Forecasting and Financing Healthy Ageing and Aged Care in Australia. This project aims to quantify future risks of chronic illness and functional disability in retirement, proposing financing strategies aimed at enhancing healthy ageing, lifestyle quality and aged care provisions. The project devotes to devising a framework integrating government and private sector participation in funding health costs which increase significantly in older ages. The expected outcome includes sustainable retireme ....Forecasting and Financing Healthy Ageing and Aged Care in Australia. This project aims to quantify future risks of chronic illness and functional disability in retirement, proposing financing strategies aimed at enhancing healthy ageing, lifestyle quality and aged care provisions. The project devotes to devising a framework integrating government and private sector participation in funding health costs which increase significantly in older ages. The expected outcome includes sustainable retirement income scenarios for easing fiscal pressure from social initiatives such as age pension and aged care financing at the same time improving living standards for seniors. The project expects to place Australia at the forefront of research on sustainable solutions to financial challenges facing retirees.Read moreRead less
Retirement income product innovation. This project aims to develop and assess comprehensive retirement income products to support sustainable retirement income streams for the Australian superannuation system. It will provide a framework to develop flexible structured retirement income products, taking into account the fair and effective allocation of costs and risks. Actuarial and financial analysis will highlight savings in Age Pension and aged care costs arising from more effective design of ....Retirement income product innovation. This project aims to develop and assess comprehensive retirement income products to support sustainable retirement income streams for the Australian superannuation system. It will provide a framework to develop flexible structured retirement income products, taking into account the fair and effective allocation of costs and risks. Actuarial and financial analysis will highlight savings in Age Pension and aged care costs arising from more effective design of retirement income products incorporating investment and longevity risk. It intends to develop risk sharing retirement products, risk management strategies, and longevity index-based hedging contracts to share and mitigate financial and longevity risk.Read moreRead less
New methods for modelling real-world extremes. This project aims to develop new theory and methods for analysing and predicting extreme values observed in real-world processes. Many existing techniques are limited by convenient mathematical assumptions that commonly do not hold in practice: dependence at asymptotic levels, process stationarity, and that the observed data are direct measurements of the process of interest. As a result, using these techniques may produce undesirable results. Expec ....New methods for modelling real-world extremes. This project aims to develop new theory and methods for analysing and predicting extreme values observed in real-world processes. Many existing techniques are limited by convenient mathematical assumptions that commonly do not hold in practice: dependence at asymptotic levels, process stationarity, and that the observed data are direct measurements of the process of interest. As a result, using these techniques may produce undesirable results. Expected outcomes of this project include theoretically justified data analysis techniques that can accurately model extreme values seen in the real world. Project benefits include more realistic analyses of nationally important applications in climate, bushfire insurance risk, and anomaly detection.Read moreRead less
The impact of payout policy changes on firm value and short selling activities across different taxation regimes. Brealey et al (2011) assert that we don't know enough yet about how payout policy varies across firms. This project examines the information content of dividend changes and repurchase programs and the long-term market impact of these announcements, controlling for the substitution effect of repurchases/dividends in different institutional/tax regimes. This project also examines wheth ....The impact of payout policy changes on firm value and short selling activities across different taxation regimes. Brealey et al (2011) assert that we don't know enough yet about how payout policy varies across firms. This project examines the information content of dividend changes and repurchase programs and the long-term market impact of these announcements, controlling for the substitution effect of repurchases/dividends in different institutional/tax regimes. This project also examines whether short sellers manifest abnormal behaviour around the announcement of dividend changes and repurchase programs, and whether earnings are manipulated upwards to maintain the dividend or downwards prior to the announcement of repurchase programs. The findings will be of major interest to academics, managers, investors and regulators.Read moreRead less
Quantitative Analysis of Systemic Risk in Insurance. This project aims to achieve a contemporary and comprehensive quantitative analysis of systemic risk in insurance. The significance lies in narrowing the gap between the studies of systemic risk in banking and insurance. Expected outcomes include the construction of insurance/reinsurance networks to formalise systemic risk, the analysis of the role of network integration, and the development of pricing frameworks to entail a systemic risk prem ....Quantitative Analysis of Systemic Risk in Insurance. This project aims to achieve a contemporary and comprehensive quantitative analysis of systemic risk in insurance. The significance lies in narrowing the gap between the studies of systemic risk in banking and insurance. Expected outcomes include the construction of insurance/reinsurance networks to formalise systemic risk, the analysis of the role of network integration, and the development of pricing frameworks to entail a systemic risk premium. The project will benefit insurers and regulators by providing a forward-looking approach to monitoring and assessing insurance risk during a systemic crisis. These important original contributions to insurance risk management will help establish Australia’s global leadership in systemic risk.Read moreRead less
Information design, cognitive abilities and macro-economic stability. This project aims to improve our understanding of individual decision making in financial markets and its implications for macro-economic stability. Using laboratory and internet experiments, models of adaptive choice behaviour will be developed and validated. The project will help to gain insight into how past information, and the way it is presented, affects investment decisions, which individual characteristics matter for d ....Information design, cognitive abilities and macro-economic stability. This project aims to improve our understanding of individual decision making in financial markets and its implications for macro-economic stability. Using laboratory and internet experiments, models of adaptive choice behaviour will be developed and validated. The project will help to gain insight into how past information, and the way it is presented, affects investment decisions, which individual characteristics matter for decisions, and how this behaviour translates into the evolution of aggregate macro-economic variables. The expected outcomes of the project will have the potential to improve the design of tools for better individual financial decision making, to stabilize volatile markets and to enhance economic welfare.Read moreRead less
Endgame: managing superannuation in later life. This project aims to come up with strategies for improving superannuation advice for the elderly - including retirees, and also those on the cusp of retirement, who often have little or no scope for working harder or longer to restore their finances. It applies recent developments in financial economics to improve the quality of financial planning advice.
Integrating public and private retirement risk protection: public policy and business practice. Demographic shift has brought widespread calls for structures which allow both the private and public sectors to participate in retirement protection. This project will deliver outcomes for co-ordinating public policy and business practice to finance adequate retirement protection, and identify opportunities for specific outcome improvements.
A new theoretical approach to pension fund economics, asset management and insurance. A new generation of sustainable pensions will be proposed, which can, in the long term, increase several times the level of pension payouts. The groundbreaking underlying theoretical approach suggests a paradigm shift and dramatic improvements in the performance of pensions and other long dated contracts in asset management and insurance.
What women want: unravelling the factors underlying women's financial decision-making behaviour. By the time women retire, they are generally worse off financially than men. This national study will be the first to measure the impact of underlying factors that explain rather than describe the financial decision-making behaviour of women, and how financial decision-making and economic outcomes for women might be improved.