Understanding and overcoming confusion in consumer financial decisions. This project aims to develop consumer-centred approaches to reducing the harmful effects of confusion in financial decisions by studying superannuation investment and home loan decisions where confused choices are individually and collectively costly. The project intends to develop comprehensive models to capture the full complexity of financial products and the diverse preferences and capability of consumers, then to use ad ....Understanding and overcoming confusion in consumer financial decisions. This project aims to develop consumer-centred approaches to reducing the harmful effects of confusion in financial decisions by studying superannuation investment and home loan decisions where confused choices are individually and collectively costly. The project intends to develop comprehensive models to capture the full complexity of financial products and the diverse preferences and capability of consumers, then to use advanced statistical methods to estimate the benefits of clearer decision-making. The outcomes of this project includes new models of complex financial decisions, and a better understanding of where confusion arises and the effects it may have. Decreased confusion will raise financial well-being and help communities become more resilient to financial shocks.Read moreRead less
Financial decision making in late adulthood. The project aims to examine links between cognitive changes and financial decision-making in late adulthood and also to assess the preparedness of the elderly to combat financial risks due to age-related cognitive decline. Further, it intends to examine how age, education, wealth, health, and other environmental factors influence transfer of financial decision-making responsibilities to spouses or others. It is expected that the research will provide ....Financial decision making in late adulthood. The project aims to examine links between cognitive changes and financial decision-making in late adulthood and also to assess the preparedness of the elderly to combat financial risks due to age-related cognitive decline. Further, it intends to examine how age, education, wealth, health, and other environmental factors influence transfer of financial decision-making responsibilities to spouses or others. It is expected that the research will provide a greater understanding of how cognitive functioning and other factors affect older adults’ financial capacity and willingness to delegate decision-making responsibilities. This understanding could be used to inform policy initiatives to protect elderly individuals and their family members from the risk of financial mismanagement.Read moreRead less
Computational methods for solving modern asset pricing models. This project aims to solve a broad range of asset pricing models. Movements in asset prices affect private investors, public sector finances, wealth distribution and business activity levels. Economists have tried to build better models of asset prices, moving away from hyper-rationality and towards realistic features including heterogeneity, habit persistence and bounded rationality. These models’ additional complexity makes them di ....Computational methods for solving modern asset pricing models. This project aims to solve a broad range of asset pricing models. Movements in asset prices affect private investors, public sector finances, wealth distribution and business activity levels. Economists have tried to build better models of asset prices, moving away from hyper-rationality and towards realistic features including heterogeneity, habit persistence and bounded rationality. These models’ additional complexity makes them difficult to solve or to apply to real world problems. The project will use modern hardware and computational tools, insights from economics literature and numerical analysis to provide a set of solution methods for such asset pricing models. This is expected to improve policy analysis and decision making under uncertainty.Read moreRead less
Commodity cycles. The implications of resource demand by emerging markets are issues policy makers need to understand. This project address these by focusing on currency, equity and commodity linkages, the financial market and macroeconomic effects of currency collapse, and the role of emerging markets in mitigating/amplifying economic shock transmission.
Frontiers of Risk Modelling: Dependence and Extremes of Levy Processes. This project plans to continue an ongoing theoretical study into continuous-time stochastic processes, concentrating on developing tools for the further analysis and understanding of extremal and multivariate phenomena with applications to portfolio analysis, value-at risk calculations and complex financial instruments, with particular emphasis on practical applications of the methodologies in the insurance and finance indus ....Frontiers of Risk Modelling: Dependence and Extremes of Levy Processes. This project plans to continue an ongoing theoretical study into continuous-time stochastic processes, concentrating on developing tools for the further analysis and understanding of extremal and multivariate phenomena with applications to portfolio analysis, value-at risk calculations and complex financial instruments, with particular emphasis on practical applications of the methodologies in the insurance and finance industries. Expected outcomes would be of direct interest to these industries as well as having significant mathematical interest.Read moreRead less
Improving fraud detection, financial reporting quality, investor confidence and market returns by using specialist auditors. As investors, managers and auditors grapple with the global financial crisis effects, this project's findings will help them by showing how and when auditor specialisation contributes to greater financial statement quality and returns. Investors will benefit from lower audit costs, increased audit quality and more credible financial statements.
Protecting Australia’s brand assets and stakeholder interests. International accounting standards have recently been harmonised to allow firms to recognise the value of purchased brands on their balance sheets, subject to an annual test to verify that value has not been impaired. There are no widely accepted methodologies with which to undertake such tests, despite the requirement for the balance sheet to provide a true and fair view of financial position. This research will develop three approa ....Protecting Australia’s brand assets and stakeholder interests. International accounting standards have recently been harmonised to allow firms to recognise the value of purchased brands on their balance sheets, subject to an annual test to verify that value has not been impaired. There are no widely accepted methodologies with which to undertake such tests, despite the requirement for the balance sheet to provide a true and fair view of financial position. This research will develop three approaches to calibrate brand impairment and draw lessons from applying them over a three year period. The outputs are twofold: first, a suite of detailed methods for accountants, auditors and financial analysts to measure and diagnose brand value; second, several key indicators that can be used to monitor signs of brand impairment.Read moreRead less
Consequences of water reform and changing farm adaptation in the Basin. This project aims to evaluate the consequences of, and lessons learned from, the past two decades of water reform in the Murray-Darling Basin (MDB). In particular, it will examine the recent economic and farm consequences of water recovery. Australia is over halfway through implementation of the MDB Plan, and has spent over $6 billion in water recovery to achieve basin-wide resilience, with billions more still committed. Pro ....Consequences of water reform and changing farm adaptation in the Basin. This project aims to evaluate the consequences of, and lessons learned from, the past two decades of water reform in the Murray-Darling Basin (MDB). In particular, it will examine the recent economic and farm consequences of water recovery. Australia is over halfway through implementation of the MDB Plan, and has spent over $6 billion in water recovery to achieve basin-wide resilience, with billions more still committed. Project expected outcomes include pioneering new methods to track how MDB irrigation efficiency, productivity and other farm outcomes have changed as a response to water reform. It will also draw lessons from both national and international case studies to consequently inform more effective water management.Read moreRead less
Australian Laureate Fellowships - Grant ID: FL190100164
Funder
Australian Research Council
Funding Amount
$3,336,000.00
Summary
Water Justice: Indigenous Water Valuation and Resilient Decision-making . The aim is to value water and support resilient decision-making for water justice. Its significance is to provide missing socio-cultural-environmental values of First Peoples water, the absence of which means Indigenous demands for water justice are frequently ignored. Project outcomes will empower First Peoples and support resilient and evidence-based decision-making. The key benefit is a sustainable Australia through: fi ....Water Justice: Indigenous Water Valuation and Resilient Decision-making . The aim is to value water and support resilient decision-making for water justice. Its significance is to provide missing socio-cultural-environmental values of First Peoples water, the absence of which means Indigenous demands for water justice are frequently ignored. Project outcomes will empower First Peoples and support resilient and evidence-based decision-making. The key benefit is a sustainable Australia through: first-ever conjoint socio-cultural values of First Peoples’ water; transformative decision-making to account for Indigenous values and risks (such as droughts); and a Water Justice Hub to create a generation of scholars in integrated water valuation, resilient decision-making, and Traditional Water Knowledge. Read moreRead less
Policy-Related Lessons from the Econometric Analysis of Life Satisfaction Data in Australia. Our analyses will provide important information to policy-makers aiming to design policies that improve Australia's economic and social fabric. In particular, we will inform on the response of Australians to major life-events such as unemployment, ill-health or marital dissolution, but also exogenous shocks including drought and terrorism. Major focus will be on differentiating the determinants of life s ....Policy-Related Lessons from the Econometric Analysis of Life Satisfaction Data in Australia. Our analyses will provide important information to policy-makers aiming to design policies that improve Australia's economic and social fabric. In particular, we will inform on the response of Australians to major life-events such as unemployment, ill-health or marital dissolution, but also exogenous shocks including drought and terrorism. Major focus will be on differentiating the determinants of life satisfaction between rural and urban communities in Australia, and investigating the response of these communities to drought conditions. Moreover, we believe that a detailed international comparison using German and UK data will provide unique evidence on the relative quality of life in Australia and the role of culture and institutions. Read moreRead less