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Modelling Costs and Benefits of Financial Regulation - CIFR Project

Project Member(s): Menzies, G., Docherty, P.

Funding or Partner Organisation: Department of the Treasury (Centre of Excellence for International Finance and Regulation Consortium)

Start year: 2013

Summary: As the pendulum swings towards regulation from laissez-faire in the aftermath of the Global Financial Crisis (GFC), there is no more pressing question than how the benefits of regulation (prevention/containment of financial disruptions) compare with the potential harm done to the economy if regulation causes misallocation of resources. Computable General Equilibrium (CGE) models are an ideal tool for answering 'what if' questions about industries and Australian states in the event of, say, a serious recession in China.

Publications:

Docherty, P, Bird, R, Henckel, T & Menzies, GD 2016, 'Australian Prudential Regulation Before and After the Global Financial Crisis', CIFR Paper, no. 110, pp. 2-58.
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Menzies, G, Dixon, P & Rimmer, M 2016, 'In Praise of (Some) Red Tape: A New Approach to Regulation', ECONOMIC RECORD, vol. 92, no. 299, pp. 631-647.
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FOR Codes: Applied Economics, Finance Services