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
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
An economic analysis of multi-period reform programs. This project aims to use a mechanism design approach to study multi-period reform programs and their use in the transition from status quo institutions. The project intends to shed light on the difficulties of introducing efficiency enhancing long-term policies. Expected outcomes include theoretical models that incorporate adjustment costs, common values, and complicated status quo institutions into models of economic reform from a mechanism ....An economic analysis of multi-period reform programs. This project aims to use a mechanism design approach to study multi-period reform programs and their use in the transition from status quo institutions. The project intends to shed light on the difficulties of introducing efficiency enhancing long-term policies. Expected outcomes include theoretical models that incorporate adjustment costs, common values, and complicated status quo institutions into models of economic reform from a mechanism design perspective as well as optimal dynamic reform policies in the presence of these frictions, focusing attention in the trade-off between static efficiency and dynamic welfare gains. Intended benefits include insights that are wildly applicable to the provision of public infrastructure and management of public resources.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.
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
Real economy and financial networks. This project aims to analyse the Australian economy from the network perspective. The network approach’s emphasis on the structure of interactions between firms, banks and consumers is important for understanding the economy. The project intends to develop a model of a production network using the input-output links between sectors, including imports and exports, and focusing on credit-lending relations that may cause economic distortions. It also aims to adv ....Real economy and financial networks. This project aims to analyse the Australian economy from the network perspective. The network approach’s emphasis on the structure of interactions between firms, banks and consumers is important for understanding the economy. The project intends to develop a model of a production network using the input-output links between sectors, including imports and exports, and focusing on credit-lending relations that may cause economic distortions. It also aims to advance a theory and estimation methodology for the network formation models useful for prediction and policy analysis. Anticipated benefits include mitigation of economic risks and improved policies.Read moreRead less