Economic Papers最新文献

This study examines the impacts of trade policy uncertainties on bilateral trade balances (henceforth, BTBs) of the United States and Japan. This is achieved by using the newly created Trade Policy Uncertainty (henceforth, TPU) index and by also applying the recently created non-linear ARDL approach. The main empirical findings, in summary, are that changes in the TPU index have significant impacts on both countries’ BTBs. Furthermore, while increases in the TPU index in Japan improve US BTB, decreases worsen it. However, increases and decreases in the US TPU index have no impact on Japan’s BTB with the United States. This may lead to the interpretation that Japan’s exporters–importers or Japan’s trade policy are/is not sensitive to changes in the US TPU index, but they/it are/is sensitive to changes in Japan’s TPU index. Based on this result, we may re-classify (to some extent) Japanese exporters–importers as trade policy uncertainty avoidance people, referring to uncertainty avoidance people by Hofstede (1980), since Japanese are one of the highest uncertainty avoidance people in their socio-cultural-economic structure.

The paper presents analysis of market concentration in Australia’s stock market and explores what this might tell us about the state of competition in the real economy. It finds that, on most measures, Australia’s stock market is highly concentrated but is becoming less concentrated over time. Many studies, including leading books on competition policy, have used stock market concentration as a proxy for market concentration in the economy, usually due to data constraints. The paper warns against this. Using the stock market for competition analysis incorrectly defines markets and competition, excludes most competitors, ignores important market dynamics and leads to erroneous results. Declining stock market concentration should not be taken as a sign that competition in the economy is improving.

The paper presents an in medias res economic cost-benefit analysis of a Container Deposit Scheme (CDS) for beverage containers in the Australian Capital Territory (ACT), Australia. The paper examines all cost elements of the scheme – scheme design and administration, scheme coordination, beverage industry compliance, household participation, business participation and container redemption infrastructure and operating costs. The paper also examines all potential benefits – avoided waste collection and transport costs; avoided material recovery facility processing cost; avoided landfill cost; avoided street sweeping cost; value of avoided litter; and value of recyclates. A wide variety of data sources is employed, and some of the critical issues are examined via several approaches. The main finding of the paper is that the ACT CDS is clearly economically worthwhile. The in medias res CBA of the ACT CDS shows the scheme to be highly efficient and thus recommends the continuation of the scheme.

This work analyses the relationships between the banking sector and the economy as a whole in the United States between 1990 and 2016. The data are obtained from the Federal Reserve System (FED) and the Federal Deposit Insurance Corporation (FDIC). The methodology applied is canonical analysis, and this analysis will allow us to obtain composite indicators on the real and financial state of the economy, among other composite indicators. This study’s main contribution and originality is centred on this new way of addressing financial and economic stability. Its contributions to macroprudential policy, as well as the financial and economic stability measures it creates, are valuable.

Financial resilience is characterised by four sets of variables, namely economic resources, financial inclusion, financial capability and social capital. The purpose of this study is to examine the association between financial resilience and life satisfaction of Indigenous Australians using the (2014/2015) National Aboriginal and Torres Strait Islander Social Survey data. The results reveal that running out of money for living and problems in accessing financial services have significant negative implications on the life satisfaction of Indigenous Australians. The ability to raise money in an emergency, social connections and community support in times of crisis contributes to greater life satisfaction.

This paper presents an integrated framework for understanding the determinants of financial satisfaction in the context of two European nations with different cultural environments. The direct, indirect and interactive effects were tested through the path analysis method. It was found that to be financially capable is imperative because it governs the impacts of financial attitude and financial knowledge on financial satisfaction. Moreover, findings show that culture matters in explaining differences between countries. Hence, individualistic societies, compared to collectivistic ones, reflect a stronger relationship between financial attitude and financial satisfaction. Additionally, countries showing a high propensity in avoiding uncertainty reflect a negative association between risk tolerance and financial satisfaction, while those lacking such preference manifest a positive relationship.

The need for non-profit financial services increases with economic hardship. Consumers' experience of accessing non-profit financial counselling services in South Australia was explored across five focus groups. Thirty-six participants discussed service efficiency and potential improvements. The qualitative analysis we completed revealed five themes. Regarding non-profit financial services: (i) Financial counsellors are life changers; (ii) Microfinance is “critical for survival”; and (iii) They're “hidden”. For-profit products are (iv) Fast & easy “at a cost”; and there is (v) Frustration with broader system failures. Non-profit financial services assisted with consumption smoothing and emotional support, but without adequate income financial well-being was not established. Consumers rely on for-profit products in crisis situations. Findings support policy to build financial resilience and increase income.

This paper examines the role of monetary credibility and fiscal cyclicality in generating the trade-off between inflation rates and financial stability. We systematically develop simple theoretical models to shape the rationalisation framework, which demonstrates the role of fiscal cyclicality behaviour in arousing a trade-off for the monetary policy to target low inflation rates and a stable financial system at the same time. By utilising the generalised method of moment (GMM), we find that a credible monetary policy generates a trade-off between inflation and financial stability as long as the fiscal policy is procyclical.

For low-income or precariously employed households in Australia, the re-allocation of risk over the past forty years has four crucial economic dimensions: the fraying of the social security net; changes in labour market dynamics; heightened uncertainty arising from income volatilities; and new hazards generated by the financialisation of daily life. Household financial capabilities are negatively influenced by the compounding impacts of each of these risks. Case examples from a BSL study illustrate each impact and their interactions. The dominant idea that individual capabilities are malleable (and thus can be optimised) whilst circumstances and norms are fixed is countered by an expanded view of Sen’s/Nussbaum’s capability approach (CA) that includes collective capabilities. Collective capabilities can change norms, and so, the concept provides a needed link between the political and macroeconomic movement of risk re-allocation and individual or household financial capabilities. The Australian Unemployed Workers’ Union is used as an example to show how collective action can challenge structural conditions, and expand or protect the capabilities of individuals.