Australian Laureate Fellowships - Grant ID: FL120100034
Funder
Australian Research Council
Funding Amount
$2,002,560.00
Summary
Black swans and unknown unknowns: financial markets and their interaction with the macroeconomy in the presence of unanticipated contingencies. Unforeseen contingencies, also called 'black swans' or 'unknown unknowns' pose serious difficulties for decisionmakers. This project will examine how financial regulation can be improved to reduce the vulnerability of the financial system and the macroeconomy to unforeseen shocks.
'Fixed points': extending and deepening our understanding of mathematical and computational aspects of game theory. This work will extend and deepen our understanding of mathematical and computational aspects of game theory. It will produce computer code embodying new methods of solving systems of nonlinear equations, which is useful in many areas of applied research in economics, in other disciplines such as chemistry, and potentially in the analysis of business operations. The project will a ....'Fixed points': extending and deepening our understanding of mathematical and computational aspects of game theory. This work will extend and deepen our understanding of mathematical and computational aspects of game theory. It will produce computer code embodying new methods of solving systems of nonlinear equations, which is useful in many areas of applied research in economics, in other disciplines such as chemistry, and potentially in the analysis of business operations. The project will also deepen our understanding of the underlying mathematics of such systems, and of other mathematical foundations of economic research. One application will be a new measure of the relative power resulting from voting rules. Such measures assist the design of democratic institutions by allowing the designer to assess the fairness of the outcomes they produce.Read moreRead less
Using Heart Rate Variability measurements to identify the effects of stress on decision making. Rationality and the willingness to cooperate is an important aspect of human decision making. Research shows that certain decisions not only cause stress but are also affected by it. Using modern mobile heart rate monitors, we are able to measure causes and consequences of stress in a controlled and natural environment. This research will help to provide better workplace environments by helping to des ....Using Heart Rate Variability measurements to identify the effects of stress on decision making. Rationality and the willingness to cooperate is an important aspect of human decision making. Research shows that certain decisions not only cause stress but are also affected by it. Using modern mobile heart rate monitors, we are able to measure causes and consequences of stress in a controlled and natural environment. This research will help to provide better workplace environments by helping to design better organisations, decreasing the probability of workplace accidents, and advising employees how to better use their talents. This research also helps put Australia on the forefront of modern economic research that aims to open the ultimate "black box" of human decision making.Read moreRead less
Epistemically feasible choice: implications for sustainable risk management. The aim of this project is to examine procedural decision principles that will yield better choices in circumstances where, because of epistemic limitations, standard decision theory provides an inadequate guide. Individuals and policy-makers must make decisions even though they cannot be fully aware of all of the relevant possibilities or fully understand consequences they have not yet experienced. Examples include ind ....Epistemically feasible choice: implications for sustainable risk management. The aim of this project is to examine procedural decision principles that will yield better choices in circumstances where, because of epistemic limitations, standard decision theory provides an inadequate guide. Individuals and policy-makers must make decisions even though they cannot be fully aware of all of the relevant possibilities or fully understand consequences they have not yet experienced. Examples include individual decisions about marriage and childbearing, public policy decisions about complex environmental problems and decisions on funding scientific research. The expected outcome of the project will be a formal model of decision theory incorporating principles of resilience, sustainability and transformative experience.Read moreRead less
State-contingent analysis of productivity, efficiency and innovation. Productivity growth is a fundamental precondition for sustainable improvements in living standards. The main drivers of productivity growth are technological innovation and improvements in the efficiency of resource use. Effective public policy in this area requires identification of these components. This project develops improved productivity measurement methods that are applicable in economic environments characterised b ....State-contingent analysis of productivity, efficiency and innovation. Productivity growth is a fundamental precondition for sustainable improvements in living standards. The main drivers of productivity growth are technological innovation and improvements in the efficiency of resource use. Effective public policy in this area requires identification of these components. This project develops improved productivity measurement methods that are applicable in economic environments characterised by production and/or demand uncertainty. The methods will be used to obtain improved estimates of rates of innovation and changes in the relative efficiency of selected Australian enterprises. The empirical results will inform National Competition Policy and the process of microeconomic reform.Read moreRead less
Risk and Australian public policy. This project will develop fundamentally new approaches to the theory of risk and uncertainty and their role in the design and management of complex projects and policy initiatives. The results will be applied to the central economic policy choices facing Australia; those connected with globalisation and microeconomic reform. This project will show how the latest advances in economic theory can help to illuminate the major issues in the Australian public debate, ....Risk and Australian public policy. This project will develop fundamentally new approaches to the theory of risk and uncertainty and their role in the design and management of complex projects and policy initiatives. The results will be applied to the central economic policy choices facing Australia; those connected with globalisation and microeconomic reform. This project will show how the latest advances in economic theory can help to illuminate the major issues in the Australian public debate, from the role of government and the market to the assessment of standards of living. The project will also help to bridge the gap between economics and other social sciences.Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE180100190
Funder
Australian Research Council
Funding Amount
$363,996.00
Summary
Auction design with behavioural bidders. This project aims to incorporate behavioural elements from psychology into the economic analysis of auctions. The project will address discrepancies between traditional economic analysis of auctions based on fully rational bidders, and evidence from psychology and behavioural economics which demonstrates systemic departures from rational decision-making. This will expand realism in economic analysis and contribute new insights for the design of relevant, ....Auction design with behavioural bidders. This project aims to incorporate behavioural elements from psychology into the economic analysis of auctions. The project will address discrepancies between traditional economic analysis of auctions based on fully rational bidders, and evidence from psychology and behavioural economics which demonstrates systemic departures from rational decision-making. This will expand realism in economic analysis and contribute new insights for the design of relevant, real-world auctions such as real-estate auctions or internet auctions. The project outcomes are expected to enhance the efficient allocation of resources, improve our understanding of how different rules affect buyers' well-being and help design fairer auctions.Read moreRead less
Heterogeneity, Wage Inequality, Unemployment, and Economic Growth. This project would provide the first internally consistent theory of wage inequality, unemployment and economic growth - and the roles that government policy variables play in determining them. It would use and extend frontier developments in theory, and identify the settings of policy variables (unemployment insurance, tax structures, education policies) that maximise social welfare, given that governments must satisfy their bud ....Heterogeneity, Wage Inequality, Unemployment, and Economic Growth. This project would provide the first internally consistent theory of wage inequality, unemployment and economic growth - and the roles that government policy variables play in determining them. It would use and extend frontier developments in theory, and identify the settings of policy variables (unemployment insurance, tax structures, education policies) that maximise social welfare, given that governments must satisfy their budget constraints. It also aims to uncover the relationship between the innate abilities of workers and their education choices - and the consequences for macro economies and public policy.Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE120102640
Funder
Australian Research Council
Funding Amount
$375,000.00
Summary
Behavioural foundations of economic design for an uncertain world. The aim of this project is to incorporate behavioural foundations into mechanism design to improve our understanding of economic institutions in incomplete information environments. To accomplish this goal, it considers a framework where agents have reference-dependent preferences and explores implications of this assumption for economic design.
Legitimacy and representation: A comprehensive study of electoral systems and strategic voting behaviour. What makes a good electoral system? How can it reflect the preference of the majority while guaranteeing representation to minorities? Should voting be voluntary or mandatory? These are very relevant questions for any democracy, but particularly so for Australia: a country which has always been at the forefront of the electoral debate, that proudly strives to represent with fairness all sect ....Legitimacy and representation: A comprehensive study of electoral systems and strategic voting behaviour. What makes a good electoral system? How can it reflect the preference of the majority while guaranteeing representation to minorities? Should voting be voluntary or mandatory? These are very relevant questions for any democracy, but particularly so for Australia: a country which has always been at the forefront of the electoral debate, that proudly strives to represent with fairness all sectors of its very diverse society and where voting is not only a citizen's right, but also her duty. By approaching these issues in a game theoretic framework, this project proposes to investigate the strategic nature of voting through a comprehensive study of electoral systems. The project will then test our theoretical predictions through a series of laboratory experiments. Read moreRead less