Financial crises, volatility and sovereign ratings: Do ratings really matter when they are needed most? The stability of Australian financial markets during the Asian financial crisis is a major economic success story. Subsequently, an important policy objective has been in enhancing the capacity of the financial infrastructure in regional financial markets to reduce their exposure to such crises. Recent financial market turmoil dramatically underscores the need to better understand the full myr ....Financial crises, volatility and sovereign ratings: Do ratings really matter when they are needed most? The stability of Australian financial markets during the Asian financial crisis is a major economic success story. Subsequently, an important policy objective has been in enhancing the capacity of the financial infrastructure in regional financial markets to reduce their exposure to such crises. Recent financial market turmoil dramatically underscores the need to better understand the full myriad of factors that feed into this challenging concern. One critical area of debate is whether or not rating agencies play a calming role. This project will deliver insights that aid development of the financial infrastructure to cope better with such crises and retain investor confidence.Read moreRead less
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
Investing over the Life Cycle. This project will investigate efficiency questions raised by the private and public management of assets within defined contribution pension plans. Because investment risk in such plans falls on the contributing household, they need to be managed with care. The first phase of the project will examine optimal equity investments on behalf of contributing households. The second phase will consider the scope and limits of market-timing endeavours involving switches bet ....Investing over the Life Cycle. This project will investigate efficiency questions raised by the private and public management of assets within defined contribution pension plans. Because investment risk in such plans falls on the contributing household, they need to be managed with care. The first phase of the project will examine optimal equity investments on behalf of contributing households. The second phase will consider the scope and limits of market-timing endeavours involving switches between broad asset classes. The third phase will consider optimal currency hedging. The final phase will consider the optimal taxation of pension fund assets at different points in the household's life cycle.Read moreRead less
Risk Management for Bonds, Currencies and Commodities. Understanding maturity-structure policy is a neglected topic. It needs research before we can determine whether public debt policy should accommodate the emerging needs of self-funded retirees - for long-term debt, new issues of index bonds, and 'survivor' bonds. Planning for annuity-rate risk has lagged far behind the sales of complying pensions. Over 2003 the Australian dollar rose by 34 percent, revealing major deficiencies in the standar ....Risk Management for Bonds, Currencies and Commodities. Understanding maturity-structure policy is a neglected topic. It needs research before we can determine whether public debt policy should accommodate the emerging needs of self-funded retirees - for long-term debt, new issues of index bonds, and 'survivor' bonds. Planning for annuity-rate risk has lagged far behind the sales of complying pensions. Over 2003 the Australian dollar rose by 34 percent, revealing major deficiencies in the standard advice on managing currency risks to retirement incomes. Uninsured disruptions to electricity supply have been an issue (eg in California), and demonstrate a need for innovative financial instruments that cushion and spread the costs.Read moreRead less
Security in Retirement: Forecasting and Managing Macro Investment Risks. In his Boyer Lectures Ian Macfarlane, former RBA governor, observed that risks once borne by employers or governments are in the process of being transferred to households. Retirement incomes are a case in point. Not only do most households belong to accumulation funds which shift investment risks to members, but exposure to growth assets (equities and property) in the typical account is in the 60% - 70% range, even in the ....Security in Retirement: Forecasting and Managing Macro Investment Risks. In his Boyer Lectures Ian Macfarlane, former RBA governor, observed that risks once borne by employers or governments are in the process of being transferred to households. Retirement incomes are a case in point. Not only do most households belong to accumulation funds which shift investment risks to members, but exposure to growth assets (equities and property) in the typical account is in the 60% - 70% range, even in the case of retirees. Our project will focus on the forecasting and management of economy-wide risks, as distinct from the equity risks or credit risks attached to investments in particular companies.Read moreRead less
Novel Metal Carbide Catalysts For Gas-To-Liquid Conversion Processes. The development of efficient gas-to-liquid fuels processes is driven by the availability of abundant natural gas reserves and environmental advantages of synthetic liquid fuels. In this study, a new molybdenum-tungsten carbide catalyst that with excellent performance but 80 times cheaper than noble metal catalysts is proposed. It is especially attractive for industrial applications because it can be used for steam reforming of ....Novel Metal Carbide Catalysts For Gas-To-Liquid Conversion Processes. The development of efficient gas-to-liquid fuels processes is driven by the availability of abundant natural gas reserves and environmental advantages of synthetic liquid fuels. In this study, a new molybdenum-tungsten carbide catalyst that with excellent performance but 80 times cheaper than noble metal catalysts is proposed. It is especially attractive for industrial applications because it can be used for steam reforming of natural gas to synthesis gas, and subsequent conversion to gasoline. This represents huge cost savings in catalyst and energetically-efficient reactors in the global petrochemical industry where millions of dollars are spent annually on catalyst improvement and rehabilitation.Read moreRead less
Local scour below offshore pipelines on calcareous sediments. This project will improve predictions of erosion around subsea structures in calcareous sediment, allowing potential pipeline self-burial. This will reduce the considerable costs currently spent on pipeline stabilisation and increase the viability of Australia's offshore resources and the competitiveness of the Australian oil and gas industry.
Cyclic Fatigue Mechanisms in New Lead-Free Piezoelectric Ceramics. Piezoceramics are an important component in many items in modern day Australian life. However, they present a growing environmental concern, particularly for disposal, because they contain lead oxide and must often be disposed of prematurely due to component failure. Furthermore, many key Australian industries manufacture and use piezoceramics in fields ranging from mineral exploration, to imaging to biomedical devices. This proj ....Cyclic Fatigue Mechanisms in New Lead-Free Piezoelectric Ceramics. Piezoceramics are an important component in many items in modern day Australian life. However, they present a growing environmental concern, particularly for disposal, because they contain lead oxide and must often be disposed of prematurely due to component failure. Furthermore, many key Australian industries manufacture and use piezoceramics in fields ranging from mineral exploration, to imaging to biomedical devices. This project will enable the development of lead-free alternatives to current materials and more reliable materials which will reduce the need for waste disposal.Read moreRead less
Development of Cyclic Fatigue Degradation Criteria for Piezoelectric Ceramic Components. Piezoelectric ceramics are widely used in advanced engineering applications such as actuators in the automotive industry, sonars for submarine mineral exploration and defence, and a broad range of medical devices, e.g. ultrasound probes. The reliable operational lifetime of these devices is, however, severely limited because they suffer cyclic fatigue leading to both degradation in performance and device fai ....Development of Cyclic Fatigue Degradation Criteria for Piezoelectric Ceramic Components. Piezoelectric ceramics are widely used in advanced engineering applications such as actuators in the automotive industry, sonars for submarine mineral exploration and defence, and a broad range of medical devices, e.g. ultrasound probes. The reliable operational lifetime of these devices is, however, severely limited because they suffer cyclic fatigue leading to both degradation in performance and device failure. The proposed project seeks to develop an understanding of the mechanisms of fatigue and develop a design model for engineers such that piezoelectric ceramic devices can be operated for longer periods with higher levels of reliability.Read moreRead less
Experimental Verification of the Predictive Value of Microtomography-Based Network Models for Multiphase Flow Properties of Petroleum Reservoir Rocks. Australia's oil and gas reserves are primarily dependent on exploration and development in remote offshore deep waters where the operational costs are highest. This is precisely the area where the emerging microtomography-based network model technology will have the most economic impact. The outcome will be of immense scientific interest to the n ....Experimental Verification of the Predictive Value of Microtomography-Based Network Models for Multiphase Flow Properties of Petroleum Reservoir Rocks. Australia's oil and gas reserves are primarily dependent on exploration and development in remote offshore deep waters where the operational costs are highest. This is precisely the area where the emerging microtomography-based network model technology will have the most economic impact. The outcome will be of immense scientific interest to the national/international community which has long been studying network models to understand multiphase flow in petroleum reservoirs. This will place Australia in the forefront of this technology. Furthermore, modelling studies of groundwater remediation and geosequestration of greenhouse gases which require a multiphase model will benefit from the project.Read moreRead less