The book ‘Nieuwsgierig Leiderschap’ relates a number of stories. For example, how the Sloggi

billboards came about, how an insurer tapped a new sector that was considered irrelevant by his

colleagues or how a gynaecologist closed his practice and became an account manager, entering

the wide world in order to sell Heath & Safety services to companies because he felt that this way

he could revitalise Dutch society. It emerges that these leaders were not easygoing personalities in

their youth, but apparently had the spirit of entrepreneurship in their veins. They dared to choose,

knew how to shape their environment, and adjust themselves when situations required this every

now and then. In the end, they managed to do wonderful things in their lives and careers. In

‘Nieuwsgierig Leiderschap’, the author stresses that this type of leadership is prevalent among

housewives, coaches of youth football teams, young managers, nurses, etc. These are all people

that held lower positions in their work and who have taken responsibility.

The Finance section aims at research and teaching programmes of high international standards, asrecognised by the community of peers. It focuses on the optimal design, implementation and evaluationof the functioning of international financial markets and its relationship with multinational firms andfinancial institutions, and takes a number of different approaches. These approaches range frominternational finance and corporate finance to corporate governance and risk management. Moreover,different methodological perspectives are chosen: some research is purely theoretical; other parts areapplied or empirically oriented.After a period of instability, the composition of the faculty has stabilised with the arrival of new facultymembers with a strong focus on empirical finance. The section strives to create an interactive andinternational atmosphere that inspires joint research across fields spanning disciplinary boundariesthereby contributing to a shift of the knowledge frontier in finance and economics. Research in financewill remain vibrant for many years to come, mainly because of its increasing relevance for corporatemanagers, international investors, regulators, and policy makers. Within the broad field of finance thesection has developed several research lines, among others behavioural finance, decision making underrisk, financial instability, investors’ anomalies, exchange rate risk, emerging markets, mergers &acquisitions, executive compensation, and real options. The focus on studies on international financialmarkets gives the finance section much cohesion in the form of similar research skills, sharedmethodology and natural co-authors. This has resulted in a lot of joint work (in progress) among themembers of the section. Substantial output was realised during 2008 and the productivity of the group


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has increased in comparison to previous years. In addition, a steady flow of doctoral dissertations hasbeen completed. Links with public policy are evident from publications and columns in international andnational newspapers and expert opinions in the media. The overall reputation is further enhanced by twoaward winning publications, the organisation of ERIM finance seminars and academic conferences, thestay of visiting professors, and the active role faculty members play in participating at relevant academicconferences and workshops.Since the research is integrated within ERIM and TI, the finance section maintains close links with othergroups within the School. Extensive cooperation exists with the financial econometrics group on topicssuch as exchange rate finance, risk management and heterogeneous agents in financial markets. On asmaller scale, there is cooperation with the finance group of RSM and the department of appliedeconomics of the ESE.



Remco Prins Philip Hans Franses 23 May Modelling Consumer Adoption and Usage

of Value-Added Mobile Services

Claudia Brandenburg Ed Vosselman and 4 September A Transaction Cost Analysis of DutchJohn Groenewegen Hospital Care

Marc Schauten Jaap Spronk and 2 October Valuation, Capital Structure Decisions andDick van Dijk the Cost of Capital

Martijn van der Assem Jaap Spronk 16 October Deal or No Deal?

Dimitri van Schaik Jaap Spronk and 30 October M&A in JapanJohn Groenewegen

Ruud Zuidgeest Leo Stevens 21 November Verbondenheid in het belastingsrecht

Guido Baltussen Jaap Spronk 4 December New Insights into Behavioral Finance

Table 10: PhD theses at the Department of Business Economics

Changes of staff at the department of Business Economics:• This year the Accounting, Auditing & Control section again has had to deal with capacity problems. Thesection has vacancies, especially in the categories of Professors and Associate Professors. The capacityhas been that low that only with help of student-assistants and people from outside, the immenseeducation obligations could be managed.

• As of 1 January 2008, Ingolf Dittmann was appointed Full Professor of Corporate Governance andManagerial Accounting. Dittmann (1970) studied and graduated from Universität Dortmund inGermany and has worked at Humboldt-Universität (Berlin). He has already won several research prizesand awards. Dittmann started working at Erasmus University Rotterdam in 2005 . In 2006 he received anNWO VIDI-award for his research project 'Explaining Executive Stock Options in Executive

Compensation'.• As of 1 July 2008, Professor Han Smit took up the appointment as Full Professor of Corporate Finance.From 2001 until 2008 he was Professor of Private Equity, financed by HAL Investments.

• Three excellent new assistant professors (Gelper from the K.U. Leuven), Lourenco (from TilburgUniversity), and Verniers (from Ghent University) were recruited.

• Unfortunately some much appreciated staff members left the Marketing section: Walter van Dyck,Hernan Bruno and Sonja Wendel.

• The problems with the number of vacancies in the Finance section have been solved: Willem Verschoor,who joined the section as from the 1st of March as Full Professor of Finance, has recruited several staffmembers, all assistant professors: Remco Zwinkels, Agniezska Markiewicz and Sebastian Gryglewicz.


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Professor Willem Verschoor was appointed as Professor of Finance at the Erasmus School of

Economics. Up until now he was Professor of Financial Economics and Corporate Finance at the

Nijmegen School of Management, which is part of the Radboud University in Nijmegen. Verschoor

(born in 1962) studied Business Economics in Groningen and received his doctorate from the

University of Maastricht in Forward Exchange Market Dynamics. Among other things, he worked

for several years at Kempen & Co. NV and the Nationale Investeringbank (National Investment

Bank). As a professor of international finance, Verschoor was associated with the Limburg Institute

of Financial Economics, part of the University of Maastricht.

Important events in the department last year (in chronological order):• January: Desiderius Erasmus Distinguished Chair for Stefan Stremersch.• February 21, 2008, in a special ceremony in the Faculty Club of Erasmus University, the Erasmus Schoolof Economics honoured the lecturers of the programme Economics & Taxation of FEI Ltd. They alsohonoured Stefan Stremersch and Willem Verbeke as top researchers.

• May 26: Bas Jacobs gave his inaugural address “De prijs van gelijkheid”.• In September 2008, a start was made with the PwC Honours Class, a programme for excellent master’sstudents in Accounting, Auditing & Control.

• December 9 Ingolf Dittmann won the ECGI Best Paper Competition 2008.

On Monday, May 26, 2008, Professor Bas Jacobs took up his appointment as Endowed Professor of

Public Finance, in particular Economics of Taxation at Erasmus School of Economics of Erasmus

University of Rotterdam through the ‘Vereniging Trustfonds EUR’. In his inaugural address ‘The

Price of Equality’ Bas Jacobs will be searching for the holy grail of economic prosperity: to find the

economically most efficient ways of dividing income. Following the ceremony, he presented the

first copy of the printed version of his inaugural address to the Minister of Finance, Wouter Bos.

Bas Jacobs discussed, among others, the progression of income tax, capital gains tax, higher

education subsidies, the minimum wage and the fiscal subsidies for homeowners and pensions. He

demonstrated that many political views, be that from the left or right, are built on quicksand.

Simultaneously, he burst a few bubbles such as the unsubtle pleas for a flat level tax, lower

inheritance tax and the Life Cycle Plan.

5.3 Department of EconometricsThe oldest university programme in Econometrics in the world is taught at the Econometric Institute,established more than fifty years ago. The institute gave a major boost to the emerging field ofeconometrics and to the prominent role that the Netherlands continues to play in this field today.Econometrics uses statistical methods to study economic theories and relations. Prominent players in thefield of econometrics such as Nobel laureate Jan Tinbegen have been associated with the EconometricInstitute.

Awards/Grants• Wilco van den Heuvel received an NWO-VENI grant for his project “Reducing the Price of Anarchy inSupply Chains”, starting January 2009.

• NWO Free Competition subsidies were granted to Albert Wagelmans and Wilco van den Heuvel fortheir project “Solving the Difficulties in Scheduling in Complex Production Processes”, and to Dick vanDijk and Philip Hans Franses for their project “ Monitoring and Forecasting the State of the Economy”.

• The Franz Edelman award from the Institute for Operations Research and the Management Sciences(INFORMS) was presented to the Netherlands Railways (NS) for “The New Dutch Timetable: The O.R.Revolution”, conducted, among others, by Leo Kroon (RSM and NS), Dennis Huisman (ESE and NS) andGábor Maróti (RSM). It was the first time that researchers from the Netherlands were selected for thisprestigious award. The researchers also received the ERIM Impact Award for this achievement.

• The ERIM Award for Outstanding Performance by a Young Researcher went to Wilco van den Heuvel.


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• Dick van Dijk, Herman van Dijk, Dennis Fok, Richard Paap, and Peter Wakker were awarded the "TopResearcher ESE 2007" grant (as announced in February 2008).

• Rommert Dekker, Dick van Dijk, Philip Hans Franses, and Albert Wagelmans were classified as “HighPerforming ERIM Members 2007” (announced in March 2008).

• Philip Hans Franses held the number one position in the 2008 ESB Top 40 ranking of economists.• Clive Granger was number 13 on the list; Peter Wakker ranked 16.• Jan Brinkhuis, Rommert Dekker, Dennis Fok, Uzay Kaymak, Alex Koning, Martyn Mulder and Michel vande Velden were preselected nominees for the “Lecturer of the Year Student Award 2007-2008”.

Staff• Herman K. van Dijk was appointed as the new general director of the Tinbergen Institute, startingMarch 1, 2008.

• On July 1, 2008 Richard Paap (1969) was appointed as Endowed Professor in Econometrics & Marketingthrough the Vereniging Trustfonds EUR.

• On September 1, 2008, Uzay Kaymak (1968) was appointed as endowed professor in Intelligence andComputation in Economics through the Vereniging Trustfonds EUR.

On July 1, 2008, Dr Richard Paap (1969) was appointed Endowed Professor in Econometrics &

Marketing at the Econometric Institute, Erasmus School of Economics through the Vereniging

Trustfonds EUR. In 1997, Richard Paap obtained his doctorate (cum laude) from the above

mentioned Institute (Department of Econometrics) with a thesis entitled ‘Markov trends in

Macroeconomic Time Series’, a Bayesian analysis in econometrics and marketing. In addition,

Richard Paap occupies one of the positions of the Tinbergen Tenure Tracks, recently instigated by

the Rector of Erasmus University Rotterdam. This 4-year performance contract, starting with the

appointment as associate professor with an appointment on an endowed chair and resulting in a

permanent appointment as professor, is made available to talented scientists with outstanding

performance as well as proven educational and research qualities.

On September 1, 2008, Dr Uzay Kaymak (1968) was appointed Endowed Professor in Intelligence

and Computation in Economics at the Econometric Institute, Erasmus School of Economics through

the Vereniging Trustfonds EUR. Uzay Kaymak holds a Chartered Designer degree in Information

Technology and obtained his PhD from Delft University of Technology in 1998 with a thesis entitled

‘Fuzzy Decision Making with Control Applications’. Since 2000, he has worked at Erasmus School of

Economics, successively as assistant and associate professor in the field of Economics & Informatics.

His research interests include intelligent systems for business and agent based modelling. He is a

member of the editorial board of various scientific journals and has participated in several

European Networks of Excellence on intelligent systems.

Long term guests• Joseph Geunes and Edwin Romeijn (The Industrial and Systems Engineering Department of theUniversity of Florida) visited the Econometric Institute from June 9 - 20 for joint research with AlbertWagelmans and Wilco van den Heuvel on supply chain optimisation.

• David Ardia (University of Fribourg) was a guest PhD student from March - September. David came hereto broaden his knowledge in Bayesian econometrics. Herman van Dijk was his host.

• Arie Ben David (Tel-Aviv University, Management of Technology) visited the institute in September forjoint research with Rob Potharst on ordinal techniques in data mining.

• Michael McAleer (University of Western Australia) joined the Econometric Institute during the monthsSeptember - December as visiting professor. Michael McAleer participated in various research projectswith Dick van Dijk and Philip Hans Franses.

• Mehmet Karacuka (Ege University, Izmir) was a visiting scholar from April - September. He came here towrite part of his PhD thesis; Philip Hans Franses was his host.


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Conferences/lectures/workshops• On January 24 a workshop was organised on “Agent Based Approaches in Economics”. Speakers wereUzay Kaymak (EUR), Sorin Solomon (Hebrew University of Jerusalem), Leanne Ussher (Queens College,City University of NY), and Wolf Ketter (RSM).

• The Econometric Institute and the RSM organised a workshop “3M in Finance and Macroeconomics:Model Averaging, Model Specification and Model Risk” on March 20. Speakers were Sir Clive Granger(University of California and EUR), Lucrezia Reichlin (European Central Bank, Free University Brussels),Peter Schotman (Maastricht University), Massimo Guidolin (Federal Reserve Bank of St Louis andManchester Business School), Francesco Ravazzolo (Norges Bank), Marno Verbeek (RSM), Linlin Niu(Bocconi University), and Herman K. van Dijk (EUR).

• The workshop “Maintenance Optimisation” was organised by the Econometric Institute and ERIM onMarch 28, Speakers were Rommert Dekker (EUR), Christophe Bérenguer (University of TechnologyTroyes), Carolina Meier-Hirmer (SNCF), and Martin Newby (London City University).

• John Geweke (University of Iowa) presented the Econometric Institute / Princeton University PressLectures Series 2008 from June 10 - 13.

• On June 13 the workshop “Emerging Methods in Bayesian Econometrics” was held with John Gewekeas keynote speaker.

• The workshop “Introduction and Developments on Support Vector Machines and Classification” tookplace on September 12. Speakers were Patrick Groenen (EUR), Evgueni N. Smirnov (MaastrichtUniversity), Georgi Nalbantov (Maastricht University), Sarel Steel (Stellenbosch University), and ThorstenJoachims (Cornell University NY).


N A M E S U P E RV I S O R D AT E O F D E F E N C E T I T L E T H E S I S

Katalin Boer-Sorbán Arie de Bruin 25 January Agent-Based Simulation of Financial

Markets. A Modular, Continuous-Time

Approach

Robin Nicolai Rommert Dekker 27 March Maintenance Models for Systems subject to

Measurable Deterioration

Gerben de Zwart Marno Verbeek 26 June Empirical Studies on Financial Markets:and Dick van Dijk private equity corporate bonds and

emerging markets

Georgi Nalbantov Patrick Groenen 11 September Essays on Some Recent Penalization

Methods with Applications in Finance and

Marketing

Marc Schauten Jaap Spronk and 2 October Valuation, Capital Structure Decisions andDick van Dijk the Cost of Capital

Martijn van der Voort Ton Vorst 24 October Modelling Credit Derivatives

Roger Lord Antoon Pelsser 21 November Efficient Pricing Algorithms for Exotic

Derivatives

Marielle Non Philip Hans Franses 28 November Essays on Consumer Search and Interlocking

and Maarten Janssen Directorates

Table 11: PhD theses at the Department of Econometrics


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5.4 Department of Applied EconomicsResearch in the Department of Applied Economics can be characterised as theoretically inspired appliedresearch. Three main areas of research can be identified:1. Health Economics; within this field the emphasis is on decision analysis within the health care sectorand on the social implications of health care, especially within developing countries.

2.Organisation, Strategy and Entrepreneurship; this research program combines insights from industrialeconomics and organisation theory with a particular emphasis on the consequences and determinantsof entrepreneurship.

3.Urban Economics; within this area there is a special emphasis on issues of urban management. Theresearch is comparative in character and deals with both issues in large metropolitan areas in Europeand in the developing world, especially Africa and Asia.

Education: The department is active in teaching in the bachelor and the master programmes. In thebachelor programme members were involved in teaching Organisation and Strategy in BA 1 (Bachelor)and Methods of Applied Research in BA 2 (in collaboration with the Econometric department). In BA 3teaching was focused on a major in Entrepreneurship and a major in Health Economics. In addition tothis, a number of electives were offered, which were highly appreciated by both Dutch and foreignstudents. At the master level the Program on Entrepreneurship appeared to be attractive for a largenumber of students.

Research: The department is very productive in the publication of scientific articles: like in 2007 also in2008 Professor Han Bleichrodt and Professor Eddy van Doorslaer ranked among the top 40 in the citationtop of ESB (“Economische en Statistische Berichten”). Nine PhD students defended their thesissuccessfully and were awarded the title of doctor (see Table). Of the current PhD students Martijn Burger,Bas Karreman and Ronald Wall are already successful in publishing in highly ranked journals. Ellen vander Poel, PhD student in Health Economics was award an EUR stipend for her research.During the year three seminar series were organised by the department: Applied Economic ResearchSeminar, Health Economic Seminar and the Network Economic Seminar. In addition to this ProfessorPennings was active in the organisation of the Tinbergen Institute PhD Seminar Series.



Arthur Attema Han Bleichrodt 25 January Studies on Intertemporal Preferences with

Applications to Health Economics

Corine Boon Jaap Paauwe and 12 June HRM and Fit Survival of the Fittest?Dianne den Hartog

Martin Klein Harry Commandeur 3 October Poverty Alleviation through Sustainable

Strategic Business Models

Dimitri van Schaik Jaap Spronk en 30 October M&A in JapanJohn Groenewegen

Eric Braun Leo van den Berg 30 October City Marketing Towards an Integrated

Approach

Christoph Hilbert Jaap de Koning and 6 November Unemployment, Wages and the Impact ofGünther Schmid Active Labour Market Policies in a Regional

Perspective

Sandra Phlippen Bert van der Knaap and 6 November Come Close and Co-Create. Proximities inHarry Commandeur Pharmaceutical Innovation Networks

Jolanda Hessels Roy Thurik 13 November International Entrepreneurship: Value

Creation Across National Border

Hugo Erken Roy Thurik 27 November Productivity, R&D and Entrepreneurship

Table 12: PhD theses Department of Applied Economics


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Faculty members who have been in the news:• Professor Leo van den Berg, Professor of Regional and Urban Economics, was present at the officialopening of the Erasmus Center for Urban Management Studies January 2008 by the Mayor ofRotterdam and the Chairman of the Board of Erasmus University.

• Professor Han Bleichrodt, Professor of Health Economics held his inaugural address:The Value of Health.

The use of an explicit value for health is up for discussion in the Netherlands. Wrongly so, thinks

health economist professor Han Bleichrodt. Adhering to a defined limit when awarding

compensation leads to better expenditure of public funds and makes the health care policy

transparent. The calculation methods must become more reliable however, with attention to

quality of life. He explains how this is possible in his inaugural lecture entitled The Value of Health,

which was held on Friday 19 September 2008 at Erasmus University Rotterdam. The Council for

Public Health and Healthcare (RVZ) recently advised that only those treatments which cost less than

€ 80,000 to keep a patient alive in good health for a year longer should be eligible for

reimbursement. Han Bleichrodt thinks this is a good proposal. “Using a value like this is often seen

as a means of making cutbacks, but that is definitely not the case. Good calculations not only take

into account the costs, but also the gains. Expensive operations, such as heart transplants, yield a

great many gains.” Adhering to an explicit value for health, as is done in the United Kingdom and

United States, leads to better expenditure of public funds, says Bleichrodt. Choices made in the

healthcare sector also become more visible. Bleichrodt says the existing methods used by health

economists are not reliable however. This can be easily remedied. In his inaugural lecture he

demonstrates how we can value health in a reliable manner, while devoting explicit attention to

quality of life.

• Professor Bert van der Knaap, Professor of Economic Geography was appointed as visiting professor atthe University of Hunan in Changsha (China).In March 2008 he was appointed as a member of theScientific Advisory Board of the Netherlands Environmental Assessment Agency.

• Professor Enrico Pennings, was appointed in September as Endowed Professor on the chair ofIndustrial Economics through the Vereniging Trustfonds EUR. Enrico Pennings obtained his PhD in 1998(cum laude) from the Erasmus University Rotterdam with a thesis entitled ‘Real Options and ManagerialDecision Making’. Since 2004 he has worked at the Erasmus School of Economics, successively asAssistant Professor and Associate Professor of Economics and Business / Strategy. He became a Fellow ofthe Tinbergen research school in 2005 and a Member of the ERIM research school in 2006. From 1999through 2001 Enrico Pennings was an assistant professor at the University Pompeu Fabra (Barcelona)and from 2001 through 2004 he was an IGIER Fellow and an assistant professor at the IGIER-BocconiUniversity (Milano). In April 2008 he was appointed as the area editor of the Journal Technovation.

• Professor Roy Thurik, Professor of Small Business Economics and Entrepreneurship was successful inthe acquisition of a major grant (total of 12 million euros) in entrepreneurship to develop teaching inentrepreneurship in the Holland Program on Entrepreneurship (HOPE) in collaboration with theTechnical University of Delft and the University of Leiden. In November 2008 Thurik was appointed as(third) fellow of the European Council for Small Business and Entrepreneurship.

• Professor Justus Veenman, Professor of Economic Sociology delivered the annual 'Rotterdam-lecture'on Labour Market Discrimination, conducted a lecture on 'Investment in Education' at the annualAlumni meeting, and gave several interviews in national newspapers (among others about wagedevelopment in the Netherlands, and unemployed Moroccans in Amsterdam).


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Professor Justus Veenman is convinced that various population groups in a city relate to each other

better. The professor of social economics shared his optimism yesterday evening during a lecture in

the Rotterdam Central Library. The topic of the lecture, ‘Visible and Invisible Discrimination’, was

connected to Veenman’s field of expertise: inequality at work. The annual Rotterdam lecture is

organised by a number of groups including Erasmus University Rotterdam, the Student Priesthood,

the library and the antidiscriminatory agency.

In 2003 Justus Veenman gave the very first Rotterdam Lecture at the Erasmus University. His

message at the time was that ethnic minorities are not a threat, but rather an opportunity for the

city. In recent years, however, this concept received little support, he concurs. “We point mostly to

the cultural differences and perceive these as a threat to Dutch culture, but we hardly focus on the

social and economic aspects. In fact, we do very much need young people from ethnic minorities.”

5.5 Erasmus Research Institute of ManagementERIM has seen a productive and successful year in 2008. The aim of ERIM is to conduct scientific researchthat enables organisations to assess and improve their business processes in order to perform in aprofitable and responsible way. To do so, ERIM strives to carry out first rate research in management andoffers an advanced doctoral programme in this area. The institute is a collaboration of the RotterdamSchool of Management (RSM) and the Erasmus School of Economics and is accredited by the KNAW since1999.In 2008, several indicators show that ERIM research is of international top quality. For example, theexternally conducted CTWS 2008 study judged the academic research of ERIM to have strong academicimpact in the most recent period of 1999-2006; ERIM belongs to the Top 3 management institutes inEurope; the citation impact of all five ERIM programmes is above the world average; and the relativeposition of ERIM has improved. Also, ERIM is the European institute in management research with thehighest academic output. The effort for first rate research is also reflected in a consolidation of 95publications in international academic top journals in 2008 on a total of 223 international academicarticles. Another sign of the growing interest in ERIM research is the increasing number of downloads ofERIM working papers: in 2008: the Social Science Research Network (SSRN) ranked ERIM number 1. Themembers of ERIM conducting this research also has been growing steadily: at the end of December 2008,ERIM had 197 fellows and (associate) members and 111 PhD candidates, an increase of respectively 3%and 6% with respect to December 2007. About two-thirds belong to RSM and one-third to ESE.The second important part of ERIM is its doctoral programme. It consists of two parts: a two-year MPhilresearch master and a three-year or four-year PhD trajectory. The selection criteria for candidates for bothparts are tough as ERIM only selects top candidates. In 2008, 8 new candidates (of which 6 areinternational) enrolled in the MPhil programme and 25 candidates (of which 17 are international) in thePhD programme. A total of 12 MPhil candidates graduated in 2008 and a record number of 36 ERIM PhDswere delivered. After graduation, about one-third of the PhDs change to business and two-thirds stay inacademia. Amongst them, there have been placements in international top business schools, such asWarwick, HEC, IMD, Essec and Melbourne Business School.ERIM supports its members in several manners. Since 2007 an important strategic goal of ERIM is toimprove success in external fund raising such as in the European programmes FP7 and at ERC. ERIMprovides sophisticated assistance through its Director Strategic Projects and Alliances. As a result, in 2008a major boost in grant raising activity was achieved and examples of successful projects were HOPE (1million), Delia (Smidts, 300K) and Integrity (van Nunen, 300K). In addition, grant workshops wereorganised to assist members in acquiring research grants. Several young talents were successful inobtaining prestigious funding: Wilco van den Heuvel and Erik Kole received an NWO-Veni grant, Matthijsvan Dijk an NWO-Vidi grant, and Elvira Sojli an EU-Marie Curie grant. Another way of supporting ERIMmembers is by organising ERIM seminars and events. In 2008, there were more than 200 of these events.These seminars and workshops facilitate exchange and collaboration with international top scholars.ERIM also has opened 13 websites, known as academic centres, on specific research expertise of ERIMmembers. Relevant ESE examples of academic centres are: Customer Integration, Entrepreneurship


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Research, Closed Loop Supply Chains, the Institute for Life Sciences Business Economics (iLSBE), and theErasmus Centre for Urban Management Studies (ECUMS).

5.6 Tinbergen InstituteTinbergen Institute (TI) is one of the leading graduate schools in economics and finance in theNetherlands and Europe. TI was founded by the economics departments of the Erasmus UniversityRotterdam (EUR), the University of Amsterdam (UvA), and the VU University Amsterdam (VU) in 1987.Tinbergen Institute offers a graduate programme (research master or MPhil) for excellent selectedstudents, with two tracks: one track in economics and one track in finance. Both tracks offer two years ofgraduate course work and are connected to three-year PhD positions. Currently, some 100 researchfellows and 150 graduate students are participating in Tinbergen Institute. TI alumni (over 400!) can befound working for universities and international companies all over the world.

The TI lecture 2008 was given by Prof. Pierre-André Chiappori (Columbia University) on Family Economics.A large audience of TI students and external students participated in the three days of lectures ontheoretical and empirical analysis of household and family formation.

The TI conference 2008 was focused on micro econometric analyses of causal relations in development,education, family, health and labour economics. The organisers of the conference secured funding fromtwo ministries, the DNB and CPB.

In August the Tinbergen Institute submitted a request for extending the accreditation of its researchmaster program. The request was discussed in November with a KNAW/NVAO committee. The formaldecision was due before January 1, but has been postponed. Informally, however, TI has been assured thatthe committee’s decision will be in favour of re-accreditation.

In July of this year, the Duisenberg School of Finance launched 2 MSc programmes and sponsored thefinance track in the TI research master programme as well. The Duisenberg School is now located onefloor above TI’s Amsterdam location. If the cooperation proves to be successful, the intention is to movejointly in 2013 to the brand new VU campus in Amsterdam Zuid.

In September 2008, 28 new students started the MPhil programme, 7 of them in the finance track. Thefinance track is a new track in the MPhil programme, organised by the Tinbergen Institute and sponsoredby the Duisenberg School of Finance.In 2008, 28 PhD students affiliated with TI defended their PhD theses; this number is exceptionally highwhen compared to earlier years.

In November TI had a festive MPhil graduation ceremony: 22 students of the 2006 school year graduated,3 of them cum laude. 21 of these graduates are now appointed in PhD positions at one of the economicsdepartments participating in the Tinbergen Institute.

In 2008, NWO (Netherlands Organization of Research) launched a pilot for a funding programme that willfocus on Graduate Schools and Research Schools. Objective of the programme is to create greaterfreedom for prospective PhD students and allow them (among other things) to draft their own researchproposal. The Tinbergen Institute fits very well into the objectives of this programme and will apply for agrant (800,000 €).

As of March 1, Professor Maarten Janssen resigned as general director of the Tinbergen Institute;Professor Herman K. van Dijk has taken over his position. Professor Jaap Abbring, director of graduatestudies, left TI as of September 1. He is succeeded by Professor Eric Plug and Professor André Lucas.Professor Lucas will focus specially on the finance track of the research master programme.


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6 . E d u c a t i o n

After a pilot in 2006-2007 within our International Bachelor Programme in Economics and BusinessEconomics (IBEB), the implementation of a bimester system, a block system for all programmes, was themain concern for the Education Board in 2007-2008. The bimester system (officially called Jaarplansysteem

in Dutch) was developed further in 2008-2009.

With an emphasis on the bachelor 1 and bachelor 2, the bimester system intends to be a significantelement in the continuous efforts to improve the quality of the education programmes. The system isdesigned to challenge students to intensify their study efforts and study speed. Small scale tutorials, lessresits, concentration on two or three courses at a time are the main elements in the system. During theimplementation phase, monitoring the effects of the system will be of utmost importance. In the autumnof 2008 a main evaluation was done. First-year bachelor’s students were asked by means of aquestionnaire about their opinion of the ‘Jaarplansysteem’. Teachers were interviewed. Different groupsof teaching, acting on different educational levels were asked to give their opinion in special organisedmeetings. Information from the management information system was also used for this evaluation. Theresults of the evaluation are presented to the Management Team of the ESE in the beginning of 2009. Asa consequence, certain aspects in the ‘Jaarplansysteem’ will be adjusted.

Besides the implementation of the bimester system, various other developments characterised theeducational year 2008, as is shown in the highlights mentioned below. All together, further improving thequality as well as the attractiveness of our programmes for students from abroad and from theNetherlands was a main issue in 2008, as it will be in de forthcoming years.

6.1 Education management and programmesThe Education Board supervises the Education Service Centre (ESC) and is responsible for the Bachelor andMaster programmes:

• BSc in Economics & Business (in Dutch)

• BSc in International Economics & Business Economics (IBEB)

• BSc in Economics & Taxation (in Dutch)

• BSc in Econometrics & Management Science (in Dutch)

• BSc in Economics & Informatics (in Dutch)

• Mr.Drs: Combined Study programme for Economics & Law (in Dutch).

• MSc in Economics & Business, with specialisations in:

• Accounting, Auditing & Control

• Accounting and Finance

• Economics of Markets, Organisations and Policy

• Entrepreneurship, Strategy and Organisation Economics

• Financial Economics

• International Economics and Business Studies

• Marketing

• Urban, Port & Transport Economics

• MSc in Econometrics & Management Science with specialisations in:

• Econometrics

• Operations Research and Quantitative Logistics

• Quantitative Finance

• Quantitative Marketing

• MSc in Economics & Informatics with specialisations in:

• Computational Economics

• Economics and ICT

• MSc in Economics & Taxation (in Dutch)


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Education Board in 2008Professor Ivo Arnold, Programme DirectorWouter van den Brink, MSc, Senior Policy Officer EducationRob van der Wal, MSc, RA, Programme manager and Coordinator Economics & Business; as of Octoberacting Coordinator Economics & InformaticsEelco van Asperen, MSc, until October Coordinator Economics & InformaticsProfessor Richard Paap, Coordinator Econometrics & Management ScienceMarcel Smeets, MSc, Coordinator Economics & TaxationJessica Bogas MSc, Coordinator IBEB, as of June 2008 Aleksandra Hohlaceva MScElaine Rouwet, student-member Economics & Business, as of 1 December 2008 Nadji BilikArthur de Vreede, student-member Econometrics & Management ScienceM. Mulders, student-member Economics & Informatics, until summer 2008Aleksandra Hohlaceva student-member IBEB, as of September Eric Berning

6.2 Highlights in 2008Lecturer of the Year Student Award 2007-2008Between May and July 2008, ESE students had the opportunity to cast their vote for their most favouritelecturer of the year 2007-2008. The actual voting took place on-line and students had a choice of 12candidates, nominated by the Student Consultative Body (SVO). The SVO, throughout the year, consultedthe education evaluations and took students’ opinions into consideration. Lecturers consider anomination as a sign of appreciation for their teaching efforts. Students had to carefully motivate thecriteria for selecting their most popular lecturer. Ultimately, 5 lecturers were nominated:

• Jan Brinkhuis – Dept. of Econometrics

• Benoît Crutzen – Dept. of Economics

• Josse Delfgaauw – Dept. of Economics

• Henry Martyn Mulder – Dept. of Econometrics

• Michel van de Velden – Dept. of Econometrics

On November 6 Dr Josse Delfgaauw, who ultimately received the most votes, was declared Lecturer of theYear 2007/2008 in the presence of more than 700 students and colleagues. Josse Delfgaauw was chosenbecause of his teaching method, especially his ability to make abstract material accessible for students.

The title ESE Top lecturer 2007 awarded to two lecture teams

The title ‘ESE Top Lecturer 2007’ was awarded on February 21, 2008 to two teams of lecturers in the fieldsof ‘International Economics’ and ‘Economics & Taxation’. The lecturers in both teams earned this titlebecause of the high level of cooperation within the team, the enthusiasm with which innovations werecarried out and the excellent scores in the education evaluations by all members of the team.

The Bachelor Honours Class (BHC) attracts renowned guest speakersFor the last seven years, the Bachelor Honours Class (BHC), organised by Liesbeth Noordegraaf-EelensMSc, has been a feature within the regular education programme and is designed to provide motivatedstudents of economics and econometrics with some extra challenges in addition to the regular curriculum.Experts in the fields of business and higher education present interactive lectures, discussions aboutvarious issues are triggered, and scientific articles are being read as well as written. The BHC programmestarts in the first Bachelor year and covers two full years. Access to the programme is restricted. Toguarantee its small-scale framework and exclusivity, students are selected on their performance withinthe first part of their study. Commitment and active participation are primary requirements to completethe BHC programme successfully. The programme is divided into three segments. In each segment asubject is scrutinised in detail. Subjects can vary from elections to privatisation to calculating the cost ofhuman life.In 2008 several interesting guest speakers were invited including Paul van Vroonhoven, Professor KoColijn and Marc Schuilenburg. The main subject of the BHC was: Decision Making Under Uncertainty. OnSeptember 12 the Bachelor Honours Class concluded its two year programme with a prestigious congressin which students presented their own papers. The three top essayists received prizes, made available bythe EUR Trust Fund.


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6.3 Bachelor programmesThe intake in the bachelor programmes during the period 2002-2008 is as follows (first enrolment for thisprogramme at the ESE – based on OSIRIS):

P R O G R A M M E 0 2 - 0 3 0 3 - 0 4 0 4 - 0 5 0 5 - 0 6 0 6 - 0 7 0 7 - 0 8 0 8 - 0 9

Econometrics & Management Science 60 62 84 88 83 110 133

Economics & Business 463 421 455 458 417 470 504

IBEB 128 122 126

Economics & Taxation 29 38 25 33 33 60

Economics & Informatics 81 70 56 41 45 44 52

Total 604 582 633 612 706 779 875

Table 13: Intake in bachelor programmes according to years (source: EIS November 2008)

The total intake for the Academic Year 2008-2009 increased by 12% in comparison to the Academic Year2007-2008. The Econometrics & Management Science and Economics & Business programmes in particularwitnessed a strong increase.

Intake from Higher Vocational EducationThe intake from the Higher Vocational Education (in Dutch: ‘HBO’) in 2008-2009 of full-time studentsshows a strong decrease in comparison to 2007-2008. A possible explanation for this decrease could bethe change of policy at the ESE. Commencing the Academic Year 2008-2009, the ESE demanded far morestringent requirements for HBO students, for example a passing grade on a test in mathematics, beforegetting an Admission Statement. Many Higher Vocational Education students, who indeed did the test,failed and were not admitted.

P R O G R A M M E 0 7 - 0 8 0 8 - 0 9

Econometrics & Management Science 30 43

Economics & Business 224 70

Economics & Taxation 16 11

Economics & Informatics 25 13

Total 295 137

Table 14: Intake pre-master students according to years (source: EIS November 2008)

MinorsStarting in September 2008, all new third-year EUR bachelor’s students (with the exception of studentstaking degrees in Medicine), who earned 60 ects in their Bachelor's education as of 1 April 2008 wererequired to take a minor – defined as a coherent combination of courses – as a mandatory part of theirstudies. The ESE offered both broadening minors (a minor to obtain knowledge about new subject, abroadening minor can be taken at any school of the EUR) and deepening minors (which can be taken onlyas a specialisation within a bachelor’s programme) in the first bimester of the academic year.


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F O R E S E F O R N O N - E S E

S T U D E N T S S T U D E N T S

- Computer Science (in English and in Dutch) �* �- Corporate Governance (only in English) � �- Development Economics (only in English) � �- Empirical research methods in economics and business (only in English) � �- Entrepreneurship (only in English) � �- Urban studies (only in English) � �- Ondernemen en belastingen (only in Dutch) � �

*) Not for students Economics and Informatics and students Econometrics

Table 15: Broadening minors Economics & Business Economics and IBEB

There was only one deepening minor: ‘Ondernemen en belastingen’, which could only be taken bystudents of Economics & Taxation.

6.4 Master programmesThe total amount of students pursuing an MSc education in 2008-2009 shows a small decrease incomparison to 2007-2008.

P R O G R A M M E 0 4 - 0 5 0 5 - 0 6 0 6 - 0 7 0 7 - 0 8 0 8 - 0 9

Econometrics & Management Science 44 59 54 61 80

Economics & Business 383 527 505 566 563

Economics & Taxation 38 28 31 43 41

Economics & Informatics 64 57 51 54 35

Mphil in Business Research (ERIM) 11 14 13 14 8

Mphil in Economics (TI) 4 6 5 7 6

Total 544 691 659 745 733

Table 16: Intake MSc students according to years (source: EIS November 2008)

The intake at the various master programmes can be specified in more detail according to origin of thestudent (e.g., ‘own’ student, pre-master student, foreign student and/or students coming from other Dutchuniversities). Table 17 gives more insight.


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M A S T E R I N TA K E A C C O R D I N G T O “ O R I G I N ” 0 5 - 0 6 0 6 - 0 7 0 7 - 0 8 0 8 - 0 9

Intake ESE Bachelor 359 376 401 388

Econometrics & Management Science 37 41 45 54

Economics & Business 265 273 287 287

Economics & Taxation 23 23 34 31

Economics & Informatics 34 39 35 16

Intake pre-master student 165 148 155 143





Intake via HBO+ (pre-master at HBO) 40 29 35 37

Econometrics & Management Science


Economics & Taxation 1

Economics & Informatics

Admitted with a preliminary foreign education 67 51 64 108



Economics & Taxation

Economics & Informatics 2 1 3

Admitted with a preliminary Dutch education 40 37 69 43

Econometrics & Management Science 7 3 2


Economics & Taxation 1

Economics & Informatics 1 1

Total excluding Research Masters 671 641 724 719





Research Masters 20 18 21 14

Mphil in Business Research (ERIM) 14 13 14 8

Mphil in Economics (TI) 6 5 7 6

TOTAL 691 659 745 733

Table 17: Master students’ intake according to “origin” per academic year.

The 2008-2009 intake for masters programmes in total shows a small decrease (-2%). It is good to see thatthe number of students with a foreign education increases greatly (+69%) and this fits perfectly into theinternationalisation policy of the ESE. Most of the admitted students with a preliminary foreign educationcome from Greece, followed by students from Bulgary, Germany, Poland, Turkey and Surinam. There are alot of countries from which only a (very) few students were admitted. To give an idea: the ESEaccommodates students from more than 60 different nationalities.

Further distinction can be made according to specific master programmes students attend. The followingtable gives an indication of intake per master programme as known at November 1, 2008.


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0 5 - 0 6 0 6 - 0 7 0 7 - 0 8 0 8 - 0 9

Master Econometrics & Management Science 59 54 61 80

Econometrics 8 5 8 5

Operations Research and Quantitative Logistics 7 12 11 13

Quantitative Finance 31 30 37 51

Quantitative Marketing 12 6 5 10

Free Master 1 1 1

Master Economics & Business 488 478 528 506

Accounting and Finance 45 24 61 37

Accounting, Auditing & Control 74 101 78 83

Economics of Markets, Organisations and Policy 37 25 27 24

Entrepreneurship, Strategy and Organisation Economics 63 62 71 63

Financial Economics 90 98 130 124

International Economics and Business Studies 42 52 46 51

Marketing 97 86 87 70

Urban, Port & Transport Economics 35 24 27 34

Free Master 5 6 1 20

Master Economics & Business (part-time) 39 27 38 57

Accounting and Finance 11 13 19 15

Accounting, Auditing & Control 20 11 16 24

Organisation & Marketing 8

Free Master 3 3 18

Master Economics & Taxation 28 31 43 41


Master Economics & Informatics 57 51 54 35

Computational Economics 13 4 12 10

Economics and ICT 44 47 42 23

Free Master 2

Research Masters 20 18 21 14

Mphil in Business Research (ERIM) 14 13 14 8

Mphil in Economics (TI) 6 5 7 6

Total 691 659 745 733

Table 18: Intake master students for master specialisations per academic year.

In the academic year 2008-2009, we see a lot of students choosing for a Free Master. A possibleexplanation for the huge increase of student category is the elimination of the former ‘Doctoraal’.Commencing with the Academic Year 2008-2009, the ESE has discontinued the educational title ‘Drs’.Fulltime as well as part-time doctoral students have received the opportunity until September 1, 2008 tofinalise their programme. This resulted in students making a switch from this programme to a FreeMaster’s programme. The increase of students following a Master’s Programme in Econometrics is mostprobably the result of the increase of bachelor’s students in the Academic Year 2004-2005. Intake for theremainder of the programmes, including those with a low intake, remained more or less stable.


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6.5 Degrees granted in 2008During the Academic Years 2005-2006, 2006-2007 and 2007-2008 the following numbers of degrees wereconferred, detailed according to education and level:

E D U C AT I O N P H A S E 0 5 - 0 6 0 6 - 0 7 0 7 - 0 8

Economics & Business Total 839 826 981

Bachelor 341 333 368

Master 338 404 502

Doctoraal 160 89 111

IBEB Total 25 16

Bachelor 25 16

Master

Doctoraal

Economics & Taxation Total 75 63 83

Bachelor 42 36 39

Master 27 24 37

Doctoraal 6 3 7

Econometrics & Management Science Total 108 101 113

Bachelor 60 54 57

Master 39 46 45

Doctoraal 9 1 11

Econometrics & Informatics Total 91 126 79

Bachelor 48 68 22

Master 32 55 56

Doctoraal 11 3 1

Mphil in Economics Totaal 1 4 6

Master 1 4 6

Total Bachelor 491 516 501

Master 437 533 646

Doctoraal 186 96 130

Total 1114 1145 1277

Table 19: Degrees conferred in time

Over time, it is noticeable that the total number of diplomas, especially those of master diplomas, is onthe increase, whereas the number of ‘doctoraal’ degrees (Drs), logically, decreases.


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6.6 Ideas and complaints mailboxESE is very interested to hear what students think of the education and educational facilities provided.Opinions and suggestions, but also criticism and complaints can contribute to monitoring and, ifnecessary, improving the quality of education and educational facilities. For this purpose, theManagement Team of the ESE has introduced the Ideas and Complaints Mailbox for ESE students. Thecommittee taking care of this mailbox consists of a student advisor, a member of the Education ServiceCentre staff and a student member of the management office.

I D E A S A N D C O M P L A I N T S R E C E I V E D 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8

45 71 95 48

Table 20: Ideas and complaints according to years

In 2008, remarkably fewer complaints were handled by the Idea and Complaints Box of ESE. Of the 48complaints in total, 16 (2007: 50) complaints were related to exams, in particular about exceeding theterm for marking exams. These complaints were forwarded to the programme manager and were allsolved satisfactorily. Other major complaints (16; 2007: 35) were received about the exam schedule. Thesereactions were forwarded to the schedule coordinator, although for the current academic year nothingcould be changed. Other reactions were related to suggestions for improvement of SIN-Online and theoverall infrastructure of the School, IT wise (3). One complaint regarding a teacher was dealt with by theexam committee.

The Ideas and Complaints Box, which is different than the official complaint committee, consisted during2008 of• Olav Bollen MSc (study advisor)• Harry Post MSc and• Elaine Rouwet (student member of the Education Management).

6.7 ESE Complaints CommitteeThe ESE Complaints Committee was established on September 1, 2005 with the purpose of settlingindividual complaints, submitted in writing. These complaints can be submitted by and against a memberof the School’s community. The commission consists of the following people:• Professor Patrick Groenen (chairperson)• Wouter van den Brink, MSc• Maarten Dorresteijn (student member)Substitute members:• Dr Christiaan Heij• Professor Robert Dur• Elaine Rouwet, MSc• Secretary: Nelly Voogd

During 2008 the commission did not receive any complaints.


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6.8 Education evaluationsThe student education evaluations take place via a questionnaire option in SIN-Online in the followingmanner:• At the start of each bimester an e-mail is sent to the lecturers in charge of individual courses askingthem for information relating to people teaching within this particular course.

• Based on the overall response received, an education evaluation questionnaire relating to thatparticular course is developed on SIN-Online. In cases where a response was never received, theinformation relating to teaching staff is taken straight from the student guides. Education evaluationsopen during the last two weeks of each bimester and close one week after the exam period.

• After the closure date, the output file of each subject is saved. Out of these Excel files, summaries areautomatically produced in either PDF format (for closed questions) or doc-format (for open questions).These summaries are subsequently sent to the relevant lecturers as well as to the Dean and to theDirectors of the Departments.

• The average score per course/question is saved in an Access database in which the lecturers are coded.Because of this coding, this particular step in the process needs to be carefully checked.

• Finally, analyses are executed within the data base using an Excel programme. The final report isdispersed amongst the Dean and the Department Directors.

Table 21 shows the amount of subjects that received response following each evaluation. The averageresponse percentage is 30%.

B I M E S T E R C O U R S E S R E S P O N S E AV E R A G E

R AT E S C O R E

1 58 0.34 3.80

2 64 0.27 3.80

3 60 0.31 3.93

4 55 0.31 3.88

5 19 0.25 3.69

Total 256 0.30 3.84

Table 21: Average score on education evaluations academic year 2007-2008

At the ESE the following classification scores were defined for the academic staff (this for the benefit ofassessment interviews):

U N S AT I S FA C T O RY M O D E R AT E G O O D V E RY G O O D

BA1 and BA2 [0, 3] [3, 3.5] [3.5, 4] [4, 5]

BA3 and MSc [0, 3.25] [3.25, 3.75] [3.75, 4.25] [4.25, 5]

Table 22: Classification scores for academic staff in the assessment interviews

The score is the average score relating to the fact that “the lecturer has explained the subject in a veryclear manner” as well as “the lecturer is making students enthusiastic about the subject”. In total for theacademic year 2007-2008, 384 average scores for the academic staff are available (for teachers of which 5students or more have expressed their opinion). Table 23 illustrates the average scores.


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U N S AT I S FA C T O RY % M O D E R AT E % G O O D % V E RY G O O D % T O TA L

BSc 1 5 10 6 13 24 50 13 27 48

BSc 2 6 7 19 22 29 34 32 37 86

BSc 3 9 9 24 24 37 37 31 31 101

MSc 10 7 30 20 64 43 45 45 149

Total 30 8 79 21 154 40 121 32 384

06-07 41 11 119 31 128 33 100 26 388

Table 23: Average score academic year 2007-2008

From table 23 we learn that the average scores in comparison to 2006-2007 are better. From the scores wecan conclude that in most of the courses, our teachers do a good job. As we saw earlier, some teachersoutperform others. To stimulate teaching, these teachers are rewarded; the other teachers are stimulatedto improve their average scores, using the ‘better’ performers as a kind of a benchmark.

In ‘Unsatisfactory’ cases, the Education Board consults with the lecturer and/or director of the particulardepartment about measures that will lead to improvement of the lecturer score. In extreme cases, theEducation Management can request the director of the department to switch to another lecturer.


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6.9 Advice to LeaveTo be able to continue their study, first-year students must score a sufficient grade for at least 40 ECTS ofthe total of 60 ECTS in their first year. If they score less than 40 ECTS, students have to stop their study.Students scoring more than 40 ECTS, but less than 60 ECTS, are allowed to continue their studyconditionally: they have to score the remainder of their ECTS in their second year. If not, they still will beexcluded. Table 24 contains information about the Advice to Leave of students having started their studySeptember 2007.

1 S T Y E A R T O TA L P O S I T I V E C O N D I T I O N A L LY P E R S O N A L N E G AT I V E % N E G AT I V E

S T U D E N T S P O S I T I V E C I R C U M S TA N C E S

E&BE 396 172 88 5 131 33.1

IBEB 112 48 32 1 31 27.7

E&T 28 6 5 0 17 60.7

E & MS 98 45 27 1 25 25.5

E & I 37 15 7 1 14 37.8

Total 671 286 159 8 218 32.5

Table 24: Advice to Leave for students started in September 2007

Compared to the other scores, the score for Economics & Taxation is poor. These students take the samecourses as students of Economics & Business Economics. It is therefore difficult to find a reason for thepoor score. IBEB students and students of Econometrics and Management Science score - as usual – betterthan others.

Almost all the students (≈ 90%) with conditional positive advice were able to complete in their secondyear the first year courses in which they scored an unsatisfactory result, meaning that they were able tocontinue their education at the ESE (see table 25).

2 N D Y E A R T O TA L P O S I T I V E C O N D I T I O N A L LY P E R S O N A L N E G AT I V E % N E G AT I V E

S T U D E N T S P O S I T I V E C I R C U M S TA N C E S

E & BE 148 130 4 14 9.5

IBEB 45 41 1 3 6.7

E & T 13 13 0 0.0

E & MS 32 24 1 7 21.9

E & I 9 7 2 22.2

Total 247 215 6 26 10.5

Table 25: Advice to Leave for students started September 2006, conditionally authorised to follow BA2

courses

There is no significant difference between the scores presented in tables 24 and 25 and the comparablescores one year earlier.

As part of the Advice to Leave-procedure, first-year’s students who were inactive (defined as havingmissed most of the tutorials in the first bimester) and no-show students (students who did not attend anytutorial at all in the first bimester) were invited for a talk about the consequences of their behaviour.Only 11 students accepted the invitation and had a talk with one of the studyadvisors late October 2008.


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7 . S t u d e n t A s s o c i a t i o n sThere are quite a number of study associations for students studying for their BSc or MSc at the ErasmusSchool of Economics. The biggest one is the EFR, the student association of the Erasmus School ofEconomics of Rotterdam, for students studying economics in general. This association encompasses anumber of specialised associations for students who started their Master specialisation. For the morespecialised studies at the ESE there are a few independent associations: The Econometric StudentAssociation for students studying Econometrics and Management Science, the ‘Rotterdamse FiscalistenVereniging Christiaanse-Taxateur’ for students studying Economics & Taxation, “In Duplo” for studentsstudying both Economics & Business as well as Dutch Law and “Vrisbi” for students studying Economics &Informatics.

7.1 EFRThe Student Association of the Erasmus School of Economics Rotterdam (in Dutch: EconomischeFaculteitsvereniging, EFR)) with around 3900 members, is one of the most active and professional studentassociation of the Netherlands. Its aim is to bridge the gap between theory and practice. Over hundredcommittee members of the EFR organise various activities for all economy oriented students throughoutthe academic year. The activities are organised in order to contribute to the extracurricular self-development of the students.

During the EFR Business Week, which takes place each spring, different aspects of a central theme aretreated by means of lectures, master classes, workshops and panel discussions. Internationally renownedspeakers from the business world, politics and science present their ideas and discuss issues around thecentral theme. The main strength of the EFR Business Week is the integration of theory and practice byfacilitating contact between students and inspiring individuals from their future working environment. Inaddition, the EFR Business Week has a distinguished international reputation, making sure that it is ableto offer the best speakers and attract a very large audience each year. The EFR Business Week has thehonour of welcoming many wellknown speakers.

2008 became the year of ‘Breaking Barriers’, also the theme of the EFR Business Week 2008. Supported bya large group of prominent speakers, such as Jan Kees de Jager (Dutch State Secretary for Finance),Michel Tilmant (former CEO of the ING Group), Professor Eric Maskin (Nobel Prize winner in Economics in2007), Frans Weisglas (former chairman of the Dutch Lower Chamber), Mark Rutte (VVD party leader) andAlexander Rinnooy Kan (SER chairman), the EFR Business Week initiated public discussions betweenstudents and leading global businessmen, politicians and academics about the economic crisis at ourdoorstep. The CEO Awards, a prominent part of the EFR Business Week, was broadcasted live on variousnational press channels.

Before the business week, the traditional EFR Ski Trip was held in January 2008; this was only a monthaway from the kick-off to what would become the largest and most successful Erasmus Recruitment Daysof all times. 120 Companies and 1800 participating students were no indication of what promised to bethe start a vibrant year. The third anniversary edition of the EuroTour exchange programme in May 2008,organised in cooperation with the University of St. Gallen, briefly diverted the attention of the EFR fromthis topic. A successful combination of business, pleasure, culture and education proved to be popularamongst students at the Erasmus School of Economics and led to a record number of applications. Also inMay 2008, a special partnership with the Dance 4 Life charity organisation initiated the second EFRCharity Game. After its great success, UNICEF offered their partnership for the following event inNovember 2008. During both Charity Games, student consultants worked on a real life case undersupervision of expert strategists from top consultancy firms. The prize money was donated to charity.

In September 2008 a new EFR-Board was inaugurated. With a strong focus on internationalisation,business networking and the newly introduced EFR-Academy it introduced a balanced and selectiveportfolio of educational, social and career related events to ‘Meet your Ambition’.


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7.2 AEclipse student associationThe AEclipse student association is an association that organises activities for students in the Departmentof Economics. AEclipse tries to create a linkage between theory and practice, student and professor,student and career opportunities and of course students and their fellow students.

In 2007-2008 several activities took place:• City trip to GenevaVisiting the ILO, UNCTAD and the city, including presentations and a seminar about wastemanagement.

• International Research Project Russia: Sustainable Economic Growth.Research on economic growth in Russia, visiting several companies in Russia who enable trade with orproduction in Russia. A journey to Moscow and St. Petersburg in Russia, completing the tour in Riga,Latvia.

• Erasmus Advice Project 2008: Industry and Agriculture Policy, eight groups of two students, writing theirbachelor thesis, and competing to win the Professor Lambers Prize.

Our annual activities, such as company visits, social drinks and dinner were open to all our members. TheAElementair, our quarterly magazine, was distributed nationwide to all general economists.

7.3 EUREOSEUREOS – The Study Association for Entrepreneurship, Organisation and Strategy of the ErasmusUniversity Rotterdam - has three areas of expertise: entrepreneurship, organization and strategy.Throughout the year, EUREOS organises multiple activities, which focus on one of these areas ofexpertise.

ENTREPRENEURSHIP - The Entrepreneurship Cycle is a unique event focusing on encouragingentrepreneurship among students. Students are offered the opportunity to meet successfulentrepreneurs, learn what it takes to start a business, what entrepreneurship across borders means, butmore important; experience what it is to be an entrepreneur and to develop an idea into a completebusiness plan. Previous participants have been ABN Amro, Area010, Yes!Delft, BDO, Chamber ofCommerce and Shell.

ORGANISATION – For one day at the end of September, EUREOS, together with the department of HRMof the RSM, organises the HR Master Event. The purpose of this event is to give all HR Master students theopportunity to get acquainted with their career possibilities. HR students from all Dutch universities areapproached and invited to take part in this event. In the course of an interactive afternoon, consisting ofcompany presentations, workshops and interviews, students are provided with the opportunity to meetfuture employers and vision the practical side of HR. The strength of this event is the diversity ofparticipating companies, such as Philips, Stork, Haygroup, Randstad, Raymakers vd Bruggen, Accentureand NVP Young Professionals.

STRATEGY - During seven days in November and December, the Consultancy Cycle takes place at the mostunique location of Rotterdam, the Euromast. For over 10 years, this has been the largest StrategyConsultancy event in the Netherlands. The Consultancy Cycle is a unique opportunity for top students tomeet the largest strategy consultancy offices in the world, experience their unique culture and work onstrategic cases together with consultants. Previous participating companies have been McKinsey, Bain &Company, Arthur D. Little, Roland Berger Strategy Consultants, Monitor Group, Nolan Norton & Co,Boston Consulting Group, A.T. Kearney, OC&C Strategy Consultants and Quintel Strategy Consultants.

Besides the areas of expertise EUREOS organises an International Scientific Research Project (ISRP), MasterInhouse Classes, Master Thesis Contest and social drinks.


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7.4 Econometric Student Association RotterdamThe Econometric Student Association Rotterdam (In Dutch: Econometrisch Dispuut) consists of over 550students who are studying econometrics and management science at the Erasmus University Rotterdam.The aim of the association is to close the gap between theory and practice by organising all kinds of socialand formal activities. The highlights of the past college year included our 3-week study trip to Japanwhere we went with 30 students to discover the culture and the business opportunities in Japan.Furthermore, we organised an Investment Banking Project (IBP). The IBP will take eighteen highlymotivated students for about one week to London, the financial heart of Europe. In this week theparticipants will attend presentations and case studies by several leading investment banks. There are alsoinformal dinners and lunches with the bank employees.

In November, together with six companies, the Case Choice in the Faculty Club of the Erasmus Universitywas organised, a recruitment event for all the different fields of study in econometrics. During the yeardifferent companies were visited during an in-house day to have a better look on what these companiesare doing.

Once a month meetings were organised with other econometric study associations in the Netherlands andtogether a couple of activities such as the National Econometricians Day were arranged.

The Econometric Student Association also published four editions of our Quarterly ‘Estimator’ with asummary of all our activities, and four editions of our scientific Magazine ‘Medium for EconometricApplications’ (MET) as well as an almanac with all the information of our members and a report of thehighlights of the past academic year.

7.5 Financial Study Association RotterdamFrom a financial point of view, 2008 was disastrous. What started as a year packed with positive forecasts,ended as the year that will be known as the year of the Credit Crunch. The Financial Study AssociationRotterdam (FSR) is closely related to the financial world, but in contrast to the industry, it had a verysuccessful year.

Highlights of the past academic year were the European Finance Tour to Zurich and the InternationalResearch Project to Rio de Janeiro and São Paolo. These study trips provide students with an excellentopportunity to get international and practical experience. Other activities in the past academic year werethe Young Financial Dinner and the Consultancy Dinner. During these dinners students had theopportunity to get in touch with companies in an informal setting. Last but not least the FSR organisedthe Corporate Finance Competition (CFC). The CFC is a three day business course that took place in theHotel van Oranje. Students compete in groups on different cases with different corporate financecompanies.

For the first time the new academic year was opened with the FSR Master Kick-off Day. During this day, allmaster students who are studying finance or accountancy were inducted into the final year of their study.The day ended with a social drink during a boat trip through the Port of Rotterdam. Another highlightwas the International Banking Cycle. During this cycle, the major investment banks around the globe visitRotterdam and Amsterdam. Because of the financial situation in October and November, the cycle washighly interesting and even more successful in terms of participants. The year 2008 was concluded withthe annual FSR Christmas gala dinner. A wonderful end of a wonderful year!


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7.6 Student Marketing Association EURSince 1969 the Marketing Association EUR has been the study association for master students who areinterested in marketing. The Marketing Association EUR acts as a bridge between the theory and thedaily practices of marketing. In order to accomplish this, it organises several events where students havethe opportunity to get in contact with companies. Every year the Marketing Association EUR organisesthe Career Cycle, Commercial Break, the Erasmus Marketing Thesis Award, the ‘Reclamedag’, the B2B-Event, the International Research Project and the newest event, Speeddating!The MarkEUR is the marketing magazine for marketeers. This magazine provides a fresh look atmarketing and it is published four times a year.The Activities: This year the Career Cycle brought students to Procter&Gamble, Grolsch and T-Mobile. The‘Reclamedag’ has been a huge success throughout the years due to the informal and creative aspect ofthe day. This makes it an ideal first introduction to marketing. At the B2B-Event marketing students getthe chance to have a look at companies that focus on the business-to-business market. Speed dating is thenewest event of the Marketing Association EUR. Within a short time students get the opportunity tomeet many companies during one-on-one dates. This year the International Research Project will takestudents to many countries depending on the company for which the research is conducted.Together with the Marketing Associations of Amsterdam, Groningen, Eindhoven, Tilburg and Maastricht,Marketing Association EUR transformed into the Marketing Association Netherlands (MAN).

7.7 R.F.V. Christiaanse-TaxateurThe ‘Rotterdamse Fiscalisten Vereniging Christiaanse-Taxateur’ is the study association of the DutchBachelor and Master programmes ‘Fiscale Economie’ (‘Economics & Taxation’; Erasmus School ofEconomics) and ‘Fiscaal Recht’ (‘Tax Law’; Erasmus School of Law). With over 450 members and about 75active members, R.F.V. Christiaanse-Taxateur is one of the largest study associations in the Netherlands inthe area of tax law.

R.F.V. Christiaanse-Taxateur provides students with the opportunity to get in contact with their fellowstudents and with a broad range of companies in the area of tax law. This is facilitated by differentactivities for both bachelor and master students, organised by numerous committees. The biggest activityis the ‘Fiscale Bedrijvendag’ (Tax Business Day). During the ‘Fiscale Bedrijvendag’ students can exploretheir career opportunities by visiting different activities such as workshops, company presentations,informal recruitment activities and a company diner.

Each year students can apply for an International Research Project. In 2008 the destination was Curaçao,and the project consisted of research in the area of international tax law, company visits and numerousinformal activities. R.F.V. Christiaanse-Taxateur also has an own magazine, ‘De Aanslag’, which isdistributed four times a year. ‘De Aanslag’ provides updates about activities of the study association,interviews with tax lawyers, students and lecturers, articles about developments in the area of tax lawand so on.

In 2008 R.F.V. Christiaanse-Taxateur celebrated its third anniversary during the ‘Anniversary Week’. DutchState Secretary for Finance J.C. de Jager, one of the keynote speakers at the anniversary academicconference talked about ‘Taxation Five Years From Now’. To celebrate the end of the anniversary week,R.F.V. Christiaanse-Taxateur organised an anniversary party for students, graduates and business relations.


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7.8. In DuploThe ‘In Duplo’ study association is an association that focuses on students studying bothDutch Law and Economics & Business at the Erasmus University Rotterdam in the Netherlands. In Duplo isconnected to both the Economic Faculty Association (EFR) and the Legal Study Association (JFR).

The Erasmus University Rotterdam is the only university that offers this Law & Economics programme inthe Netherlands. The program allows students to finish both the Economics and the Law study within 6years and thus to obtain the LL.M. and the MSc. title within 6 years.

In Duplo organises a variety of formal and informal activities that are especially designed for studentsthat participate in the ‘mr. drs. programme’. Formal activities organised this year were various companyvisits to law firms, accounting firms and banks. The most important formal activity organised by In Duplothis year was our congress, named the Talent Class. The Talent Class is a way for students to getacquainted with at least 5 companies, varying from multinationals and consultancy firms to law firms. Thisall takes place in a single day by participating in cases and by dining with employees from the differentparticipating companies. The participating companies were Heineken, Unilever, AT Kearney, Bain &Company, Houthoff Buruma, Baker & McKenzie and Freshfields Bruckhaus Deringer.

Typical informal activities are social drinks and several sporting activities, such as a pool tournament or arowing activity. In Duplo also starts off the year by organising a short trip to a European city for a groupof first-year students to give them the opportunity to get to know each other and to get betteracquainted with the Study Association. This year In Duplo visited Cologne with a group of 40 studentsfrom the mr.drs. programme.


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Number of women

Fte women

20050

2006 2007 2008

50

100

150

200

250

300

350

400

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8 . S t a f f

8.1 Development in number of employees 2005-2008On the reference date (31-12-2008) the total amount of FTE appointed at the ESE was 258.65. This isabout the same amount as on this date in 2007. In 2007 there was a sudden increase in the number ofstudent assistants; in 2008 this was reduced considerably again. The number of associate professors,assistant professors, assistant professors in training, PhD students and support staff increased slightly. Thisis consistent with the goal to gradually fill the existing vacancies, mainly among the academic staff, withstaff that meet the high qualitative standards that are set by the ESE.One of the goals set is to have 80 PhD students appointed at the ESE at any given time. At the end of2008, 70 PhD students were appointed. This is a slight increase as compared to 2007 (at the reference datein 2007, 69 PhD students were appointed). To further increase these numbers, new decisions were madeon where to publish PhD vacancies. Both ERIM and TI will publish relevant vacancies on their website.Furthermore, PhD as well as all other ESE vacancies are published under ‘working at the ESE’ on the newwebsite.

Figure 2: Development in number of employees 2005-2008

Figure 3: Development of staff according to year per job category

Total number

Total fte

Number of women

Fte women

Professor0

10

20

30

40

50

60

70

80

Assoc.Professor

Assist.Professor

Assist. Professorin-training

OtherScientific Staff

PhD-students Stud. Ass. Support Staff

Fte’s 2005 Fte’s 2006 Fte’s 2007 Fte’s 2008



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On December 31, 2008 the staff of the ESE consisted of a total of 361 people and 258, 68 FTE.

D I S T R I B U T I O N O F P E R S O N N E L W I T H I N T H E D I F F E R E N T O R G A N I Z AT I O N S A N D / O R D I V I S I O N S

Department Prof Assoc. Assist. Assist. PhD- Stud. Support Total

Prof Prof Prof. in student Ass. staff.

training

Economics Male 8 1 9 15 1 34Female 1 1 4 6

Business Economics Male 14 4 19 7 44Female 1 5 9 9 24

Econometrics Male 13 2 18 1 10 44Female 3 3 4 10

Applied Economics Male 12 1 10 4 2 29Female 1 6 2 5 14

Administration Office Male 2 12 14Female 14 14

Education Mgmt

Education Male 8 11 19Service Center Female 6 13 19

PhD Students ESE Male 58 58Female 12 12

Other Staff ESE Male 4 2 6Female 6 3 5 14

Total 49 9 71 7 70 73 82 361

Table 26: Distribution of staff in numbers within the different organisations and/or divisions

D I S T R I B U T I O N O F S TA F F I N F T E W I T H I N T H E D I F F E R E N T O R G A N I S AT I O N S A N D / O R D I V I S I O N S

Department Prof Assoc. Assist. Assist. PhD- Stud. Support Total

Prof Prof Prof. in student Ass. staff.

training

Economics Male 4.20 2.00 8.14 3.30 0.50 17.14Female 0.40 0.40 1.00 2.90 4.30

Business Economics Male 10.85 3.90 13.40 2.11 28.66Female 1.00 5.00 2.82 6.50 15.32

Econometrics Male 10.50 4.40 15.47 1.00 1.00 2.42 32.39Female 2.60 0.63 3.40 6.63

Applied Economics Male 7.80 1.90 9.50 1.00 1.00 1.60 21.60Female 0.40 0.40 5.00 0.50 3.95 9.85

Administration Office Male 0.40 10.95 11.35Female 9.20 9.20

Education Mgmt

Education Male 2.45 9.04 11.49Service Center Female 1.80 9.40 11.20

PhD Students ESE Male 55.60 55.60Female 11.80 11.80

Other Staff ESE Male 5.40 1.00 1.10 2.10Female 0.85 3.80 10.05

Total 34.15 7.00 60.11 6.40 69.40 19.28 62.34 258.68

Table 27: Distribution of staff in FTE within the different organisations and/or divisions


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In addition to the high standards of staff reflected in the current personnel policy, emphasis is put oncareer development. This is represented in the Tenure Track for Academic Staff and the fact that eachstaff member is expected to show growth either within the positions he or she holds in the ESE, orproceed with a career elsewhere. In October 2008 the dean of the ESE and the chairman of the Executiveboard of the EUR signed a covenant also with respect to the targets set from now until 2013 regardingthe HRM-policy. In this document the strategic choices are translated into measurable targets to be metwithin the next four years.

In 2008 all departments compiled new staffing plans. The plans refer to the planning period of 2009 to2013. The total amount of staff necessary to provide the courses is used as a guideline to determine thetotal amount of FTE needed within the ESE. This amount remained the same as in the previous planningperiod.The decisions for this planning period mainly concern the qualitative allocation of staff, for instance inwhich area of expertise staff will be needed. A new policy was introduced for this planning periodbecause in terms of academic staff, there is no longer a dedicated amount of staff assigned per position.Only the area of expertise is fixed and the amount of FTE available for this expertise. Consequently, ifpeople meet the qualifications, they can enjoy promotion up to the level of endowed professor, providingthe necessary funding is available. This is another way to stimulate the ‘grow or go’ policy.

For the support staff, some qualitative adjustments were also made. The job descriptions for some of thesupport staff working with the Education Service Centre were revised. The reason or this is that the jobdescriptions that were formulated in 2004 turned out to be too general. In practice, the staff membersconcerned were specialised in certain fields (or a combinations thereof). Because this division of work alsoproved to be useful, the requirements were formalised by adapting job descriptions that matched thepositions in these jobs.

Of the 258,68 FTE, appointed on December 31, 2008 at the ESE, 59.10% were appointed on a temporarybasis. If student assistants and PhD students are excluded4 , this figure is reduced to 35.32%. This is aconsiderable increase compared to 2007, when on the date set 20% was appointed on a temporary basis.

On the reference date the ESE also offered hospitality to 85 people, 15% of these guests were of aforeign nationality. Hospitality Agreements are offered mainly to ex-ESE staff members and/or quests thatare invited to do temporary academic work at the ESE. ESE staff members in return are occasionally giventhe opportunity to work at a foreign university for a certain period of time. By providing the opportunityto work with international colleagues the ESE strives to stimulate and support the professionaldevelopment of its staff.

As mentioned before, the ESE strives towards top quality staff. One of the goals is that all academic staffmembers have a PhD degree. In 2008 93% of all academic staff members (excluding PhD students)complied with this qualification. Another goal is that all academic staff members are members of eitherERIM or TI. For those who did not comply with these qualifications, individual agreements were made onhow to qualify. More information about this is provided under ‘Performance appraisal and bonuses’.

8.2 NewcomersIn 2008 a total of 565 new staff members were appointed to the ESE. 18 people were appointed to aposition in the support staff, 17 were appointed as PhD students and 15 were appointed to a position ofassistant professor. The ESE also appointed two new professors, one associate professor and three newassistant professors in training.

4 Student assistants and PhD-students are always appointed on temporary contracts.5 Student assistants are excluded since they are usually only appointed for a short period of time.


56

Since October 2006, the ESE has organised induction meetings for newly acquired staff to help them getto know each other and the School. In 2008 an evaluation of the total induction policy was done andbased on this, the induction meeting was revised. The first induction meeting according to the newprogramme was held at October 16, 2008. 15 new employees were invited, of which 14 attended themeeting. The programme started with a lunch, during which the Dean held a speech about the strategyof the school, and the Programme Director about the education, and the Director Strategic Projects andAlliances held a speech concerning research and the possibilities of external funding. This was followed bya workshop on inspirational teaching. Later a tour over the campus followed, after which the programmewas completed with drinks in the Faculty Club.

Thirteen of the fifteen participants belonged to the academic staff, and seven people held a foreignnationality. The afternoon was evaluated positively by the participants. Based on the participants’reactions and the fact that 14 of the 15 people attended the meeting, the conclusion was that theprogramme for the afternoon was inviting and appealing. The programme will be continued in this setupand will be evaluated and fine-tuned frequently.

In 2008 the ESE advertised for a total of 9 vacancies, 6 of which were for support staff and 3 were foracademic positions. Seven out of these have been filled in 2008; one of the procedures was still runningby December 31. A suitable candidate was found after this date. In the Mature Talent project the goal isto hire several people each year. In 2008 two suitable candidates were recruited.The vacancies are always published on the website of Academic Transfer, in two cases the advertisementswere also published in a newspaper, De Volkskrant, and all vacancies for Support Staff were alsopublished on the website of ‘Werken bij de overheid’. Two of the vacancies for support staff were alsoforwarded to employment agencies. In one case the candidate presented by the agency was hired.

P O S I T I O N N O O F R E S P O N S E S M E D I A C A N D I D AT E H I R E D C A N D I D AT E N AT I O N A L I T Y

Mature talent 12 Volkskrant, Yes, 2 DutchAcademic Transfer

Assistant professor 3 Academic Transfer No N/A

Regional Economics

and IndustrialOrganisation

Secretary Applied 14 Academic Transfer, Yes Dutch

Economics Werken bij de

overheid,Recruitment agency

Secretary Tinbergen Academic Transfer, Yes 6 DutchInstitute Werken bij de overheid

Recruitment agency

Secretary Business Academic Transfer, Yes 6 Dutch

Economics Werken bij de overheid,Recruitment agency

Coordinator Study Point Yes Dutch

Head Education 26 Volkskrant Yes DutchService Centre

Assistant professor 10 Candidate via Yes, but not of Dutch

Economics of networking applicants.

organisation andstrategy

Project officer ESC 8 Academic Transfer Yes Dutch

Table 28: Overview of advertisements placed in 2008

6 The candidate that was hired was presented by the recruitment agency.

8.3 Promotions & TrainingIn 2008 a total of 22 staff members got a promotion. Four student assistants were appointed to a regularstaff position, two off them as a member of the Support Staff and two of them as a PhD-Student. ThreeSupport Staff members were promoted to a higher position in the same job category. Among theAcademic Staff, two PhD-Students were promoted to a position of Assistant Professors and two AssistantProfessors-in training were promoted to a position of Assistant Professors. Another Two AssistantProfessors were promoted to a higher rank in this job category and two were promoted to a position ofAssociate Professor. Four Associate professors were promoted to a position of Endowed Professor.

In 2008 all student assistants and PhD students who lecture the ESE workgroups, attended theEducational Course for Beginners. Since 2007 all academic staff members from assistant professor toprofessor are obliged to qualify for the Basic Qualification for Education. This is an extra intensive courseon didactical methods and teaching, including English. In 2008 several new assistant professors attendedthis course. Two associate professors attended the Management Course for Academic Staff, which is partof the qualifications for associate professors.All secretaries attended a course on professional client support by telephone. In three departmentsEnglish courses were provided for the support staff. As in previous years, several people attended a firstaid course. All ESE staff members attended an afternoon organised around the theme ‘expertise’.Different workshops were offered for Support and Academic staff, varying from professional teaching toteam building.

8.4 Termination of contractsA total of 457 people left the ESE in 2008. Among them were 16 PhD students, 13 members of the supportstaff, 9 assistant professors, 3 associate professors and 3 professors. The reason for leaving was because ofexpiration of the contract for most PhD students. The other people left for various reasons. A total of 21people received their resignation upon their own request, two people entered early retirement and oneperson passed away.

E A R LY R E S I G N AT I O N E X P I R AT I O N O F

R E T I R E M E N T U P O N R E Q U E S T D E C E A S E D C O N T R A C T T O TA L

PhD student 2 14 16

Support Staff 1 8 1 3 13

Professor 2 1 3

Associate Professor 2 1 3

Assistant Professor 1 7 1 9

Other Academic Staff 1 1

Total 2 21 1 21 45

Table 29: Distribution of reason for departures per job category

Because the ESE wants to learn from people’s experience in the School, people who are leaving areinvited for an exit interview. In 2008 exit interviews were held with 14 people. Of these 5 hold a foreignnationality, 6 belong to the support staff, 2 are PhD-students and 6 are assistant professors. People wereasked what their reason(s) were for leaving the ESE. The most frequently cited reason was job content,followed by better career opportunities elsewhere, better employee benefits and a better workatmosphere. Four people mentioned that the job did not live up to the expectations they got in the jobinterview. When asked about possibilities for improvement, several people mentioned more teamworkand more staff meetings, both from the academic and support staff.

7 Because some people left within a year, the totals do not add up to figures mentioned earlier.


57


58

8.5 DiversityAs in previous years, one of the focal points of the ESE policy was to enlarge the diversity of its staff. In2008 the percentage of women appointed in the position of Assistant Professor rose from 15% to 23%. Inthe category of Associate Professors the percentage of women rose from 0 to 14%. This was due to apromotion of one of our talented Assistant Professors. In the category of Professors the percentage rosefrom 1 to 2%. This was due to one new endowed Professor being recruited.

Figure 4: Number of women appointed per job category

P E R C E N TA G E O F W O M E N A P P O I N T E D P E R J O B C AT E G O RY

Prof Assoc. Assist. Other Assist. PhD- Stud. Support Total

Prof Prof Academic Prof. in student Ass. staff.

Staff training

2005 0 0 8 21 0 28 36 57 27

2006 0 0 14 0 0 22 40 59 27

2007 1 0 15 0 67 15 38 65 28

2008 2 14 23 0 84 17 34 63 30

Table 30: Percentage of women appointed per job category

8.6 InternationalisationOn December 31 the ESE counted 31 different nationalities among its staff. This encompasses 20% of allESE staff. Of the foreign nationals, 50% are EU citizens, and 50% are Non-EU citizens.In 2008 the reorganisation of the Administrative Departments at the university level, including the HRpolicy staff, was completed. Most of the HR staff that was appointed in the old Central HR Departmentwas replaced by new positions in the new Shared Service Centre Human Resources and Finance (SSC HRF).One of the strategies developed in the reorganisation was to make teams of back and front office officerswho cooperate with regard to a specific topic. The back office is staffed with a policy officer whodevelops specialised knowledge on a specific topic and works entirely for the EUR, and the front officeofficer is someone who works on the same topic on a day-to-day basis, mostly in one of the schools.Because the EUR and ESE both attach top priority to internationalisation, a back-office front-office teamwas formed with regard to internationalisation, staffed by a policy officer from the SSC HRF and one HRassistant from the ESE.

Non-Academic Staff

Stud. Ass.

PhD-students

Total

Other Academic Staff

Assist. Prof

Prof.

Assoc. Prof.

Assist. Prof. –in-training

20050

2006 2007 2008

10

20

30

40

50

60

70

80

90%


59

This resulted in preparations being made in cooperation with the IND and the Civil Affairs Department ofRotterdam, to simplify the resident permit applications and registration procedures for internationalacademic staff. Instead of people having to go to different Public Service Offices, starting in 2009 they canmake all necessary arrangements and registrations in one visit.Another project was aimed at finding a solution for helping expats in finding their way around in theNetherlands. Arrangements were made with a company that can provide help in organising mostnecessary arrangements when moving to the Netherlands. This concerns nearly everything from finding aplace to live to help people organise their electricity, heating and water or Internet at home. In 2009 apilot will be started, in which departments can acquire a ‘backpack for expats’ which means this personcan purchase up to four hours of assistance from this company. The pilot will initially be running for aperiod of 9 months.

8.7 Age structureThe age structure of the ESE remained the same as in 20078. As can be seen from the Table showing thepercentage that each age group represents in the total amount of FTE in that year, the age structureremained quite stable over the past four years.

D E V E L O P M E N T O F A G E S T R U C T U R E A C C O R D I N G T O Y E A R S I N %

< 26 26 – 30 31 - 40 41 - 50 51 - 60 > 61

2005 8 20 24 26 20 3

2006 13 22 24 19 21 2

2007 10 21 29 18 21 2

2008 11 21 26 18 21 3

Table 31: Development of age structure according to years

Figure 5: Development of age structure according to years

8 In the age structure numbers, student assistants are not included they always are in the younger age group.

20050

10

20

30

40

50

60

70

80

90

100

Nu

mb

ero

fem

plo

yees

Age groups

t/m 25 26 t/m 30 31 t/m 40 41 t/m 50 51 t/m 60 > 61

20082006 2007


60

8.8 Performance appraisal and bonusesIn 2008 performance appraisal interviews were held with all ESE staff, excluding the ones who wereabroad over the past year or had been employed for a too short period of time to make a goodassessment of their results.In the performance appraisals SMART9 agreements are made on what each staff member will do todevelop professionally, especially if they do not qualify for all job qualifications yet. Anyone with specialachievements, for instance a publication in a top scientific journal, is rewarded. This resulted in a bonusfor exceptional achievements being awarded to 36 people. Six people celebrated their 12.5 years jubileeas a public servant and four people celebrated their 25 years jubilee. For these occasions bonuses are alsoawarded.

8.9 Occupational health and safetyIn 2008 17 workspace examinations were carried out. In 5 cases this was initiated because people reportedto have back, arm or shoulder problems. Twelve workspace examinations were carried out as part of theSee’s health risk prevention programme. This entails a workspace examination of each new member ofstaff that is appointed for a minimum period of one year.

In 2008 as part of the shared service agreements (see under HR services) one of the ESE’s health and safetyofficers also conducted workspace examinations for the SSC Academic Affairs and for the Faculty ofPhilosophy. In these organisations, two workspace examinations were carried out because of medicalproblems and four as part of the health risk prevention programme.

Most of the recommendations given based on the workspace examinations concern how the workpace isbeing used and adapting of the height of the desk.

Absence due to illnessThe absence due to illness percentage expresses the percentage of the workable days that people wereabsent due to illness. In 2008 this percentage was 2,34%, which is an increase in comparison to 2007(1,93%). This percentage is largely attributable to 3 people who were ill because of medical causes for along period of time (> 6 months). These people are guided intensively, both by the company doctor andtheir supervisors. In compliance with Dutch legislation, as soon as re-integration to work is possible, aplan to stimulate the employee’s re-integration to work is set up and the progress is evaluated frequently.If these people are excluded, the illness percentage drops to 1.6% for the ESE as a total. In comparison toother industries, the percentage is still very low. As a rule of thumb, 4% illness absence is considered the‘inevitable’ illness absence; the amount of illness absence due to regular flew epidemics and the like.

9 SMART represents: Specific, Measurable, Acceptable (for both parties), Result- and Time-bound.


61

Like in 2008 the raise was caused by people staying absent for a longer period than the previous year. Theaverage time people stayed absent rose from 11 to 16 days, if you exclude the people being ill for over 6months, this still rises to 14 days. 80% of all employees were never absent due to illness, excluding thepeople being ill for more than 6 months, this percentage is 81%.

A B S E N C E D U E T O I L L N E S S 2 0 0 8

% of staff that

absence duration of reporting were never absent

percentage absence frequency due to illness

ESE EUR ESE EUR ESE EUR ESE EUR

Academic Staff 1.82 1.06 27.92 13.57 0.26 0.4 88.79 80.83

Support Staff 4.09 3.57 11.17 9.18 2.06 2.01 42.22 34.33

Total 2.34 2.09 16.69 10.33 0.63 0.99 80.69 65.42

Total (excluding non

work related illness

> 6 months, 3 people) 1.6 14.97 0.6 81.09

Table 32: Absence due to illness at ESE compared to total EUR Community

As in previous years the support staff has a higher percentage of illness absence than the academic staff.This is partly explained by the fact that they seem to report their absence better than the academic staff.The academic staff members probably do not always register ill when they are ill, and this is not noticedas often because they frequently work from home. Among the support staff, working from home is lesscommon, so there will be less ‘hidden’ absence due to illness. Another reason might be that people donot report that they are well again, until a regular workday. In particular when people work part-time,this might add up because they are registered ill longer than they actually were ill. Since working part-time is more common among the support staff, this will occur more often in this group than among theacademic staff. This year HR specifically asked the department contact persons to be aware of this andreport the actual day of being well again.

A B S E N C E % D U E T O I L L N E S S AT E S E I N T I M E

2008 2007 2006 2005

Academic Staff 1.82 1.3 0.72 1.11

Support Staff 4.09 3.86 2.77 3.91

Total 2.34 1.93 1.29 1.86

Table 33: Absence % due to illness at ESE in time

8.10 HR Services ESE-EURIn 2008 agreements were made on intensifying the cooperation with the SSC HRF. The HR Staff willformally be transferred to the SSC with a central coordinator for the coordination of day to day activitiesremains appointed for HR in the ESE. The ESE coordinator is also a member of the Board, thus ensuring aclose link to ESE developments. The HR staff will be part of a bigger team which will make the team lessvulnerable to variations in work load or staffing. Another benefit will be that they have moreopportunity to professionalise, working with more direct colleagues en possibly for different departmentsor schools within the EUR, or perhaps forming a specialist team that at the level of the EUR as a total (seealso under Internationalisation). In 2009 a pilot will be run with this way of working, if this is tosatisfaction to the parties involved, the transfer will be formalised in 2010.


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63

9 . F i n a n c i a l A n n u a l R e p o r t

9.1 IntroductionThe ESE ended the calendar year 2008 with a positive financial result (k€ 1,683). The ESE has achieved areserve position of k€ 2,322, which is about 10% of the budget transferred.The development in income includes an increase in budget transferred (first flow) as well an increase inother income. The rise in first flow budget is the result of contributions for price adjustments for wagesand salaries, budget for the development of minors and an increase of the contribution based on theDelta model.The rise in other income is the result of an increase in second flow of funds (projects funded by theNetherlands Organization for Scientific Research), higher amount of income from other parts withinthe EUR and more funds from contracts with third parties.

New staff is being recruited but staff also left the ESE. In total the ESE has still not filled all the vacanciesyet in 2008. For a continuation of the primary processes, in particular in the field of teaching, externallecturers were being hired. In the build-up phase towards 2013 the ESE also hired externalcommunication, financial and policy staff.

9.2 Profit & Loss Statement 2008

P R O F I T & L O S S S TAT E M E N T 2 0 0 8

(in euros x 1000) 2008 2007

(1) Budget transferred

Model-based 17,786 16,887

Matching second flow of funds 196 151

Other budget transferred 3,587 2,755

(2) Other income

Within the EUR 903 372

Within the EUR Holding 1,347 1,592

External

Second flow of funds 648 333

Third flow of funds 2,782 2,747

Total income 27,249 24,837

Wages and Salaries 13,243 12,534

(3) Pension expenses 1,683 1,560

Social charges 1,057 870

(3) Other staff expenses 853 915

Temporary workers and claimants 1,709 880

Other expenses

(4) Within the EUR 2,060 1,998

(5) Within the EUR Holding 1,486 1,407

(6) External 3,475 3,116

Total expenses 25,566 23,280

Result 1,683 1,557

Table 34: Profit & Loss Statement 2008


64

9.3 Balance sheet as at 31 December 2008

B A L A N C E S H E E T 3 1 D E C E M B E R 2 0 0 8

(in euros x 1000) 31-12-2008 31-12-2007

A S S E T S

Fixed assets

(7) Tangible fixed assets 219 190

(8) Financial fixed assets 110 110

Current assets

(9) Receivables, prepayments and accrued income

1,610 2,136Liquid assets 5,072 4,154

Total assets 7,011 6,590

L I A B I L I T I E S

(10) Equity capital 2,322 694

(11) Provisions 299 511

(12) Long-term debts 374 505

Current liabilities(13) Debts, accruals and deferred income 4016 4,880

Total liabilities 7,011 6,590

Table 35: Balance sheet 31 December 2008 Nog niet definitief!

9.4 Notes to the balance sheet and the profit & loss statementGeneralThe profit and loss statement and balance sheet of the Erasmus School of Economics are shown. Financialtransactions with other organisational divisions of the EUR and with private limited companies affiliatedwith the ESE, which are subsidiaries of the EUR Holding Ltd, are shown separately. The assets andliabilities are valued in accordance with the EUR’s accounting principles10 .

Budget transferredThe budget transferred comprises the share of the government contribution from the Ministry ofEducation, Culture and Science received by the EUR and allocated to the Erasmus School of Economics(the first flow of funds).

The model-based allocated budget consists partly of lump-sum amounts for teaching and research.Another part of this model-based budget is dependent on the volume realised on certain performanceparameters, such as the number of first-year students, the number of bachelor and master degrees andthe number of doctorates awarded. When calculating the performance-dependent amounts, three-yearaverages are taken. This means that the funds allocated to the School depend on the average of theparameters over the three years prior to the financial year.

Besides the model-based budget, the School is also allocated the matching of the EUR of Veni/Vidi/Vicigrants as budget (matching second flow of funds).

10 Reference is made to the annual financial report of the EUR.


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The other budgetary allocations concern various contributions for strategic projects and adjustments forprice indexations wages and salaries. For 2008 the strategic projects were contributions to issues like thedevelopment of the annual planning system, the development of a quality care system, reforms todoctorate programmes and the promotion of top talent in science. Just as in previous years, in 2008 acontribution from the Executive Board was used to reform the ESE. Undertakings from 2006 onwards areconditional on realising growth in the second flow of funds.

Other incomeThe other income realised within the EUR and the EUR Holding relates to the use of staff of the ErasmusSchool of Economics in activities of other organisational divisions of EUR (Group). These are primarily:

• Providing education for the International Business Administration of the Rotterdam School ofManagement

• Payments from the private limited companies affiliated to the ESE for:

• Directorships of ESE staff at affiliated private limited companies;

• Use of accommodation and use of services such as IT;

• The use of School of Economics staff in post-initial education and commercial research projects;

• Contributions from Eur Holding Ltd. concerning the results of supporting private limited companies.

The income from the second flow of funds in 2008 comes largely from income from Veni/Vidi/Vici grantsand research grants for PhD/students of the NWO.

In 2005 the the ESE decided to bring – to the best extent possible - all activities for the third flow of fundsinto private limited companies as subsidiaries of the EUR Holding. The ESE will however continue toreceive income directly from the third flow of funds. This will be from contracts with parties which wishto do business exclusively with the University and not with a commercial company (such as the EuropeanUnion), but also from tuition fees, chair funding and secondments. Besides these forms of income, thethird flow of funds comprises contributions from the Free University of Amsterdam (VU) and theUniversity of Amsterdam (UvA) towards the funding of the Tinbergen Institute.

Wages and salaries, pension expenses and social contributionsThe increase of these costs is mainly the consequence of an increase of CAO wages.

Other expenses within the EURIn 2008, 33% of these expenses comprised payments to ERIM. Accommodation expenses paid by the ESEmake up 23% of these expenses, the use of other central services and facilities make up 23% and costsfrom other Schools make up 21% of the other expenses within the EUR. As far as accommodation isconcerned, it should be noted that the ESE is housed in a building owned by the EUR. The ESE only paysaccommodation expenses if it uses more than the standard floor area.

Other expenses within the EUR HoldingThese are mostly the expenses of hiring staff from the private limited companies for teaching purposes atthe ESE.

Other external expensesAbout 33% of these expenses in 2008 were expenses of the Tinbergen Institute (teaching expenses forMPhil students and PhD students, as well as expenses relating to (and for facilitating) research activities.In addition, 8% of the expenses were IT expenses (investment and depreciation), 5% for officeequipment, 25% for business travel expenses, conference fees and representational expenses, 19% foroutsourced activities such as printing and typesetting and legal advise and 10% for other office andgeneral expenses.

The increase of other external expenses is the result of occasional legal costs, research costs and a rise inexpenses for the Tinbergen Institute.

Tangible fixed assetsThe ESE adopts the rule that only investments in fixed assets with an acquisition price of more than 12K €

are capitalised and written off over their economic life. The first depreciation is made in the year ofpurchase. The depreciation period depends on the type of equipment and varies from 3 to 25 years.

The book value of the tangible fixed assets covers mostly equipment.

O V E RV I E W O F TA N G I B L E F I X E D A S S E T S

(in euros x 1000) Furniture and equipment

Acquisition price 2007 957Decline in value and depreciation at end 2008 - 767

Book value at end 2007 190

Investments 2008 99Depreciation 2008 - 70

Book value at end 2008 219

Table 36: Overview of tangible fixed assets

Financial fixed assetsThese are solely loans to the EUR Holding to finance the equity capital of a number of private limitedcompanies affiliated to the ESE11. Valuation is at nominal value.

Receivables, prepayments and accrued incomeReceivables are valued at nominal value. A provision for bad debts is made for receivables on externalparties.Included under Receivables are:

R E C E I VA B L E S 2 0 0 8 A N D 2 0 0 7

(in euros x1000) 2008 2007

Debtors external 523 579

Debtors EUR and EUR group12 797 1,164

Other internal receivables EUR 26 172

Other receivables external 2 2Prepayments and accrued income 262 219

Total 1,610 2,136

Table 37: Receivables 2008 and 2007

Equity capitalThe positive annual result of 1,683K € has led to a positive equity capital of 2,322K €. The expectation ofa capital of 815K € at the end of the plan period 2004 to 2008 is fully realised.

E Q U I T Y C A P I TA L

(in euros x 1000) Equity capital

Equity capital at end 2007 694

Result of financial year (2007) 1,683Direct capital movements13 - 55

Book value at end 2008 2,322

Table 38: Equity capital

11 See chapter 3 for an overview of the private limited companies.12 The debtors ranked as EUR and EUR group are receivables from other organisational divisions of the EUR and private limitedcompanies under the EUR Holding.

13 The direct capital movement concerns the transfer, in accordance with university policy, of a part of the annual result of theTinbergen Institute, for which the School of Economics is the budget holder, to the long-term debt.


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ProvisionsIn 2005 a provision was made to settle existing obligations arising from the reorganisation of the ESE. Thisis mostly the ESE’s share of redundancy pay costs. The provision is determined statically. At the end ofeach financial year an estimate is made of the situation in respect of the necessary provision, which hasled in this financial year to the release of the provision.

Long-term debtsThese relate to the share of the VU and the UvA in the assets of the Tinbergen Institute. This procedure isthe result of the cooperative agreement between the participating parties (EUR, VU, and UvA) which saysthat if the institute closes down, the remaining financial reserves and assets will be divided among thethree faculties, in the proportion that had been adopted until then for payment of the fixedcontributions of ESE to the institution.

S H O RT- T E R M D E B T S

The composition of the short-term debts is as follows:

(in euros x1000) 2008 2007

Instalments received in advance for work in progress 905 1,063

External creditors 392 492

EUR and EUR group creditors14 1,460 1,360

Other internal debts EUR 536 1,098

Other external debts 1 22

Accruals and deferred income 723 844

Total 4,017 4,880

Table 39: Short term debts 2008 and 2007

9.5 Off-balance sheet obligationsGuarantee for Tinbergen InstituteAs part of the re-accreditation application by the Tinbergen Institute, ESE has provided a guarantee forthe period 2006-2011. During this period, the ESE will make the following resources available to or for thebenefit of the TI:

• Resources for at least 0.4 FTE research time for at least 20 researchers who qualify to be admitted to theTI as research fellow;

• Resources for 25 PhD students attached to the TI;

• Continuation of the share of 50% in the current fixed contributions for the TI;

• Continuation of the variable contributions for the TI, corrected annually for inflation;

• A contribution to financing the grant programme for MPhil students;

• Use of lecturers in the 2-year MPhil programme of the TI.

14 The creditors ranked as EUR and EUR group are receivables form other organizational divisions of the EUR and operatingcompanies under the EUR Holding Ltd.


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9.6 Affiliated private limited companiesRegarding its contract funding (education and research) the ESE is supported by a group of private limited

companies, which are in turn part of EUR Holding Ltd. As mentioned before, Erasmus Academie Ltd operates

under the administrative responsibility of the ESE since May 2008. From September 2008 the activities of ERBS

Ltd have been transferred to the RSM Ltd. From this date ERBS Ltd is not involved with ESE activities.

O V E RV I E W O F P R I VAT E L I M I T E D C O M PA N I E S U N D E R E U R H O L D I N G LT D A F F I L I AT E D W I T H E S E

Associate Limited Turnover 15 Results after Capital 16 Fte Number of

Companies (2008) (in k€) interest (in k€) (in k€) employees

Erasmus Academie Ltd 17 2,555 57 365 9,53 13

EURAC Ltd 5,999 1,214 4,109 27,33 44

EC3MA Ltd 583 116 166 3,00 3

ERBS Ltd 209 13 46 0 0

FEI Ltd 875 128 759 8,10 20

IHS Ltd (50%) 3,071 173 1,920 26,50 33

MELEUR Ltd 569 -15 610 3,50 5

RHV Ltd 1,351 67 462 11,75 15

SEOR BV 2,125 72 3,383 18,70 22SMO Ltd 474 -267 -382 0,30 1

Total 17,811 1,558 11,438 108,71 156

Tabel 40: Overview of Private limited Companies under EUR Holding Ltd. affliated with ESE

15 The turnover is not being corrected for intercompany transactions.16 The minimum capital of the ESE affiliated Ltd´s has to be the total amount of personnel costs of these Ltd´s. Dividends will onlybe paid when the capital exceeds the total yearly personnel costs. In 2008 this was k€ 6,575, compared to k€5,730 in 2007.

17 The figures of the Erasmus Academie Ltd are the total figures of 2008.


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1 0 . M a n a g e m e n t a n d o r g a n i s a t i o n o f t h e E S E - O v e r v i e w

10.1 Management TeamThe dean is the general manager of the school and has the ultimate responsibility for the administrationand management of the school with respect to the areas of education and research. The dean is assistedby the vice dean, by the programme director, and by the directors of the school’s departments andresearch institutes. The dean and the vice dean receive support from the programme director and threemembers of the ESE Administration Office, which are the Head of the Dean’s Office, the Head of theFinancial Department and the Executive Assistant to the Dean. This group of 6 people meet on a weeklybasis to discuss the school’s policies and to determine the strategy. The Dean also has a number of specifictasks, which include appointing the directors of the School’s departments and Research Schools; the deanis responsible for setting down the School Regulations and the Teaching and Examinations Regulations.

The Dean collaborates in the administration of the university by consulting with the Executive Board ofErasmus University Rotterdam in the preparation of the School's plans and its budget. The Dean reportsto the Executive Board of the Erasmus University Rotterdam. The Dean is a full professor who is inprincipal appointed by the Executive Board for a period of four years.

Dean: Professor Philip Hans FransesPortfolio:

• Ultimate responsibility for management and administration of the ESE

• Finances

• Marketing / sale frameworks

• Staff/HRM policy employees

• Searching and scouting

• ESE holding structure

• Managing third party funding activities (teaching and research contracts)

Vice Dean: Professor Casper de VriesPortfolio:

• Strategy development in research

• Strategy development in education

• Allocation of research and education resources, quality assurance policy

• Coordination of research schools

• IT in teaching

• Substituting the dean

10.2 Administration office ESEThe process of decision-making of the Dean is prepared and carried out by the Administration Office ofthe ESE. Included in this process is the development of strategic policy on the School’s level and thecoordination with the Executive Board of the University. The Administration Office facilitates themanagement of the different departments of the School and of the programme director. Finally theAdministration Office facilitates services for all School members as well as for the private limitedcompanies affiliated to the ESE within the framework of the EUR Holding Ltd.

• Head Dean’s office: Saskia Krijger, LL.M.

• Head Financial Department: Ben Schotpoort

• Head Personnel and Organisation: Saskia Krijger, LL.M.

• Head ICT: Reino de Boer, MSc


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10.3 Management of ESE DepartmentsThe Department Directors are responsible for the policy (including long-term policy) of their departments.Each department functions as an independent unit and each is responsible for its own results. Within thegeneral guidelines of the School, each department director has considerable decision-making power andis responsible for adequate staffing for the performance of required tasks; thus maintaining quality ineducation and research. In addition, synergy is stimulated between the activities of other departments,research institutes and affiliated companies. .

• Director Department of Economics: Professor Jean Marie Viaene until April 2008;from April: Professor Otto Swank

• Director Department of Business Economics: Prof. Hans Gortemaker

• Director Department of Econometrics: Professor Albert Wagelmans

• Director Department of Applied Economics: Professor Bert van der Knaap

10.4 Management of Research SchoolsThe School’s activities are facilitated by two research schools accredited by the Royal NetherlandsAcademy of Arts & Science (KNAW): the Tinbergen Institute (TI) and the Erasmus Research Institute ofManagement (ERIM).

The management of the Tinbergen Institute includes the following members:

• Director General: Professor Maarten Janssen until March 2008; from March onwardsProfessor Herman K. van Dijk.

• Director of Graduate Studies: Professor Jaap Abbring until September; from September Professor EricPlug for the economics track and Professor Andre Lucas for the finance track.

The management of the Erasmus Research Institute of Management includes the following members:

• Scientific Director: Professor Ale Smidts

• Associated Director: Professor Patrick Groenen

• Director of Doctoral Education: Professor Eric van Heck

• Executive Director: Wilfred Mijnhardt, MSc

10.5 Education ManagementThe educational organisation at the ESE is managed by the programme director. The programme directoris appointed by the dean and leads the programme management.The Programme Director:

• Is responsible for organising and taking care of the education.

• Advises the dean about the educational programme as constituted in the Teaching and ExaminationRegulations.

• Is responsible for the internal quality, and the measures which result from this, as well for the externalquality(assessment).

• Manages the education of all programmes

• Consults with the directors of the departments about the teachers in the educational programmes.

• Consults with the vice dean on a regular basis about the educational policy of the School.

The programme director is supported by the Programme Management and by the Education ServiceCentre (ESC).

• Programme Director: Professor Ivo Arnold

• Programme Manager: Rob van der Wal, MSc, RA

• Head of Education Service Centre: Tjitte Alkema, MSc until September, Dr. Georges Span LL M fromDecember 2008.


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10.6 Advisory Boards and CommitteesThe school has established a number of advisory committees for the purpose of providing the dean withadvice (whether requested or not) in the area of teaching, research and personnel policy. The dean canappoint both permanent committees and committees for a limited time.Education Advisory CommitteesEach programme of the school has its own education committee. The education committee advises theprogramme director about all matters concerning the programme. The education committees also adviseabout carrying out the education programme and modifying the teaching and examinations regulations.Half of the members of the education committees are staff members and half are students. The ESE hasthe following education committees:

Economics & Business Economics

• Professor Han Smit (chairperson)

• Professor Enrico Pennings (secretary)

• Sjoerd van Bekkum, MSc, MPhil

• Dr Julian Emami Namini

• Luit Kloosterman, MSc

• J. Duijvestein (student member)

• Sebastian Korteweg (student member)

• Manon Ouwerkerk (student member)

• Y. Yuan (student member)

• A. Rosinka (student member)

Economics of Taxation

• Professor Ruud de Mooij (chairperson)

• Marcel Smeets. MSc (secretary)

• P. Pleunis until September 2008, Maurice Bakker from September onwards (student member)

• Sanne Verhage (student member)

Econometrics & Management Science

• Dr Christiaan Heij (chairperson)

• Dr Hans Frenk

• Dr Martyn Mulder

• Robbert Bos (student member)

• IrmaTempelaar (student member)

• Eva de Tombe (student member)

Economics & Informatics

• Professor Gert van der Pijl, (chairperson)

• Professor Rommert Dekker

• Dr Michiel van Wezel (until September 2008)

• Paul Feitsma (student member)

• Wouter Rijvordt (student member)

• Hans van Vliet (student member)


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Colloquium Doctum CommitteeThe task of the Colloquium Doctum Committee is to examine the admittance of students to the bachelorprogrammes who have not met the usual entry requirements as referred to in article 7.29 of the HigherEducation and Research Act (Dutch: WHW). The committee members are:

• Professor Bert van der Knaap (until September 2008; Professor Rien van Hoepen from September2008 (chairperson)

• Victor Beerkens, MSc (secretary)

ESE Examination BoardThe task of the ESE Examination Board is to organise and coordinate the tests and exams given in theschool’s programmes. The committee also formulates rules concerned with the proper conduct during theexams and it can provide guidelines for assessing the students. Upon request of a student, the committeecan also apply exceptional rules.

The board members are:

• Professor Bert van der Knaap (until September 2008; Professor Rien van Hoepen from September2008 (chairperson)

• Victor Beerkens, MSc (secretary)

• Eelco van Asperen, MSc

• Dr Martijn van den Assem

• Dr Ruud van den Dool

• Professor Robert Dur

• Professor Patrick Groenen

• Luit Kloosterman, MSc

• Dr Alex Koning

Advisory members:

• Bernard den Boogert, MSc

• Rena Eversen, MSc

• Rob Menheere

• Nelly Voogd

Research Advisory Board (In Dutch: VCW)The Research Advisory Board (VCW) advises the Dean about the School’s academic policy. In this contextthe committee advises about the School’s research programme and the division of research resources. Thecommittee also advises about preparations for a research assessment and the measures that are taken asa result of this assessment.In addition, the committee has an advisory role in allocating places for PhD students and in grantingadditional funding for research (PhD and fellowship-tracks, top researchers, KNAW- and EUR-fellowshipsand research awards). The committee members are:

• Professor Bert van der Knaap (chairperson)

• Professor Hans Gortemaker

• Professor Jean-Marie Viaene until April 2008, Professor Otto Swank from April onwards

• Professor Casper de Vries

• Professor Albert Wagelmans

• Guido Lafeber, MSc until November 2008, Elaine Rouwet MSc from November onwards (secretary)


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The Council for Appointments and Promotions (CBBA)The Council for Appointments and Promotions (CBBA) advises the dean about appointment matters, suchas vacancies for professors and associate professors, promotion of internal candidates to the level ofassociate professor, establishing new chairs (and endowed chairs), scouting for internal and externaltalents and attracting celebrities. Only professors can be members of the committee. A member of thePersonal & Organisation department of the Administration Office fulfills the task of a secretary.Members of the Council are:

• Professor Bert van der Knaap until May 2008 , Professor Justus Veenman from May onwards(chairperson)

• Professor Albert Wagelmans (vice chairperson)

• Professor Willem Verschoor from May 2008 (substitute vice chairperson)

• Professor Han Bleichrodt

• Professor Rommert Dekker until May 2008, Professor Peter Wakker from May onwards

• Professor Stefan Stremersch until May 2008, Professor Benedict Dellaert from May onwards

• Professor Otto Swank

• Professor Casper de Vries

• Secretary: Paulien de Charro, MA

Complaints CommitteeThe complaints committee handles written complaints that are individually submitted. The complaints canbe submitted by and against a member of the university if no other measures have already been taken inthe EUR for dealing with the complaint. The committee examines the complaint and if possible, settles it.During its examination and settlement the committee observes the confidentiality of both thecomplainant and accused party. The committee consists of the following members and substitutemembers:Members:

• Professor Patrick Groenen (chairperson)

• Wouter van den Brink, MSc

• Maarten Dorresteijn (student member)Substitute members:

• Dr Christiaan Heij

• Professor Robert Dur

• Elaine Rouwet, MSc

• Secretary: Nelly Voogd

Complaints can be submitted at the following address:Erasmus University RotterdamESE Complaint CommitteeRoom H6-02Post Box 17383000 DR Rotterdam

ESE Central Election OfficeThe ESE Central Election Office is responsible for preparing and carrying out the election of members tothe School Council. Electing members to the School Council is carried out according to the school’selection regulations. Its main tasks are to establish and announce the timeframe for the elections, theproposed candidates, ensuring an orderly election process and determining the outcome.The election of members to the school council runs parallel to the election of members to the universitycouncil. This election is implemented by the central election office of the EUR.The ESE central election office is located at H6-26 and consists of the following members:

• Professor Patrick Groenen (chairperson)

• Rena Eversen (vice chairperson)

• Elaine Rouwet, MSc (student member)

• Tineke Kurtz, MSc (secretary)


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School CouncilThe ESE council is the participatory body of the School. The council consists of fourteen members, sevenof whom are elected for a 2-year period by and from the School’s members, and seven of whom areelected for a 1-year period by and from the students studying at the ESE. The Dean informs the School’sCouncil about the policy of the ESE and about the organisational and financial plans within the School.The staff members within the School’s Council also act as joint committee where general staff policy, theapplication of working and service conditions and matters relating to working conditions are concerned.The seven student members of the School’s council make sure the student’s opinion is taken into accountin the School’s policy. In general the Council gives advice and has initiative as well as approval rights asstated in the School regulations.

For the year 2008-2009 the student members of the ESE School’s Council are:

• Paul Boxhoorn

• Steven ten Have

• Tobias Hlobil

• Sebasitian Korteweg

• Marc Slaats

• Pieter Timmermans

• Floris Vossestein

The Staff members are:

• Dr Paul de Boer

• Professor Rommert Dekker

• Nel Hofstra, MSc

• Sytske Martens

• Dr Harry Trienekens (Chair Staff members of School’s Council)

• Dr Bauke Visser


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ColofonDesign

Studio Bauman BNO, Rotterdam

Print

Service Point, EUR, Rotterdam

Edition

400

Publication

Management Team of the Erasmus School of Economics

04.2009

Erasmus University RotterdamERASMUS SCHOOL OF ECONOMICS

Visiting address

Burgemeester Oudlaan 503062 PA Rotterdam

Postal address

P.O. Box 1738 3000 DR RotterdamThe NetherlandsTelephone +31 10 408 13 77Fax +31 10 408 91 45Internet www.ese.eur.nlE-mail [email protected]

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Jaarverslag 2008

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