Recent selected grant success Australian Research Council Neuroeconomic foundations of probability and value perception ARC Discovery Grant 2019 Years: 2019-2023 Investigators: Professor Agnieszka Tymula (University of Sydney) and Professor Paul Glimcher (New York University) This project aims to investigate well-known behavioural “biases” in probability and value perception through the lens of neurobiology. This project will generate new knowledge on human behaviour by combining theory and methodology from economics and neuroscience. Through its interdisciplinary approach, this project will provide a novel and braincompatible understanding of how people make decisions. This should deliver significant and tangible benefits by providing foundations for the “second wave” in behavioural economics, which builds upon the work of Kahneman and Tversky not just behaviourally, but also neurobiologically. Fiscal Policy in an Open Economy ARC Discovery Grant 2019 Years: 2019-2023 Investigators: Professor Mariano Kulish (University of Sydney), Professor James Morley (University of Sydney) and Associate Professor Francesco Zanetti (University of Oxford) This project aims to improve our understanding of the impact of commodity price changes. Over the past two decades, Australia has experienced unprecedented fluctuations in commodity prices. The fiscal position and potential of the economy depends on the extent to which commodity price changes are temporary or permanent. The project will uncover empirical regularities between commodity prices, unemployment across sectors and measures of fiscal policy. The project will build structural models of unemployment which will be estimated and used to assess implications for unemployment and budget deficits of commodity price shocks and to study the optimal design of fiscal policy. The project will benefit the conduct of economic policy in Australia. Intergenerational Disadvantage: Causes, Pathways, and Consequences ARC Linkage Project 2019 Years: 2020-2023 Investigators: Professor Deborah Cobb-Clark (University of Sydney), Dr Hayley Fisher (University of Sydney), Dr Nicolas Salamanca (University of Melbourne), Dr Sarah Dahmann (University of Sydney), Dr Susan Kluth (Department of Social Services), Dr Kai Liu (University of Cambridge) and Dr Anne Gielen (Erasmus University Rotterdam) This project aims to prevent poor Australian children from becoming poor adults by developing scientific evidence and creative policy approaches to overcome entrenched disadvantage. The Project will generate new knowledge on how social assistance dependence is linked across generations using new Australian data. Expected outcomes are the identification of i) the causal link between parents’ and children’s social assistance dependence; ii) the pathways through which youths overcome disadvantage; and iii) the role of family structure in transmitting disadvantage. Transforming the evidence base, the findings will have significant benefits in redesigning the Australian social safety net, promoting social and economic mobility.
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