Financial decision making in late adulthood. The project aims to examine links between cognitive changes and financial decision-making in late adulthood and also to assess the preparedness of the elderly to combat financial risks due to age-related cognitive decline. Further, it intends to examine how age, education, wealth, health, and other environmental factors influence transfer of financial decision-making responsibilities to spouses or others. It is expected that the research will provide ....Financial decision making in late adulthood. The project aims to examine links between cognitive changes and financial decision-making in late adulthood and also to assess the preparedness of the elderly to combat financial risks due to age-related cognitive decline. Further, it intends to examine how age, education, wealth, health, and other environmental factors influence transfer of financial decision-making responsibilities to spouses or others. It is expected that the research will provide a greater understanding of how cognitive functioning and other factors affect older adults’ financial capacity and willingness to delegate decision-making responsibilities. This understanding could be used to inform policy initiatives to protect elderly individuals and their family members from the risk of financial mismanagement.Read moreRead less
Understanding macroeconomic fluctuations with unobserved networks. Whilst empirical evidence suggests that firm-level shocks can have large aggregate effects, via network connections, macroeconomic policies have mostly an aggregate nature. This project aims to build a new framework to disentangle aggregate shocks from shocks to individual units. The major innovations are i) to infer the network from the data and ii) to jointly estimate aggregate factors and network effects. Expected outcomes are ....Understanding macroeconomic fluctuations with unobserved networks. Whilst empirical evidence suggests that firm-level shocks can have large aggregate effects, via network connections, macroeconomic policies have mostly an aggregate nature. This project aims to build a new framework to disentangle aggregate shocks from shocks to individual units. The major innovations are i) to infer the network from the data and ii) to jointly estimate aggregate factors and network effects. Expected outcomes are i) measures of systemic risk and ii) a theoretical framework to study the optimality of aggregate versus sectoral stabilization policies. Benefits include a better understanding of macroeconomic fluctuations in Australia and proposed economic policies to mitigate large and persistent declines in employment and GDP.Read moreRead less
Banks, endogenous network formations and financial crisis. This project aims to understand how endogenous network formations affect financial crisis and how such situations can be made into a coherent microeconomic model of financial network formations using modern tools in economics. The project intends to study the properties of financial systems in the presence of possible financial crisis, conduct applied economic policy analysis and provide policy implications for lifting productivity and e ....Banks, endogenous network formations and financial crisis. This project aims to understand how endogenous network formations affect financial crisis and how such situations can be made into a coherent microeconomic model of financial network formations using modern tools in economics. The project intends to study the properties of financial systems in the presence of possible financial crisis, conduct applied economic policy analysis and provide policy implications for lifting productivity and economic growth. The projects expected outcomes would contribute to the theoretical understanding of financial crisis and consequences in financial markets as well as the economy and public policy. In the longer term, the project should benefit the health of the financial system.Read moreRead less