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