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
Banks, endogenous network formations and financial crisis. This project aims to understand how endogenous network formations affect financial crisis and how such situations can be made into a coherent microeconomic model of financial network formations using modern tools in economics. The project intends to study the properties of financial systems in the presence of possible financial crisis, conduct applied economic policy analysis and provide policy implications for lifting productivity and e ....Banks, endogenous network formations and financial crisis. This project aims to understand how endogenous network formations affect financial crisis and how such situations can be made into a coherent microeconomic model of financial network formations using modern tools in economics. The project intends to study the properties of financial systems in the presence of possible financial crisis, conduct applied economic policy analysis and provide policy implications for lifting productivity and economic growth. The projects expected outcomes would contribute to the theoretical understanding of financial crisis and consequences in financial markets as well as the economy and public policy. In the longer term, the project should benefit the health of the financial system.Read moreRead less
International coalitions for climate change mitigation: the role of carbon market linkages and trade restrictions. This project uses cooperative game theory, implementation theory and agent-based modelling to investigate how coalitions to reduce greenhouse gas emissions could be formed and maintained among countries. Applications include the role of carbon market linkage and trade policy, in countries of the Asia-Pacific region.
Monetary-fiscal policy interactions and their effect on economic performance: new theory, empirics, and an application to Australia. Both fiscal and monetary policy are powerful tools that affect the wellbeing of individuals. Even if current policies are 'responsible', the social cost of uncertainty about the future is extremely high - to which the 2004 'high interest rates under Labour' election campaign or current heated fiscal debates in the US and EU testify. Our analysis will contribute to ....Monetary-fiscal policy interactions and their effect on economic performance: new theory, empirics, and an application to Australia. Both fiscal and monetary policy are powerful tools that affect the wellbeing of individuals. Even if current policies are 'responsible', the social cost of uncertainty about the future is extremely high - to which the 2004 'high interest rates under Labour' election campaign or current heated fiscal debates in the US and EU testify. Our analysis will contribute to the reduction of the social cost by identifying the institutional setting that is robust to 'bad' policymakers, i.e. one in which socially optimal policies are 'institutionalized' (legislated) rather than resting with individuals. Such arrangements are further likely to stimulate investment and economic growth.Read moreRead less
Solving and estimating dynamic models of strategic interaction. This project aims to investigate how firms interact with each other through time and how these interactions drive both the operation of, and value created in, economic markets. While recent theoretical models predominantly capture the complexity of these dynamic interactions, the methods for testing these models’ predictions against observed data do not. Instead, they are based on a range of simplifying assumptions that undermine th ....Solving and estimating dynamic models of strategic interaction. This project aims to investigate how firms interact with each other through time and how these interactions drive both the operation of, and value created in, economic markets. While recent theoretical models predominantly capture the complexity of these dynamic interactions, the methods for testing these models’ predictions against observed data do not. Instead, they are based on a range of simplifying assumptions that undermine the reliability of their analysis. This project will develop statistical and computational methods to better understand observed economic behaviour. By allowing the effects of proposed economic interventions and regulations ex ante, this project will support the development of more efficient and better-targeted policies in every area of the economy.Read moreRead less
A Neo-Heckscher-Ohlin Model of Trade with Endogenous Production Patterns. The ongoing debate regarding the expected benefits of the recent trade agreement with the United States exemplifies that few aspects of international trade are well understood. Using inframarginal analysis, an approach developed by co-investigator 1, we expect to be able to advance our understanding in this field by producing what is arguably the most generalised model of trade. This will constitute an important accomplish ....A Neo-Heckscher-Ohlin Model of Trade with Endogenous Production Patterns. The ongoing debate regarding the expected benefits of the recent trade agreement with the United States exemplifies that few aspects of international trade are well understood. Using inframarginal analysis, an approach developed by co-investigator 1, we expect to be able to advance our understanding in this field by producing what is arguably the most generalised model of trade. This will constitute an important accomplishment that is likely to attract both international academic interest and international research funds to Australian research. In addition, as our model will be calibrated on the basis of our domestic production characteristics, our work will shed light on the socially optimum trade policy directions for Australia.Read moreRead less
Inductive game theory: experiential knowledge, interactions, and limited inferences in social contexts. This research project stresses the importance of limited experiences and limited inferential abilities for explaining differences observed across individuals and groups in society. The project will use inductive game theory to attack problems and conflicts between individuals and groups based on such limitations.
General market equilibrium analysis of securitisable assets in the presence of private information, when contracts are incomplete. Three key markets (among others) were involved in the gestation of the worst financial crisis seen since the great depression: the market for mortgages and the market for securities, backed by mortgages and housing market. The focus of this project is to examine financial fragility in such markets, theoretically applying outcomes to Australian policy.
Discovery Early Career Researcher Award - Grant ID: DE130101768
Funder
Australian Research Council
Funding Amount
$368,777.00
Summary
Bank regulation: the implications of interconnectedness and adaptive behaviour. People often use rules of thumb in deciding which actions to take. By modelling people in this way this project seeks to determine the effects that different forms of bank regulation have in determining the frequency and scale of banking crises.
A robust approach to designing mechanisms for budget constrained agents. This project aims to study the design of robust implementable allocation mechanisms for agents who face financial constraints. Financial constraints are important for housing markets, big business auctions and government procurement. Yet their effect on the performance of allocation policies is not well understood. The project intends to develop a general and tractable framework of allocation mechanisms that are implementab ....A robust approach to designing mechanisms for budget constrained agents. This project aims to study the design of robust implementable allocation mechanisms for agents who face financial constraints. Financial constraints are important for housing markets, big business auctions and government procurement. Yet their effect on the performance of allocation policies is not well understood. The project intends to develop a general and tractable framework of allocation mechanisms that are implementable without deficits. The project will adapt this framework to the study of revenue-maximising multi-object auctions with complementarities, and to house allocation problems and related situations where efficiency and priority assignments are important considerations. The project expects to provide policy insights and implications relevant to the Australian housing market.Read moreRead less