Technological innovation, trade liberalization, unemployment, and policy design. Australia, like all economies, is heavily influenced by technological changes and shifting trade patterns. Understanding these influences, and the impact they have on the distribution of income, the unemployment rate, and the job mix, is very important for the design of appropriate policy initiatives. The proposed research aims to achieve exactly this by developing a mathematical model which incorporates technologic ....Technological innovation, trade liberalization, unemployment, and policy design. Australia, like all economies, is heavily influenced by technological changes and shifting trade patterns. Understanding these influences, and the impact they have on the distribution of income, the unemployment rate, and the job mix, is very important for the design of appropriate policy initiatives. The proposed research aims to achieve exactly this by developing a mathematical model which incorporates technological change, trade, and unemployment. The model will be used to analyse the effects of these changes and, thus, to design optimal policy. The results from this project should also stimulate policy discussions both within Australia and abroad - enriching academic relations between domestic and international universities.Read moreRead less
The Role of a Central Bank’s Balance Sheet in Shaping the Economy. In response to the global financial crisis, the world’s major central banks cut their rates to near zero and implemented untested unconventional monetary policies, significantly expanding the size and composition of their balance sheets. More than a decade later, the Reserve Bank of Australia is considering similar balance sheet policies. This proposal aims to develop various frameworks that can be used to simulate and evaluate w ....The Role of a Central Bank’s Balance Sheet in Shaping the Economy. In response to the global financial crisis, the world’s major central banks cut their rates to near zero and implemented untested unconventional monetary policies, significantly expanding the size and composition of their balance sheets. More than a decade later, the Reserve Bank of Australia is considering similar balance sheet policies. This proposal aims to develop various frameworks that can be used to simulate and evaluate when and how to eventually undo unconventional monetary policies in order to prevent a prolonged recession. Thus this research proposal will contribute to the current Australian monetary policy debate while providing some insights on how best to implement such policies, improving the living standards of Australians.Read moreRead less
Public Finance and Cryptocurrencies. This project aims to analyse the impact of cryptocurrency technology on taxation and the provision of public goods in Australia. The project will identify the historical relationship between money technologies and public finance, examine the impact of cryptocurrencies in relation to the modern state, and investigate the potential of utilising cryptocurrencies in the provision of public goods. The outcomes of the research will expand theoretical and practical ....Public Finance and Cryptocurrencies. This project aims to analyse the impact of cryptocurrency technology on taxation and the provision of public goods in Australia. The project will identify the historical relationship between money technologies and public finance, examine the impact of cryptocurrencies in relation to the modern state, and investigate the potential of utilising cryptocurrencies in the provision of public goods. The outcomes of the research will expand theoretical and practical understanding of public finance in a world of cryptocurrencies. The project findings will provide guidance to Australian and international policymakers to prepare for potential disruptions to taxation and public goods provision. Read moreRead less
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
Optimal Tax Policy Meets Modern Labour Supply Theory. This project aims to generate new evidence on the optimal design of the federal tax system. Specifically, it seeks to determine the optimal combination of taxes on income, capital and consumption to raise necessary revenue while minimizing disincentives for work and capital formation. The project is innovative because, for the first time, it does optimal tax calculations using models that account fully for how taxes affect human capital inves ....Optimal Tax Policy Meets Modern Labour Supply Theory. This project aims to generate new evidence on the optimal design of the federal tax system. Specifically, it seeks to determine the optimal combination of taxes on income, capital and consumption to raise necessary revenue while minimizing disincentives for work and capital formation. The project is innovative because, for the first time, it does optimal tax calculations using models that account fully for how taxes affect human capital investment and labour force participation. It aims to enhance or understanding of the optimal mix between taxes on earnings, capital and consumption, and the optimal degree of income tax progressivity. The benefit is a tax system better designed to promote economic efficiency and human capital formation. Read moreRead less
An Improved Framework for Analysing the Fiscal Implications of Population Ageing. The Commonwealth Government's 'National Strategy for an Ageing Australia' explicitly acknowledged the potential for intergenerational conflict in Australia as relatively fewer young people must provide for the consumption of a growing proportion of retired people. The Intergenerational Report (IGR) in 2002 was an important step in national planning to avoid such a conflict. The proposed project seeks to address maj ....An Improved Framework for Analysing the Fiscal Implications of Population Ageing. The Commonwealth Government's 'National Strategy for an Ageing Australia' explicitly acknowledged the potential for intergenerational conflict in Australia as relatively fewer young people must provide for the consumption of a growing proportion of retired people. The Intergenerational Report (IGR) in 2002 was an important step in national planning to avoid such a conflict. The proposed project seeks to address major shortcomings in the IGR and provide an improved framework for future IGRs. The project addresses two Priority Goals within the Designated National Research Priority 2. These are: 'Ageing well, ageing productively' and 'strengthening Australia's social and economic fabric'.Read moreRead less
International Trade Policy Evaluation, Economic Growth and Demographics. The research will strengthen our understanding of Australia's place in the region and the world. Given Australia's dependence upon international trade, the importance of economic growth and demographic change, the relevance of inter-generation welfare and the challenges arising from globalization and the international trade policy environment, knowledge of the power and implications of international trade policies is crucia ....International Trade Policy Evaluation, Economic Growth and Demographics. The research will strengthen our understanding of Australia's place in the region and the world. Given Australia's dependence upon international trade, the importance of economic growth and demographic change, the relevance of inter-generation welfare and the challenges arising from globalization and the international trade policy environment, knowledge of the power and implications of international trade policies is crucial. This research will provide an analytical framework that will better inform policy makers and analysts and contribute to better understanding of Australia's options and role in the international trade policy arena. The result will be better trade policy choices.Read moreRead less