Designing Weather Derivatives and Yield Index Contracts for Rural Australia. This project addresses the security of communities in rural areas. Successful risk management based on weather derivatives and yield index contracts will stabilise the income of rural industries and improve the financial viability of rural communities. It will allow systemic risks from climate change to be reinsured with financial institutions, maintain some of Australia's most important export industries and help maint ....Designing Weather Derivatives and Yield Index Contracts for Rural Australia. This project addresses the security of communities in rural areas. Successful risk management based on weather derivatives and yield index contracts will stabilise the income of rural industries and improve the financial viability of rural communities. It will allow systemic risks from climate change to be reinsured with financial institutions, maintain some of Australia's most important export industries and help maintain leadership in climate risk research. It will use state of the art methods to derive and estimate nonlinear yield indexes, and develop new option pricing methods to value the premium that farmers should pay for a yield index contract. Finally it will evaluate the likely adoption by farmers using nonlinear portfolio theory.Read moreRead less
Household mortgage choice: theoretical and empirical evidence. A house is often the largest component of household assets, and financing its purchase involves choosing a mortgage product from many alternatives. Inefficiencies and incompleteness in mortgage markets have important consequences. This project uncovers theoretical and empirical evidence on why Australians choose particular mortgage products.
The Management of Asymmetric Risk in a Modern Investment Portfolio. Due to compulsory superannuation legislation, the future lifestyle of all Australians is dependent upon the successful management of investment funds. A large component of funds management is risk management. This project will generate practical management tools to enable portfolio managers to significantly enhance their risk-management strategies. A direct link between risk management and performance drives funds managers to ....The Management of Asymmetric Risk in a Modern Investment Portfolio. Due to compulsory superannuation legislation, the future lifestyle of all Australians is dependent upon the successful management of investment funds. A large component of funds management is risk management. This project will generate practical management tools to enable portfolio managers to significantly enhance their risk-management strategies. A direct link between risk management and performance drives funds managers to carefully manage their risk exposure. Any developments that reduce the risk of a portfolio will ultimately enhance portfolio returns. Higher returns on superannuation investments will result in an improved future standard of living for all Australians.Read moreRead less
Endgame: managing superannuation in later life. This project aims to come up with strategies for improving superannuation advice for the elderly - including retirees, and also those on the cusp of retirement, who often have little or no scope for working harder or longer to restore their finances. It applies recent developments in financial economics to improve the quality of financial planning advice.
Information Content of Order Flows in the Foreign Exchange and Commodities Markets. The Australian economy depends heavily on resources and commodities markets. The Australian dollar is the sixth most actively traded currency in the world and is more volatile than all other major currencies except the Japanese yen. The proposed study seeks to improve volatility forecasts and hedging effectiveness for foreign exchange and commodity risks, which will create significant benefits for the Australian ....Information Content of Order Flows in the Foreign Exchange and Commodities Markets. The Australian economy depends heavily on resources and commodities markets. The Australian dollar is the sixth most actively traded currency in the world and is more volatile than all other major currencies except the Japanese yen. The proposed study seeks to improve volatility forecasts and hedging effectiveness for foreign exchange and commodity risks, which will create significant benefits for the Australian economy, corporations, and investors. In addition, the project will enhance investment performance and risk management practice of financial institutions, improving the overall safety of our financial system. It will also foster research culture and increase research capacity of Australian financial institutions.Read moreRead less
Modelling non-linear price dynamics of primary commodities that are affected by seasonality, significant storage costs, and slow adjustment. Australia's economy relies substantially on exports of commodities. However, recent volatility of commodity prices has created tremendous uncertainties for traders, producers and consumers of those commodities. This adversely affects our national economy through the disruption of agricultural and mining production, and also more broadly impacts on investmen ....Modelling non-linear price dynamics of primary commodities that are affected by seasonality, significant storage costs, and slow adjustment. Australia's economy relies substantially on exports of commodities. However, recent volatility of commodity prices has created tremendous uncertainties for traders, producers and consumers of those commodities. This adversely affects our national economy through the disruption of agricultural and mining production, and also more broadly impacts on investment, employment and gross domestic income. This research will model more accurately the complex dynamics of primary commodity prices and their inter-market linkages, which will allow traders, producers and consumers to better forecast commodity price movements and protect themselves through inventory management, hedging and long-run production planning.Read moreRead less
Modelling the Quality of Hospital Care in Australia. It is estimated that substandard quality of hospital care causes around 4,500 deaths and 12,500 cases of permanent disability per year. Results from the study will support the implementation of quality control programs to help prevent unnecessary harm to patients, improve the quality of hospital care, and more generally, promote the objectives of the Australian health care system. The envisaged outcomes advance national research priorities by ....Modelling the Quality of Hospital Care in Australia. It is estimated that substandard quality of hospital care causes around 4,500 deaths and 12,500 cases of permanent disability per year. Results from the study will support the implementation of quality control programs to help prevent unnecessary harm to patients, improve the quality of hospital care, and more generally, promote the objectives of the Australian health care system. The envisaged outcomes advance national research priorities by improving health care provided to children and the elderly. The Fellowship will help alleviate the shortage of health economists in Australia by improving my own skills and supporting me to train junior staff.Read moreRead less
How do macroeconomic fluctuations affect the educational choices of young Australians? The 1990-1991 recession, recent evidence, and econometric issues. The educational choices of young people are crucial for any nation's future. The project's empirical findings will inform public policy, particularly in the areas of education and training and youth unemployment. The research will help policy makers target people who need extra support in tough times and help determine the demand for different k ....How do macroeconomic fluctuations affect the educational choices of young Australians? The 1990-1991 recession, recent evidence, and econometric issues. The educational choices of young people are crucial for any nation's future. The project's empirical findings will inform public policy, particularly in the areas of education and training and youth unemployment. The research will help policy makers target people who need extra support in tough times and help determine the demand for different kinds of education. The findings have implications for future policies aimed at reducing inequality. The project's methodological contributions will lead to better and more reliable research in economics and other fields such as biology and engineering. The findings will be suitable for the top economics journals and contribute to Australia's standing in the academic community.Read moreRead less