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Real Economy and Financial Networks: Formation, Structure, Policy Responses

Funding: 2017: $60,000
2018: $150,000
2019: $176,000

Project Member(s): Anufriev, M.

Funding or Partner Organisation: Australian Research Council (ARC Discovery Projects)

Start year: 2017

Summary: Network approach is now gaining popularity in various areas of economics. This project applies the recent developments in networks to the Australian economy. We will extend an input-output network model to open economy including import-export links. Next, we will focus on the relationship between the real economy and the financial sector. We will further develop a network formation model for production and credit-lending relationships to investigate network evolution and perform counter-factual analysis. To estimate the parameters of the models we will advance estimation methodology. The models will be estimated on the Australian data. Our analysis will improve economic and macro-prudential policy responses to changing market conditions.

FOR Codes: Macroeconomics (incl. Monetary and Fiscal Theory), Econometric and Statistical Methods, Financial Economics, Expanding Knowledge in Economics, Macroeconomics not elsewhere classified, Industry Costs and Structure