Chief executive officer pay, incentives, talent and risk-taking: Excessive pay, regulation and the global financial crisis. The Prime Minister has requested the regulators, APRA and Treasury, to come up with rules that would prevent a repeat of the trillion dollar bailouts and guarantees to the financial sector and banks at risk of failure. Excessive pay and risk-taking by bank executives shoulder made the blame for the global crisis that has already cost Australian investors and taxpayers a siz ....Chief executive officer pay, incentives, talent and risk-taking: Excessive pay, regulation and the global financial crisis. The Prime Minister has requested the regulators, APRA and Treasury, to come up with rules that would prevent a repeat of the trillion dollar bailouts and guarantees to the financial sector and banks at risk of failure. Excessive pay and risk-taking by bank executives shoulder made the blame for the global crisis that has already cost Australian investors and taxpayers a sizeable portion of the nation's wealth. The project will greatly assist the regulators in this task. It will also identify compensation practices that reward good long-term performance without excessive pay. This could dramatically raise the performance of Australian companies and ameliorate the problem of dissatisfied investors and taxpayers.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