A Synthesis of Agency and Managerial Power Theories and Its Applications to Corporate Governance, Management Compensation, and Firm Performance. The existing models of corporate governance in economics and finance based on agency theory do not successfully portray all modern corporations. Thus the importance of a new and rigorous way to study corporate governance can be hardly exaggerated. This project will provide a synthesized theory of corporate governance and is expected to produce highest- ....A Synthesis of Agency and Managerial Power Theories and Its Applications to Corporate Governance, Management Compensation, and Firm Performance. The existing models of corporate governance in economics and finance based on agency theory do not successfully portray all modern corporations. Thus the importance of a new and rigorous way to study corporate governance can be hardly exaggerated. This project will provide a synthesized theory of corporate governance and is expected to produce highest-quality research publishable in top-tier journals. This will, among others, enhance Australia's standing as a knowledge nation. This project is also expected to contribute to the discussions on how to improve corporate governance and regulation of management compensation both in Australia and abroad. Read moreRead less
Internal capital markets, divisional rent-seeking and optimal incentives: theory and evidence. There exists a considerable gap between real-world economic organizations and the economic theory of the firm. This project provides formal theories of resource allocation within multidivisional corporations and the nature of optimal incentives, thereby contributing to fill this gap. The project is expected to produce highest-quality research publishable in top-tier journals. This will, among others, e ....Internal capital markets, divisional rent-seeking and optimal incentives: theory and evidence. There exists a considerable gap between real-world economic organizations and the economic theory of the firm. This project provides formal theories of resource allocation within multidivisional corporations and the nature of optimal incentives, thereby contributing to fill this gap. The project is expected to produce highest-quality research publishable in top-tier journals. This will, among others, enhance Australia's standing as a knowledge nation. Additional benefit comes from the possibility of longer term collaborative research between Monash University and the University of Bristol, and possible research collaboration between Australian and British economists that goes beyond the two institutions. Read moreRead less
Increasing Returns and Economic Efficiency. The project attempts to increase the international profile of Australian research by extending the analysis of the challenging issues of economic efficiency in the presence of increasing returns. The proposed analysis takes account of both allocational efficiency and organizational efficiency. It will integrate the Dixit-Stiglitz model of the traditional analysis with the Yang-Ng-Shi model of the new framework to provide a more realistic analysis that ....Increasing Returns and Economic Efficiency. The project attempts to increase the international profile of Australian research by extending the analysis of the challenging issues of economic efficiency in the presence of increasing returns. The proposed analysis takes account of both allocational efficiency and organizational efficiency. It will integrate the Dixit-Stiglitz model of the traditional analysis with the Yang-Ng-Shi model of the new framework to provide a more realistic analysis that allows for increasing returns in both home and firm/market production. This conceptual extension constitutes an advance that is of analytical value and will also be relevant for the formulation of public economic policy in the Australian setting and also more generally. Read moreRead less
Natural resources and ecosystem services in productivity measurement. This project aims to understand sources of productivity growth through addressing theoretical and practical problems in the economics of natural resources and ecosystem services. It will study the valuation of non-renewable resources and ecosystem services, acknowledging their contributions to economic activity and the effect on national income from their depletion and degradation. It will develop approaches to incorporating n ....Natural resources and ecosystem services in productivity measurement. This project aims to understand sources of productivity growth through addressing theoretical and practical problems in the economics of natural resources and ecosystem services. It will study the valuation of non-renewable resources and ecosystem services, acknowledging their contributions to economic activity and the effect on national income from their depletion and degradation. It will develop approaches to incorporating natural resource depletion and degradation into productivity analysis with the aim of better informing environmental, innovation and industry policy.Read moreRead less
Economics of continuous-time financial markets and endogenous pricing. This research has the potential to benefit society by improving the accuracy of pricing in securities markets. First, because the research leads to specific predictions about the interaction of prices for different type of assets, it should lead to more accurate pricing across markets, such as housing, stocks and bonds, which currently function largely independently. Second, it should lead to more accurate pricing of derivati ....Economics of continuous-time financial markets and endogenous pricing. This research has the potential to benefit society by improving the accuracy of pricing in securities markets. First, because the research leads to specific predictions about the interaction of prices for different type of assets, it should lead to more accurate pricing across markets, such as housing, stocks and bonds, which currently function largely independently. Second, it should lead to more accurate pricing of derivatives in the situations where the exercise price of the derivatives differs significantly from the current price of the underlying stock.Read moreRead less
Heterogeneity, Wage Inequality, Unemployment, and Economic Growth. This project would provide the first internally consistent theory of wage inequality, unemployment and economic growth - and the roles that government policy variables play in determining them. It would use and extend frontier developments in theory, and identify the settings of policy variables (unemployment insurance, tax structures, education policies) that maximise social welfare, given that governments must satisfy their bud ....Heterogeneity, Wage Inequality, Unemployment, and Economic Growth. This project would provide the first internally consistent theory of wage inequality, unemployment and economic growth - and the roles that government policy variables play in determining them. It would use and extend frontier developments in theory, and identify the settings of policy variables (unemployment insurance, tax structures, education policies) that maximise social welfare, given that governments must satisfy their budget constraints. It also aims to uncover the relationship between the innate abilities of workers and their education choices - and the consequences for macro economies and public policy.Read moreRead less
New Directions in Information Economics and Environmental Policy. Recent developments in economic theory, experimental economics, information systems and biophysical modelling have made possible a new generation of policy instruments that can be applied in environmental economics. A recent pilot study of biodiversity preservation auctions in Victoria has demonstrated the practicality in principle of these techniques. We will build on this pilot study to develop practical policy instruments based ....New Directions in Information Economics and Environmental Policy. Recent developments in economic theory, experimental economics, information systems and biophysical modelling have made possible a new generation of policy instruments that can be applied in environmental economics. A recent pilot study of biodiversity preservation auctions in Victoria has demonstrated the practicality in principle of these techniques. We will build on this pilot study to develop practical policy instruments based on these principles.Read moreRead less
Special Research Initiatives - Grant ID: SR0354472
Funder
Australian Research Council
Funding Amount
$10,000.00
Summary
The Economic Design Network. The Economic Design Network will integrate research, communication, education, and policy development in the rapidly emerging discipline of Economic Design in complex systems.
Based on the core disciplines of Economic Theory and Experimental Economics, but with extensive links into other areas of economics and interdisciplinary policy, it is concerned with the design of institutions and policies when rational economic agents (individuals or firms) are embedded in c ....The Economic Design Network. The Economic Design Network will integrate research, communication, education, and policy development in the rapidly emerging discipline of Economic Design in complex systems.
Based on the core disciplines of Economic Theory and Experimental Economics, but with extensive links into other areas of economics and interdisciplinary policy, it is concerned with the design of institutions and policies when rational economic agents (individuals or firms) are embedded in complex biological, social or technological systems. Examples of such systems include the bioeconomic and biophysical systems of the Murray Darling Basin, telecommunication networks and the internet, power distribution grids and markets, health and insurance networks, and information networks (including systems of intellectual property). Economic design principles are fundamental to many current policy debates.Read moreRead less
Designing Innovative Allocation Mechanisms for Public Policy. This project applies modern techniques of game theory, auction theory, and experimental economics to public policy design. It can deliver public benefits across a broad front by introducing and demonstrating a new policy design methodology to Australia, by delivering better policy design on specific projects, by building capacity, and by creating a network of collaborators including both University researchers and public sector policy ....Designing Innovative Allocation Mechanisms for Public Policy. This project applies modern techniques of game theory, auction theory, and experimental economics to public policy design. It can deliver public benefits across a broad front by introducing and demonstrating a new policy design methodology to Australia, by delivering better policy design on specific projects, by building capacity, and by creating a network of collaborators including both University researchers and public sector policy experts.Read moreRead less
A Principled Approach to Computer Simulation of Dynamic General Equilibrium Macroeconomic Models. In the last two decades a new generation of computer-intensive
modeling techniques has risen to prominence in macroeconomics. These
methods have broad policy applications, from public finance and
reserve bank operation to analysis of long-run productivity growth,
taxation reform, unemployment, international trade policy and natural
resource conservation. The size and complexity of these model ....A Principled Approach to Computer Simulation of Dynamic General Equilibrium Macroeconomic Models. In the last two decades a new generation of computer-intensive
modeling techniques has risen to prominence in macroeconomics. These
methods have broad policy applications, from public finance and
reserve bank operation to analysis of long-run productivity growth,
taxation reform, unemployment, international trade policy and natural
resource conservation. The size and complexity of these models means
that even computer-based techniques will rely for the foreseeable
future on efficient program design to solve them. The project will
construct a comprehensive set of solution techniques and software for
this class of macroeconomic models, including detailed mathematical
analysis on accuracy of model output.Read moreRead less