New methods for the empirical study of aggregate demand under instability

Exploring the bounce back of the economy post-crisis


This is an Australian Research Council funded project seeking to quantify the effects of monetary policy on aggregate demand, notably around consumption and investment.

This research accounts for the presence of unstable economic conditions caused by institutional or behavioural changes, such as financial development/liberalisation and preference shocks in the economic analysis. To quantify these effects, Dr Leandro M Magnusson and his team are developing new econometric methods suitable for macroeconomics models with time-varying parameters. The outcomes of this research will contribute to understanding why the economy is unresponsive to monetary policy.

This project involves researchers from UWA, the University of Oxford and the University of Pavia. If you’d like to get involved, get in touch with Dr Magnusson using the details below.



Understand the impact of economic policies on the economy

Develop new statistical methods tailored for application to aggregate demand models with time-varying parameters

PhD and scholarship opportunities


Students completing a PhD as part of this project will work closely with Dr Magnusson and two University of Oxford collaborators. This means you may spend part of your PhD visiting the University of Oxford.

You’ll learn to develop new macroeconomic models and empirically investigate them using novel econometric methods. The project will benefit from your invaluable early career experience in advanced macroeconometrics, and it will strengthen your computer programing skills.

To discuss PhD options, contact Dr Magnusson using the details below.

Project scholarship

The Macroeconomics of Aggregate Demand Under Instability PhD Scholarship is available, providing AUD$27,000 per annum. For more information, visit our Scholarships website.


Find out more
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Contact project leader Dr Leandro M Magnusson