Decentralised assets trading, centralised clearing and systemic risk. This project aims to study the effect of regulating over-the-counter (OTC) financial markets on economic performance. The lack of transparency of OTC financial markets may have exacerbated the severity of the 2007-09 financial crisis. In response, regulators around the world decided to mandate centralised clearing of derivatives traded OTC, believing this would reduce system-wide risk. This project will study the regulatory ch ....Decentralised assets trading, centralised clearing and systemic risk. This project aims to study the effect of regulating over-the-counter (OTC) financial markets on economic performance. The lack of transparency of OTC financial markets may have exacerbated the severity of the 2007-09 financial crisis. In response, regulators around the world decided to mandate centralised clearing of derivatives traded OTC, believing this would reduce system-wide risk. This project will study the regulatory change’s effects on market participation, volumes of trade and prices, and the behavioural effect of shifting risk from market participants to clearinghouses. It expects to suggest remedial policies clearinghouses could implement to control market participants’ risk appetite. These can help enhance future productivity and reduce unemployment in Australia.Read moreRead less
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.
Australian Laureate Fellowships - Grant ID: FL120100034
Funder
Australian Research Council
Funding Amount
$2,002,560.00
Summary
Black swans and unknown unknowns: financial markets and their interaction with the macroeconomy in the presence of unanticipated contingencies. Unforeseen contingencies, also called 'black swans' or 'unknown unknowns' pose serious difficulties for decisionmakers. This project will examine how financial regulation can be improved to reduce the vulnerability of the financial system and the macroeconomy to unforeseen shocks.
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
Economic efficiency and the provision of incentives for information acquisition and disclosure: a mechanism design approach. By uncovering what determines information acquisition, highlighting what allows experts and insiders to manipulate market outcomes, and studying the efficiency gains obtainable with the use of a variety of incentives schemes, this research will provide valuable insights for public policy concerning information diffusion and market transparency.
Resilient Democracy for the 21st Century. This project will establish novel foundational theoretical frameworks for the design of democratic institutions that can withstand internal and external pressure towards autocratisation. It will develop state of the art dynamic models of information manipulation and political dynamics, and analyse large-scale online survey experiments, as well as contemporary and historical data. This combination will deliver new insights into the management of sensitive ....Resilient Democracy for the 21st Century. This project will establish novel foundational theoretical frameworks for the design of democratic institutions that can withstand internal and external pressure towards autocratisation. It will develop state of the art dynamic models of information manipulation and political dynamics, and analyse large-scale online survey experiments, as well as contemporary and historical data. This combination will deliver new insights into the management of sensitive information and how to protect democracy from information manipulation. Ultimately, the project will generate a body of theoretical and empirical evidence for the design of more effective and resilient democratic institutions for a more inclusive economic development. Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE200100590
Funder
Australian Research Council
Funding Amount
$416,154.00
Summary
Optimal policy and mechanism design in education and labour markets. This project aims to investigate the optimal design and efficiency implications of education and labour market policies such as differential treatment in school assignment, university admissions, hiring and promotions within organisations. The project expects to develop novel theoretical models of public policy using techniques from information economics and mechanism design. The expected outcomes of this project include an enh ....Optimal policy and mechanism design in education and labour markets. This project aims to investigate the optimal design and efficiency implications of education and labour market policies such as differential treatment in school assignment, university admissions, hiring and promotions within organisations. The project expects to develop novel theoretical models of public policy using techniques from information economics and mechanism design. The expected outcomes of this project include an enhanced capacity to design policies and a new conceptual framework to assess their efficiency. This should enable policymakers and organisations to implement more efficient policies, and inform public debates on the merits of preferential treatment, gender equity policies and other education and labour market policies. 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.
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