Economic Papers最新文献

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.

As the issue of agricultural household economic well-being begins to resurface, we use custom data sets to compare the financial position of agricultural households to the general Australian population. We find that agricultural households tend to have higher levels of wealth compared to households in the average Australian population, yet experience more income volatility on average. Our study brings attention to the important well-being issue while also highlighting the need to collect robust farm household data in order to better understand the complex dynamics of household well-being in the Australian agricultural sector.

This paper reviews the literature on the perceived individual-level demand-side barriers to and benefits from seeking and following financial advice. Our review reveals that poor financial literacy, lack of trust and financial adviser anxiety have all been found to dissuade individuals from pursuing professional financial advice. The limited literature on the effectiveness of financial advice in terms of financial well-being suggests a positive link. However, no study has collectively examined the influence of financial literacy, trust and financial adviser anxiety on financial advice seeking and well-being in Australia. We conclude by discussing further gaps, policy recommendations, the recently introduced amendments to the Australian Corporations Act and several directions for future research, which may provide theoretical and practical benefits to policy-makers, industry professionals, academics and individuals.

Inefficiency persistence is often ignored in empirical studies that assess school efficiency levels. Using longitudinal data on state and state-dependent private schools from 62 New Zealand territories, a dynamic random-effect stochastic frontier model is employed to obtain the magnitude of inefficiency persistence along with the measure of cost efficiency estimates. The results show that a naive non-dynamic model incorrectly shows New Zealand schools to be highly cost-efficient in short run. However, the dynamic model exposes the fact that New Zealand state schools face high persistence in cost inefficiency, which is limiting their ability to provide cost-efficient schooling in long run. Furthermore, an estimated 9% of the annual state school funding is lost due to the persistence in cost inefficiency. The findings of this study indicate that cost inefficiency among New Zealand schools appears to be long run, requiring significant policy change from the national government.

Advances in conceptualisation of financial well-being include factoring future outlook into models, as consumers under financial stress can still expect to be better off in the future. This study applies a financial well-being framework to Australian university students, defining financial well-being to be made up of a set of personal attributes, current money management indicators and expectations about the financial future. We find that being least satisfied with financial situation is associated with higher likelihoods of using short-term credit, not having a financial safety net, not being willing to take financial risks and having negative expectations of the future. The results of this study are useful for educators and policy-makers in designing policies and programmes for university students.

Australian business schools are often viewed by senior university managers as 'cash cows' because of their revenue-raising capacity. However, a competing view has emerged that challenges their status as 'cash cows' and contends, instead, that business schools should focus on maximising 'public value' as a means to enhance their legitimacy. Using the analytic framework of 'public value,' a broad cross section of Australian business schools deans was interviewed. These interviews afforded a greater understanding of how the tensions inherent in these competing narratives are reconciled, and how they impact on the day-to-day management of business schools in Australia.