Australia's Resilience to Recession. This project aims to study why Australia differs from its OECD peers in that it has not had a recession for 27 years. It intends to generate knowledge by using economic models to solve 3 puzzles relating to Australia’s success: (i) why did foreign financial market shocks not spill over to the economy?; (ii) how has the resource curse that affects economies with a booming resource sector been avoided?; and (iii) what makes Australia special? Expected outcomes ....Australia's Resilience to Recession. This project aims to study why Australia differs from its OECD peers in that it has not had a recession for 27 years. It intends to generate knowledge by using economic models to solve 3 puzzles relating to Australia’s success: (i) why did foreign financial market shocks not spill over to the economy?; (ii) how has the resource curse that affects economies with a booming resource sector been avoided?; and (iii) what makes Australia special? Expected outcomes include the development of theoretical and empirical models that reflect the unique features of the Australian economy. This should provide significant benefits, including guidance to Australian and international policymakers on macroeconomic policies for resource-rich countries.Read moreRead less
Banking System Competition and the Macro-economy. Australia has one of the most concentrated banking sectors in the world, generating concerns regarding its efficiency. This project aims to develop unified frameworks to understand and evaluate quantitatively how the structure of the banking industry affects the macro-economy and provide policy recommendations for establishing a healthy and efficient banking industry. This project expects to improve understanding of the welfare trade-off between ....Banking System Competition and the Macro-economy. Australia has one of the most concentrated banking sectors in the world, generating concerns regarding its efficiency. This project aims to develop unified frameworks to understand and evaluate quantitatively how the structure of the banking industry affects the macro-economy and provide policy recommendations for establishing a healthy and efficient banking industry. This project expects to improve understanding of the welfare trade-off between bank competition and economic well-being to enable policymakers to better determine the optimal concentration of banking sector in Australia. This will enhance the productivity and international competitiveness of Australia’s financial system and the broader economy.Read moreRead less
Nowcasting and Interpreting the Australian Economy. This project aims to investigate methods for nowcasting and interpreting the Australian economy. This is determining the current state of the economy and the factors contributing to it.
This project expects to generate new knowledge on how unconventional, new, data sources and innovative methods can be used to in nowcasting and how the Australian economy can be modelled.
The expected outcomes include timely new indicators of the state of the ec ....Nowcasting and Interpreting the Australian Economy. This project aims to investigate methods for nowcasting and interpreting the Australian economy. This is determining the current state of the economy and the factors contributing to it.
This project expects to generate new knowledge on how unconventional, new, data sources and innovative methods can be used to in nowcasting and how the Australian economy can be modelled.
The expected outcomes include timely new indicators of the state of the economy, and the factors contributing to it. This should provide significant benefits through informing the conduct of Australian macroeconomic policy, as the appropriate policy response depends not only on knowing the current state of the economy but understanding the economic factors underlying it.
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Macroeconomic and Financial Modelling in an Era of Extremes. This project aims to develop methods to allow workhorse models in economics and finance to better reflect tail events--low probability extreme events, such as the Global Financial Crisis and the COVID-19 pandemic. It intends to address fundamental technical challenges in the estimation of such models, develop a coherent framework for counterfactual analysis of these models and propose methods to apply these models in a big-data environ ....Macroeconomic and Financial Modelling in an Era of Extremes. This project aims to develop methods to allow workhorse models in economics and finance to better reflect tail events--low probability extreme events, such as the Global Financial Crisis and the COVID-19 pandemic. It intends to address fundamental technical challenges in the estimation of such models, develop a coherent framework for counterfactual analysis of these models and propose methods to apply these models in a big-data environment. Expected outcomes include new insights into the transmission of tail risks in the global economic and financial system. This should provide significant benefits, including guidance to Australian and international policymakers charged with maintaining stability in the face of extreme events.Read moreRead less
Balancing National Security and Economic Interests in Foreign Investment. The project aims to investigate growing divergence between countries’ inward foreign investment policies and their increasing links to national security. Novel interdisciplinary collaboration integrating political science, economics and law promises insights into these policy shifts, which appear driven by digitalisation of the economy and the rise of emerging markets (eg China) and State-linked investment. Expected outcom ....Balancing National Security and Economic Interests in Foreign Investment. The project aims to investigate growing divergence between countries’ inward foreign investment policies and their increasing links to national security. Novel interdisciplinary collaboration integrating political science, economics and law promises insights into these policy shifts, which appear driven by digitalisation of the economy and the rise of emerging markets (eg China) and State-linked investment. Expected outcomes include clarification of the causes and implications of these shifts and innovative understanding of the connection between national security and economic interests in investment. This new knowledge should enhance balance in investment policy and decision-making, with economic and foreign policy benefits for Australia.Read moreRead less
Skills, productivity, and wages: Theory and evidence . This project aims to build a macroeconomic model to help understand the implications of heterogeneity in workers skills for wages and productivity.
The research significance of this project is in its treatment of worker skills as an indivisible bundle. This bundling of skills gives rise to the possibility that a given skill is priced differently in different occupations which in turn has implications for firms' incentives to invest in tech ....Skills, productivity, and wages: Theory and evidence . This project aims to build a macroeconomic model to help understand the implications of heterogeneity in workers skills for wages and productivity.
The research significance of this project is in its treatment of worker skills as an indivisible bundle. This bundling of skills gives rise to the possibility that a given skill is priced differently in different occupations which in turn has implications for firms' incentives to invest in technology and training and workers' incentives to invest in education.
This project uses state of the art economic theory and empirical methods and expects to provide a new and better understanding of the sources of wage growth that helps guide national policy formation in innovation and training.
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Discovery Early Career Researcher Award - Grant ID: DE200100693
Funder
Australian Research Council
Funding Amount
$405,458.00
Summary
Financial Cycles and the Macroeconomy. The project aims to measure and understand the drivers of the financial cycle. As unsustainable financial conditions, such as excess credit, tend to precede financial cycle busts, which often eventuate into recessions, the project aims to also shed light on the interaction between the financial cycle and macroeconomy. These aims are expected to be achieved through the application of a new set of econometric tools to estimate and interpret financial cycles. ....Financial Cycles and the Macroeconomy. The project aims to measure and understand the drivers of the financial cycle. As unsustainable financial conditions, such as excess credit, tend to precede financial cycle busts, which often eventuate into recessions, the project aims to also shed light on the interaction between the financial cycle and macroeconomy. These aims are expected to be achieved through the application of a new set of econometric tools to estimate and interpret financial cycles. The expected outcomes of this project include new insights for institutions such as the Reserve Bank of Australia and should provide significant benefit through the appropriate design of macroeconomic policy.Read moreRead less
Structural Adjustment, Income Risk, and Human Capital Specificity. This project will build a macroeconomic model to attempt to understand how an economy should manage structural adjustment to economic shocks (such as a substantial change in trade policy, significant exchange rate appreciation, or major technological change) in order to induce the reallocation of labour and other factors of production across different sectors of the economy. Two key features of the model will be human capital spe ....Structural Adjustment, Income Risk, and Human Capital Specificity. This project will build a macroeconomic model to attempt to understand how an economy should manage structural adjustment to economic shocks (such as a substantial change in trade policy, significant exchange rate appreciation, or major technological change) in order to induce the reallocation of labour and other factors of production across different sectors of the economy. Two key features of the model will be human capital specificity, that is, skills may not be easily transferrable across sectors of the economy, and incomplete markets for income risk so that the burdens of adjustment may be concentrated on displaced workers rather than being efficiently shared. Various policies for managing adjustment will be evaluated quantitatively.Read moreRead less
The Integrated Bio-economy Project and the Controlled Biosphere. This project aims to develop advanced controlled environment production systems (Controlled Biosphere) that exceed the industry standard for profitability, sustainability and climatic resilience. It will generate new knowledge and innovations in technology integration through a highly multi-disciplinary approach. The project outcomes will yield Techno-Economic and Life-Cycle Analyses, designs of the Controlled Biosphere and support ....The Integrated Bio-economy Project and the Controlled Biosphere. This project aims to develop advanced controlled environment production systems (Controlled Biosphere) that exceed the industry standard for profitability, sustainability and climatic resilience. It will generate new knowledge and innovations in technology integration through a highly multi-disciplinary approach. The project outcomes will yield Techno-Economic and Life-Cycle Analyses, designs of the Controlled Biosphere and supporting policy frameworks. The benefits of this project address worsening resource constraints (e.g. available fresh water, arable land, nutrients); By 2050 we will require 70% more food, and 80% greenhouse gas emissions reductions, to maintain economic, social, political and climate security.Read moreRead less