To examine how government spending affects the Australian economy, we apply a vector autoregressive (VAR) model, based on the recursive approach of Caldara and Kamps (2008). The estimation results suggest that (i) the government expenditure shock has positively contributed to Australia's...

This paper seeks to identify the effect of consumer sentiment on consumption. Using Australian consumer sentiment data, which is unique in asking individuals about their political preferences, we show that consumers report substantially higher levels of sentiment when their self-identified...

While the world is focused on addressing the near-term ramifications of the COVID-19 shock, we turn attention to another important aspect of the pandemic: its fallout on medium-term potential output through scarring. Taking Australia and New Zealand as examples, we show that the pandemic will...

The Coles Group of Australia has allowed its competitive advantage to slip away to rival Woolworth by failing to differentiate its core strategies and by failing to articulate well the strategies that could have been differentiated. In a bid to gain competitive advantage, this report suggests...

In the 1970s, work hours in Europe were similar to work hours in America, but today Europeans work less than Americans. Prescott (2004) attributes the decline in European work hours to an increase in the effective marginal tax rate on labour income. The Australian labour market experience...

New Zealand’s average income, defined as GDP per capita, is now three quarters that of Australia and even lower than in Australia’s poorest state, Tasmania. Over the last seven years, New Zealand has grown slightly faster than Australia,but at these rates, it would still take 140 years to...

This paper demonstrates effects of economic convergence processes on the foreign exchange behaviour in a monetary modelling approach. Since the exchange rate represents the relative price of two currencies, commonness of stochastic trends between the fundamental determinants of supply and demand...

This paper demonstrates effects of economic convergence processes on the foreign exchange behaviour in a monetary modelling approach. Since the exchange rate represents the relative price of two currencies, commonness of stochastic trends between the fundamental determinants of supply and demand...

In this paper, we study the dynamic interdependencies between high-frequency volatility, liquidity demand as well as trading costs in an electronic limit order book market. Using data from the Australian Stock Exchange we model 1-min squared mid-quote returns, average trade sizes, number of...

Using data for six OECD countries, this paper studies the effect of macroeconomic conditions on the mortality index kt in the well-known Lee-Carter model. Significant correlations are found with real GDP growth rates in Australia, Canada, and the United States, and with unemployment rate changes...