Banking System Competition and the Macro-economy. Australia has one of the most concentrated banking sectors in the world, generating concerns regarding its efficiency. This project aims to develop unified frameworks to understand and evaluate quantitatively how the structure of the banking industry affects the macro-economy and provide policy recommendations for establishing a healthy and efficient banking industry. This project expects to improve understanding of the welfare trade-off between ....Banking System Competition and the Macro-economy. Australia has one of the most concentrated banking sectors in the world, generating concerns regarding its efficiency. This project aims to develop unified frameworks to understand and evaluate quantitatively how the structure of the banking industry affects the macro-economy and provide policy recommendations for establishing a healthy and efficient banking industry. This project expects to improve understanding of the welfare trade-off between bank competition and economic well-being to enable policymakers to better determine the optimal concentration of banking sector in Australia. This will enhance the productivity and international competitiveness of Australia’s financial system and the broader economy.Read moreRead less
A Synthesis of Agency and Managerial Power Theories and Its Applications to Corporate Governance, Management Compensation, and Firm Performance. The existing models of corporate governance in economics and finance based on agency theory do not successfully portray all modern corporations. Thus the importance of a new and rigorous way to study corporate governance can be hardly exaggerated. This project will provide a synthesized theory of corporate governance and is expected to produce highest- ....A Synthesis of Agency and Managerial Power Theories and Its Applications to Corporate Governance, Management Compensation, and Firm Performance. The existing models of corporate governance in economics and finance based on agency theory do not successfully portray all modern corporations. Thus the importance of a new and rigorous way to study corporate governance can be hardly exaggerated. This project will provide a synthesized theory of corporate governance and is expected to produce highest-quality research publishable in top-tier journals. This will, among others, enhance Australia's standing as a knowledge nation. This project is also expected to contribute to the discussions on how to improve corporate governance and regulation of management compensation both in Australia and abroad. Read moreRead less
Natural resources and ecosystem services in productivity measurement. This project aims to understand sources of productivity growth through addressing theoretical and practical problems in the economics of natural resources and ecosystem services. It will study the valuation of non-renewable resources and ecosystem services, acknowledging their contributions to economic activity and the effect on national income from their depletion and degradation. It will develop approaches to incorporating n ....Natural resources and ecosystem services in productivity measurement. This project aims to understand sources of productivity growth through addressing theoretical and practical problems in the economics of natural resources and ecosystem services. It will study the valuation of non-renewable resources and ecosystem services, acknowledging their contributions to economic activity and the effect on national income from their depletion and degradation. It will develop approaches to incorporating natural resource depletion and degradation into productivity analysis with the aim of better informing environmental, innovation and industry policy.Read moreRead less
Multi-tier economic hierarchies: existence, structure, and optimal incentives. There exists a considerable gap between real-world economic organizations and the economic theory of the firm. This project provides formal theories of multi-tier hierarchies, thereby contributing to fill the gap. The project is expected to produce highest-quality research publishable in top-tier journals. This will, among others, enhance Australia's standing as a knowledge nation. Additional benefit comes from inter ....Multi-tier economic hierarchies: existence, structure, and optimal incentives. There exists a considerable gap between real-world economic organizations and the economic theory of the firm. This project provides formal theories of multi-tier hierarchies, thereby contributing to fill the gap. The project is expected to produce highest-quality research publishable in top-tier journals. This will, among others, enhance Australia's standing as a knowledge nation. Additional benefit comes from international collaboration with high-calibre theorists such as the two partner investigators. The project would provide opportunities for communication between Australian economists and the partner investigators, as well as a launch pad for further collaboration in the future.Read moreRead less
Decentralised assets trading, centralised clearing and systemic risk. This project aims to study the effect of regulating over-the-counter (OTC) financial markets on economic performance. The lack of transparency of OTC financial markets may have exacerbated the severity of the 2007-09 financial crisis. In response, regulators around the world decided to mandate centralised clearing of derivatives traded OTC, believing this would reduce system-wide risk. This project will study the regulatory ch ....Decentralised assets trading, centralised clearing and systemic risk. This project aims to study the effect of regulating over-the-counter (OTC) financial markets on economic performance. The lack of transparency of OTC financial markets may have exacerbated the severity of the 2007-09 financial crisis. In response, regulators around the world decided to mandate centralised clearing of derivatives traded OTC, believing this would reduce system-wide risk. This project will study the regulatory change’s effects on market participation, volumes of trade and prices, and the behavioural effect of shifting risk from market participants to clearinghouses. It expects to suggest remedial policies clearinghouses could implement to control market participants’ risk appetite. These can help enhance future productivity and reduce unemployment in Australia.Read moreRead less