Financial development, liberalisation and productivity growth. The analysis performed in this project will provide some new insights into the role of financial policies in bolstering productivity growth. This issue deserves more attention from the policy circle given that a better understanding of the mechanisms by which finance affects growth performance allows policy makers to evaluate the costs and benefits associated with liberalising and deepening the financial systems, thus enabling the fo ....Financial development, liberalisation and productivity growth. The analysis performed in this project will provide some new insights into the role of financial policies in bolstering productivity growth. This issue deserves more attention from the policy circle given that a better understanding of the mechanisms by which finance affects growth performance allows policy makers to evaluate the costs and benefits associated with liberalising and deepening the financial systems, thus enabling the formulation of effective financial policies. This understanding is critical to achieve the Australian policy makers' objective of promoting financial stability and strengthening growth.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
Does Australian Corporate Taxation Matter? On a GDP-weighted basis the average OECD corporate rate has fallen from 44 percent in 1985 to 31 percent in 2004. Australia operates a flat thirty percent corporate tax rate and this compares well with the current OECD average. Yet, the Business Council of Australia argues that the Australian corporate tax rate is 'uncompetitive'. Certainly, the corporate tax burden (i.e. corporate tax revenue as a proportion of GDP) is very high in Australia, the thi ....Does Australian Corporate Taxation Matter? On a GDP-weighted basis the average OECD corporate rate has fallen from 44 percent in 1985 to 31 percent in 2004. Australia operates a flat thirty percent corporate tax rate and this compares well with the current OECD average. Yet, the Business Council of Australia argues that the Australian corporate tax rate is 'uncompetitive'. Certainly, the corporate tax burden (i.e. corporate tax revenue as a proportion of GDP) is very high in Australia, the third highest in the OECD, and the highest in the Asia-Pacific region. This project will evaluate the extent that the corporate tax burden is a hinderance to Australian firms and economic behaviour. Read moreRead less
Consumption Volatility and Financial Openness in the Developing World. The analysis performed in this project will shed some light on how financial openness affects consumption volatility in developing countries. The results of this project have direct relevance for the formulation of financial sector policies in developing countries as well as Australia, given its close association with the developing world. Designing appropriate financial sector policies helps promote financial stability, and ....Consumption Volatility and Financial Openness in the Developing World. The analysis performed in this project will shed some light on how financial openness affects consumption volatility in developing countries. The results of this project have direct relevance for the formulation of financial sector policies in developing countries as well as Australia, given its close association with the developing world. Designing appropriate financial sector policies helps promote financial stability, and this exerts a beneficial effect on economic growth. This is broadly in line with the Australian policy makers' objective of promoting growth and enhancing stability.Read moreRead less
New Directions in Information Economics and Environmental Policy. Recent developments in economic theory, experimental economics, information systems and biophysical modelling have made possible a new generation of policy instruments that can be applied in environmental economics. A recent pilot study of biodiversity preservation auctions in Victoria has demonstrated the practicality in principle of these techniques. We will build on this pilot study to develop practical policy instruments based ....New Directions in Information Economics and Environmental Policy. Recent developments in economic theory, experimental economics, information systems and biophysical modelling have made possible a new generation of policy instruments that can be applied in environmental economics. A recent pilot study of biodiversity preservation auctions in Victoria has demonstrated the practicality in principle of these techniques. We will build on this pilot study to develop practical policy instruments based on these principles.Read moreRead less
The Distributional Impact of Health Outlays: Developing the Research and Modelling Infrastructure for Policy Makers. The Commonwealth recently concluded that the projected increase in health outlays over the next few decades is unaffordable. Policy makers are therefore going to face difficult decisions about health funding, the balance between government and consumer contributions to health costs, and about taxes (which fund public health outlays). They do not currently have adequate modelling t ....The Distributional Impact of Health Outlays: Developing the Research and Modelling Infrastructure for Policy Makers. The Commonwealth recently concluded that the projected increase in health outlays over the next few decades is unaffordable. Policy makers are therefore going to face difficult decisions about health funding, the balance between government and consumer contributions to health costs, and about taxes (which fund public health outlays). They do not currently have adequate modelling tools to help them make sound decisions. This project aims to redress this situation, by constructing a microsimulation model of the health sector, with a capacity to assess the likely distributional impact of possible policy changes and their revenue or expenditure implications.Read moreRead less