Inequality, Trade, and Technology. This project aims to improve our understanding of the causes of rising income inequality in the world economy and in Australia since the early 1980s. We focus on the increasing building costs and imports of machinery as significant contributors to the increasing inequality. We hypothesize 1) that the increasing costs of buildings have reduced the demand for workers that are complementary to non-residential building capital; thus, reducing real wages; and 2) tha ....Inequality, Trade, and Technology. This project aims to improve our understanding of the causes of rising income inequality in the world economy and in Australia since the early 1980s. We focus on the increasing building costs and imports of machinery as significant contributors to the increasing inequality. We hypothesize 1) that the increasing costs of buildings have reduced the demand for workers that are complementary to non-residential building capital; thus, reducing real wages; and 2) that the marked increase in imports of machinery since the 1960s has reduced the demand for unskilled labour and widened the employment and wage gap between skilled and unskilled labour. Both factors may have driven the increasing inequality in Australia.
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Inequality and economic growth. This project aims to identify forces driving inequality. Piketty’s influential book, Capital in the 21st Century, stimulated research on inequality to address the increased public concern about inequality and its side-effects such as reduced growth. Piketty proposes three laws that explain and predict inequality paths over time, but there is no empirical evidence or theoretical foundations for these laws. This project will examine Piketty’s laws and investigate fa ....Inequality and economic growth. This project aims to identify forces driving inequality. Piketty’s influential book, Capital in the 21st Century, stimulated research on inequality to address the increased public concern about inequality and its side-effects such as reduced growth. Piketty proposes three laws that explain and predict inequality paths over time, but there is no empirical evidence or theoretical foundations for these laws. This project will examine Piketty’s laws and investigate factors that shape inequality and its relation to growth. This knowledge should enable Australian governments to reduce inequality and benefit economic growth, thereby reducing disadvantage and building stronger, more resilient communities.Read moreRead less
Sustaining India's economic transformation: challenges, prospects and implications for Australia and the Pacific region. India's emergence from economic stagnation is beginning to have a profound impact on the world economy, including Australia. This project aims to investigate the sources of India's growth and the reforms needed to ensure that growth generates reductions in poverty and ensures equity and political stability.
Government, Institutions and Economic Activity: A Long Term Analysis. Using national and regional data for 30 to 50 countries over multiple centuries, this project will examine the effects of itemised government expenditure and revenue on productivity, investment, saving, labour force participation and research and development. The results are expected to shed light on the macroeconomic effects of different revenue and spending categories (education, transfers, and so on). In addition, the proje ....Government, Institutions and Economic Activity: A Long Term Analysis. Using national and regional data for 30 to 50 countries over multiple centuries, this project will examine the effects of itemised government expenditure and revenue on productivity, investment, saving, labour force participation and research and development. The results are expected to shed light on the macroeconomic effects of different revenue and spending categories (education, transfers, and so on). In addition, the project aims to determine which factors have been responsible for the increase of government size over the past two centuries. The results aim to further reveal which government revenue and expenditure items are most conducive to economic welfare and growth.Read moreRead less
The econometrics of gravity models of trade: a re-assessment. This research will lead a much greater understanding of the empirical determinants of trade flows between countries. This project will apply cutting-edge data econometric techniques to the popular Gravity model of international trade flows. These more appropriate techniques will shed more light on some previous puzzling findings, such that regional trade agreements had little, or no, affect on trade.
Energy transitions: past, present and future. Uncertainty about the costs of transitioning to a low carbon economy in Australia and other countries will be reduced by improving our knowledge of the costs of reducing fossil fuel use and the role of energy in economic growth. Energy economics research capabilities in Australia will be enhanced.