Bajada, C., Melatos, Karlan & Morduch 2017, Principles of Economics (1st edition), McGraw-Hill, Australia.
Bajada, C. 2017, 'Money Laundering Activities in Australia – An examination of the push and pull factors driving money flows.' in Rowley, C. & Rama, M. (eds), The Changing Face of Corruption in the Asia Pacific, Elsevier, UK.
Bajada, C. 2017, 'Money Laundering Activities in Australia – An examination of the push and pull factors driving money flows.' in Rowley, C. & dela Rama, M. (eds), The Growing Face of Corruption in the Asia Pacific, Elsevier.
Buckley, N., Mestelman, S., Muller, A., Schott, S. & Zhang, J. 2017, 'The Effects of Communication on the Partnership Solution to the Commons', Environmental and Resource Economics.
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2016 Copyright © Taylor & Francis Group, LLCWe propose an easy technique to test for time-variation in coefficients and volatilities. Specifically, by using a noncentered parameterization for state space models, we develop a method to directly calculate the relevant Bayes factor using the Savage–Dickey density ratio—thus avoiding the computation of the marginal likelihood altogether. The proposed methodology is illustrated via two empirical applications. In the first application, we test for time-variation in the volatility of inflation in the G7 countries. The second application investigates if there is substantial time-variation in the nonaccelerating inflation rate of unemployment (NAIRU) in the United States.
Chiarella, C. & Di Guilmi, C. 2017, 'Monetary Policy and Debt Deflation: Some Computational Experiments', Macroeconomic Dynamics, vol. 21, no. 1, pp. 214-242.
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Copyright © Cambridge University Press 2016 The paper presents an agent-based model to study the possible effects of different fiscal and monetary policies in the context of debt deflation. We introduce a modified Taylor rule that includes the financial position of firms as a target. Monte Carlo simulations provide a representation of the complex feedback effects generated by the interaction among the different transmission channels of monetary policy. The model also reproduces the evidence of low inflation during stock market booms and shows how it can lead to overinvestment and destabilize the system. The paper also investigates the possible reasons behind this stylized fact by testing different behavioral rules for the central bank. We find that, in a context of sticky prices and volatile expectations, endogenous credit creation can be identified as the main source of the divergent dynamics of prices in the real and financial sectors.
Grant, A.L. & Chan, J.C.C. 2017, 'Reconciling output gaps: Unobserved components model and Hodrick–Prescott filter', Journal of Economic Dynamics and Control, vol. 75, pp. 114-121.
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© 2017 Elsevier B.V.This paper reconciles two widely used trend–cycle decompositions of GDP that give markedly different estimates: the correlated unobserved components model yields output gaps that are small in amplitude, whereas the Hodrick–Prescott (HP) filter generates large and persistent cycles. By embedding the HP filter in an unobserved components model, we show that this difference arises due to differences in the way the stochastic trend is modeled. Moreover, the HP filter implies that the cyclical components are serially independent—an assumption that is decidedly rejected by the data. By relaxing this restrictive assumption, the augmented HP filter provides comparable model fit relative to the standard correlated unobserved components model.
Johar, M., Maruyama, S. & Truong, J. 2017, 'The contribution of Western fast food to fast-growing body mass in China', Applied Economics, vol. 49, no. 8, pp. 797-811.
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The westernization of Asian countries has led to the rapid expansion of Western-style fast-food restaurants, which are believed to be fueling an unprecedented rise in body mass in these countries. This study tests this belief using longitudinal data from China. Exploiting the opening of a Western-style fast-food restaurant in a particular community, we conduct a transition analysis to make a more convincing causal interpretation than the standard cross-sectional or fixed-effects approach. Considering several measures of fatness, we find no robust evidence of Western fast food having a substantial effect overall, but there is some indication of effect heterogeneity.
Johar, M., Mu, C., van Gool, K. & Wong, C.Y. 2017, 'Bleeding hearts, profiteers, or both specialist physician fees in an unregulated market', Health Economics, vol. 26, no. 4, pp. 528-535.
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There is a potential free-rider problem when several siblings consider future provision of care for their elderly parents. Siblings can commit to not providing long-term support by living far away. If location decisions are made by birth order, older siblings may enjoy a Örstmover advantage. We study siblingsílocation decisions relative to their parents by estimating a sequential participation game for US data. We Önd: (1) limited strategic behavior: in two-child families, more than 92% of children have a dominant strategy; and (2) a non-negligible public good problem: in families with multiple children, 18.3% more parents would have had at least one child living nearby had location decisions been made cooperatively
© 2016 Elsevier B.V.This paper analyzes sequential negotiations with exogenous breakdown risk between a risk-neutral seller and a loss-averse buyer who is privately informed about his valuation. I show that, compared to the risk-neutral benchmark, loss aversion on the buyer's side softens the rent-efficiency trade-off for the seller. The reason is that the higher the buyer's valuation is, the more he has to lose by rejecting the seller's offer. Thus, in equilibrium the seller's profits and overall efficiency are both higher than in the risk-neutral case. Moreover, I also show that loss aversion has a redistributive effect by increasing the equilibrium payoff of some low-valuation buyers and decreasing that of high-valuation ones.
When an agent's motivation is sensitive to how his supervisor thinks about the agent's competence, the supervisor has to take into account both informational and expressive contents of her message to the agent. This paper shows that the supervisor can credibly express her trust in the agent's ability only by being unclear about what to do. Suggesting what to do, i.e., "directives," could reveal the supervisor's "distrust" and reduce the agent's equilibrium effort level even though it provides useful information about the decision environment. There is also an equilibrium in which directives are neutral in expressive content. However, it is shown that neologism proofness favors equilibria in which directives are double-edged swords.
This article examines the determinants of student performance in a second-year undergraduate economics course at a major Australian university - the University of Technology, Sydney. This article contributes to the literature by focusing on economics teaching in second-year, which is an area that has received little scholarly interest. The ultimately providing a usable sample group of 122 students. Out of a wide range of variables, two strong determinants of performance emerged: namely, students' pre-course aptitude and hours spent in paid employment. Based on these findings suggestions for increasing student performance in second-year economics are provided.
Van Essen, M. & Wooders, J. 2017, 'Dissolving a Partnership Securely'.
Stavrunova, O., Johar, M. & Popovski, D. 2016, 'Weather Disasters and Mental Health: The Case of Damage to Housing', European Conference on Health Economics [ECHE], Hamburg.
Stavrunova, O., Johar, M. & Popovski, D. 2017, 'Weather Disasters and Mental Health: The Case of Damage to Housing', 8th Workshop on Economics of Health and Wellbeing, Melbourne.