Discovery Early Career Researcher Award - Grant ID: DE130100806
Funder
Australian Research Council
Funding Amount
$347,620.00
Summary
Human capital risk: implications for policy. The project examines how human capital investment decisions are affected by risk and policy actions that are taken to partially alleviate these risks. The quantitative analysis provides important insights which will enhance the debate on the merits of education subsidies and unemployment benefits program in the United States and Australia.
Discovery Early Career Researcher Award - Grant ID: DE120102589
Funder
Australian Research Council
Funding Amount
$375,000.00
Summary
Monetary policy and models of money, credit and banking. This project develops models with money and credit following recent developments in monetary theory with microfoundations. The objectives of the project are to understand the fundamental functions of credit, how credit affects the aggregate economy, and how credit affects the transmission of monetary policy.
Noisy Parity Relationships in International Macroeconomic Models. Macroeconomic models of the Australian economy play a key role in the design of monetary and fiscal policy. Policymakers use these models either implicitly or explicitly, and usually begin to learn about them in principles courses. Parity relationships are foundation elements of these models, and have powerful implications for our understanding of macroeconomic dynamics. Classical statistical tests may have falsely led to an unhea ....Noisy Parity Relationships in International Macroeconomic Models. Macroeconomic models of the Australian economy play a key role in the design of monetary and fiscal policy. Policymakers use these models either implicitly or explicitly, and usually begin to learn about them in principles courses. Parity relationships are foundation elements of these models, and have powerful implications for our understanding of macroeconomic dynamics. Classical statistical tests may have falsely led to an unhealthy agnosticism regarding many of these relationships. This research will bring more appropriate statistical techniques to bear upon the problem, and if successful will restore confidence in decision-making processes and the relevance and applicability of macroeconomic models. Read moreRead less
Testing strategy-proofness in matching markets: an experimental study. This project seeks to test and improve matching algorithms by investigating the effect of advice on strategy-proofness. Matching algorithms are used to solve allocation problems in designed markets (eg school or house allocation problems). Many of the algorithms employed are strategy-proof: participants never gain from strategising, that is, from lying about their preferences. Strategy-proofness had been seemingly validated b ....Testing strategy-proofness in matching markets: an experimental study. This project seeks to test and improve matching algorithms by investigating the effect of advice on strategy-proofness. Matching algorithms are used to solve allocation problems in designed markets (eg school or house allocation problems). Many of the algorithms employed are strategy-proof: participants never gain from strategising, that is, from lying about their preferences. Strategy-proofness had been seemingly validated by experimental research, but new evidence suggests that participants could be prone to follow wrong advice and therefore lie. In order to improve the performance of designed markets, the project proposes to further test strategy-proofness by investigating how advice can affect truth-telling in strategy-proof algorithms and whether learning can counteract or complement the effect of advice.Read moreRead less
Economic policy when interest rates are zero. This Project studies economic policy when interest rates are zero. Low interest rate environments constrain monetary policy because central banks cannot lower rates to raise demand. We exploit recent international experience with zero rates to understand why new policies have had mixed success. We argue different outcomes across countries arise because of different degrees of credibility and familiarity with new policy initiatives. We provide empiric ....Economic policy when interest rates are zero. This Project studies economic policy when interest rates are zero. Low interest rate environments constrain monetary policy because central banks cannot lower rates to raise demand. We exploit recent international experience with zero rates to understand why new policies have had mixed success. We argue different outcomes across countries arise because of different degrees of credibility and familiarity with new policy initiatives. We provide empirical support for this view and study the consequences of imperfectly credible policy. We characterize how monetary policy (conventional and unconventional) and fiscal policy can be used to greatest effect in low interest rate environments and quantify the welfare implications for Australia. Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE160100104
Funder
Australian Research Council
Funding Amount
$372,000.00
Summary
Mechanism Design with Aftermarket Dynamics. This project aims to design optimal selling policies, allowing for aftermarket dynamics such as resale and inter-buyer competitions. The existence of an aftermarket greatly affects the optimal design of license auctions, procurement, franchising and the like. For instance, when market licenses are auctioned off, incumbent firms may compete fiercely for licenses they do not need simply to keep entrants out. Existing sales designs that overlook such bidd ....Mechanism Design with Aftermarket Dynamics. This project aims to design optimal selling policies, allowing for aftermarket dynamics such as resale and inter-buyer competitions. The existence of an aftermarket greatly affects the optimal design of license auctions, procurement, franchising and the like. For instance, when market licenses are auctioned off, incumbent firms may compete fiercely for licenses they do not need simply to keep entrants out. Existing sales designs that overlook such bidding incentives often underperform in practice. The project aims to examine informational policies that influence buyers’ activities to best suit the seller's objectives. It expects to help regulatory bodies to design more efficient license auctions, provide franchisors with more profitable strategies, and save taxpayers' money when procuring services.Read moreRead less
Modelling the labour market and the impact of the tax-benefit system on employment and GDP. The key national benefit from the proposed project will be development of a more informed and rigorous basis for analysing and making decisions on an important set of policy issues. The project will develop a more empirically relevant modelling framework than currently available for analysing changes in the labour market and in tax and welfare policies. The results will assist policy analysts in identifyi ....Modelling the labour market and the impact of the tax-benefit system on employment and GDP. The key national benefit from the proposed project will be development of a more informed and rigorous basis for analysing and making decisions on an important set of policy issues. The project will develop a more empirically relevant modelling framework than currently available for analysing changes in the labour market and in tax and welfare policies. The results will assist policy analysts in identifying directions for reform that can raise living standards and achieve a more egalitarian society. The project will also identify reforms required to avert an ageing crisis, and those that inhibit GDP growth due to their negative effects on female employment, household saving and fertility. Read moreRead less
Evaluation of targeting rules for implementing monetary policy. Monetary policy plays a primary role in stabilising business cycle fluctuations and in mitigating the effects of large economic shocks. This research deals with key issues in the operation of monetary policy. Our econometric analysis will provide new evidence on the short term goals pursed by central banks and improve our understanding their trade-offs. One application of our results will be an improvement in the ability to measure ....Evaluation of targeting rules for implementing monetary policy. Monetary policy plays a primary role in stabilising business cycle fluctuations and in mitigating the effects of large economic shocks. This research deals with key issues in the operation of monetary policy. Our econometric analysis will provide new evidence on the short term goals pursed by central banks and improve our understanding their trade-offs. One application of our results will be an improvement in the ability to measure and evaluate the performance of central banks. Greater evidence on the objectives and constraints of central banks will increase public knowledge and understanding of monetary policy, leading to more effective policy. Read moreRead less
A Lifecycle Approach to Labour Supply, Human Capital Accumulation and Public Policy. According to available time use data Australia has a relatively low labour supply, when compared with other major OECD countries, due primarily to low female working hours. This project will investigate the lifecycle dynamics of family labour supply decisions and human capital accumulation, to provide a more informed basis for policy debates. We therefore see the major national and community benefit as that of p ....A Lifecycle Approach to Labour Supply, Human Capital Accumulation and Public Policy. According to available time use data Australia has a relatively low labour supply, when compared with other major OECD countries, due primarily to low female working hours. This project will investigate the lifecycle dynamics of family labour supply decisions and human capital accumulation, to provide a more informed basis for policy debates. We therefore see the major national and community benefit as that of promoting Australia's rate of economic growth and ability to sustain funding for education, health and welfare, in an ageing population.Read moreRead less
Taxation, family policy and pension reform in an uncertain economy. The policies with which this research is concerned are central in determining the well being of millions of Australians in both current and future generations. It is important that these policies be debated and formulated on the basis of the best possible conceptual framework and with the most reliable possible quantitative assessments of their effects. It is also important that the policies concerned be considered jointly rathe ....Taxation, family policy and pension reform in an uncertain economy. The policies with which this research is concerned are central in determining the well being of millions of Australians in both current and future generations. It is important that these policies be debated and formulated on the basis of the best possible conceptual framework and with the most reliable possible quantitative assessments of their effects. It is also important that the policies concerned be considered jointly rather than in isolation from each other. The work will therefore directly assist policy makers in this area. Since it will be at the leading edge of current research, it will also benefit Australia's standing in the international research community.Read moreRead less