New methods for solving large models with rational expectations. This project aims to introduce innovative numerical methods to economic modelling to overcome computational barriers associated with the formation of expectations by households and investors. The outcome will be economic models that include sophisticated rational expectations specifications while retaining considerable industry, regional and occupational disaggregation. There will be benefits to economic policy by broadening the r ....New methods for solving large models with rational expectations. This project aims to introduce innovative numerical methods to economic modelling to overcome computational barriers associated with the formation of expectations by households and investors. The outcome will be economic models that include sophisticated rational expectations specifications while retaining considerable industry, regional and occupational disaggregation. There will be benefits to economic policy by broadening the range of questions that can be answered by detailed models and there will be benefits in the research community by providing a platform for examining dynamics in large-scale economic systems.Read moreRead less
Next generation computable general equilibrium modelling for economic policy formulation and evaluation. The aim of this project is to create the next generation of computable general equilibrium (CGE) models. The project will do this by introducing into the CGE framework theoretical structures and data from engineering and environmental studies as well as from modern macroeconomics, labour economics, industrial organization, monetary economics and behavioural economics. CGE models are used by ....Next generation computable general equilibrium modelling for economic policy formulation and evaluation. The aim of this project is to create the next generation of computable general equilibrium (CGE) models. The project will do this by introducing into the CGE framework theoretical structures and data from engineering and environmental studies as well as from modern macroeconomics, labour economics, industrial organization, monetary economics and behavioural economics. CGE models are used by governments throughout the world to assist in policy formulation. The outcome of the project will be to improve the application of CGE models in the areas of: trade; environment; energy; immigration; public finance; and macro stimulation. Read moreRead less
Australian Real Time Data: Construction, Analysis and Implications for Real Time Policy Making. This first comprehensive macroeconomic real time database for Australia recording the actual data available to policy makers at the time of making decisions will serve as a standard reference for accurate ex post macroeconomic policy evaluation and for accurate forecasts and decision making which are robust to data revisions. The free database will be of interest to Australian researchers, economists, ....Australian Real Time Data: Construction, Analysis and Implications for Real Time Policy Making. This first comprehensive macroeconomic real time database for Australia recording the actual data available to policy makers at the time of making decisions will serve as a standard reference for accurate ex post macroeconomic policy evaluation and for accurate forecasts and decision making which are robust to data revisions. The free database will be of interest to Australian researchers, economists, forecasters and policy makers. Readily applicable and interpretable forecasts of the business cycle and the current state of the Australian (and US) economy (e.g. likelihood of recessions or inflation) will be of direct relevance to Australian policy-makers in Government, the Reserve Bank of Australia, and to the Australian decision-makers. Read moreRead less
Unraveling ocean mixing and air-sea forcing along the Indo-Pacific exchange. This project aims to collect unprecedented observations and develop high resolution model simulations to examine changes in the Indonesian Throughflow (ITF) north of Australia. This project expects to develop new knowledge of ocean-atmosphere interactions along the path of the ITF from the Pacific to the Indian Ocean, which are the powerhouse that drives changes in winds and rainfall around Australia and the entire Indo ....Unraveling ocean mixing and air-sea forcing along the Indo-Pacific exchange. This project aims to collect unprecedented observations and develop high resolution model simulations to examine changes in the Indonesian Throughflow (ITF) north of Australia. This project expects to develop new knowledge of ocean-atmosphere interactions along the path of the ITF from the Pacific to the Indian Ocean, which are the powerhouse that drives changes in winds and rainfall around Australia and the entire Indo-Pacific region. Expected outcomes include a 1000-fold increase in the observations of mixing in the Indonesian seas and new understanding of the ocean-atmosphere processes that control water property change along the ITF. This should lead to strong improvement in the skill of climate forecast models in the Australian region.Read moreRead less
Coupling tropical cyclone and climate physics with ocean waves. It is argued that without accounting for the wave effects directly, the physics of large-scale air-sea interactions is inaccurate and incomplete. The project will introduce explicit coupling of large-scale atmospheric and oceanic phenomena with the physics of surface waves which should lead to improved predictions of tropical cyclones and climate.
Testing a new explanation of cloud feedback on global climate. A new analysis suggests that the sensitivity of global climate to greenhouse gases is largely controlled by the upward transport of water vapour in the lower troposphere, but the analysis did not examine clouds, which must be involved for the mechanism to be valid. The aim of the proposed project is to determine whether variations in cloud implied by this new explanation are supported by observations and process models. If the explan ....Testing a new explanation of cloud feedback on global climate. A new analysis suggests that the sensitivity of global climate to greenhouse gases is largely controlled by the upward transport of water vapour in the lower troposphere, but the analysis did not examine clouds, which must be involved for the mechanism to be valid. The aim of the proposed project is to determine whether variations in cloud implied by this new explanation are supported by observations and process models. If the explanation is confirmed, then for the first time in over 30 years of intense research it will be possible to determine the long-term severity of global warming by examining the present-day atmosphere. The expected outcome of this research is to clarify how and why low clouds change in altered climates.Read moreRead less
Robust methods for heteroscedastic regression models for time series. What is the variability of the exchange rate of the Euro to the Australian dollar? Can the use of the electrocardiogram of a patient be improved as a diagnostic tool for heart disease? A well-known limitation of the existing statistical methods for answering these types of questions is that a small proportion of extreme observations have the potential to lead to results that are more in agreement with the outliers than with bu ....Robust methods for heteroscedastic regression models for time series. What is the variability of the exchange rate of the Euro to the Australian dollar? Can the use of the electrocardiogram of a patient be improved as a diagnostic tool for heart disease? A well-known limitation of the existing statistical methods for answering these types of questions is that a small proportion of extreme observations have the potential to lead to results that are more in agreement with the outliers than with bulk of the data. As a consequence, the statistical analyses may lead to wrong conclusions. This project aims to develop new methodologies to solve this problem for a large class of studies. Applications to stock market risk, exchange rate, and diagnosis of heart diseases will illustrate the new methods.Read moreRead less
New insights into abrupt climate change using isotope model-data fusion. There have been several episodes in the past 60,000 years during which carbon dioxide was released into the atmosphere causing significant and rapid warming. This project aims to determine the source of the carbon responsible for these warming events. This project is significant because it will increase our understanding of the processes underlying abrupt past, and potential future changes. These processes are currently und ....New insights into abrupt climate change using isotope model-data fusion. There have been several episodes in the past 60,000 years during which carbon dioxide was released into the atmosphere causing significant and rapid warming. This project aims to determine the source of the carbon responsible for these warming events. This project is significant because it will increase our understanding of the processes underlying abrupt past, and potential future changes. These processes are currently underestimated or missing in climate models. The expected outcomes include a better understanding of the non-linear responses in the climate system. This should provide significant benefits, such as an assessment of whether the smooth climate changes currently projected through to year 2100 are misleading.Read moreRead less
The weather-climate connection in Australian climate change. This project aims to uncover the key links in Australia's weather-climate connection by identifying the role weather features play in influencing the slowly varying climate and how changes in one might affect changes in the other. Better describing the two-way connection between weather and climate through an innovative combination of research techniques usually applied to only one of weather or climate will allow for a more insightful ....The weather-climate connection in Australian climate change. This project aims to uncover the key links in Australia's weather-climate connection by identifying the role weather features play in influencing the slowly varying climate and how changes in one might affect changes in the other. Better describing the two-way connection between weather and climate through an innovative combination of research techniques usually applied to only one of weather or climate will allow for a more insightful assessment of climate model quality. This assessment will support the identification of the most reliable climate models and, by using them, reduce uncertainties in future predictions. Improved predictions of climate in turn will enable better decision making in all sectors of society.Read moreRead less
Evaluation of targeting rules for implementing monetary policy. Monetary policy plays a primary role in stabilising business cycle fluctuations and in mitigating the effects of large economic shocks. This research deals with key issues in the operation of monetary policy. Our econometric analysis will provide new evidence on the short term goals pursed by central banks and improve our understanding their trade-offs. One application of our results will be an improvement in the ability to measure ....Evaluation of targeting rules for implementing monetary policy. Monetary policy plays a primary role in stabilising business cycle fluctuations and in mitigating the effects of large economic shocks. This research deals with key issues in the operation of monetary policy. Our econometric analysis will provide new evidence on the short term goals pursed by central banks and improve our understanding their trade-offs. One application of our results will be an improvement in the ability to measure and evaluate the performance of central banks. Greater evidence on the objectives and constraints of central banks will increase public knowledge and understanding of monetary policy, leading to more effective policy. Read moreRead less