2011 PhD Conference

in

Economics and Business

19th – 20th November 2011

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2011 PhD Conference in Economics and Business

Hosted by The University of Queensland

The Annual PhD Conference in Economics and Business is a joint venture of the Centre for Economic Policy Research (CEPR), Australian National University (ANU), the Economic Policy Research Centre (EPRC), University of Western Australia (UWA) and the School of Economics, University of Queensland. The conference was first convened in 1987 and is held alternately at ANU and UWA.

The PhD Conference in Economics and Business is unique. Doctoral students who are in the process of completing their thesis are invited to submit papers for presentation to a group of academic discussants with special expertise in the topics they are assigned.

The conference aims to provide the students with an assessment of their presentational skills and a constructive critique of their research by a group of peers and senior academics. It is also an opportunity to access a wider academic network and the postgraduate job market.

The conference is made possible each year by the generous financial contributions from government agencies, departments, and the corporate business sectors.

ORGANISING COMMITTEE

Professor Paul Frijters Dr Grace Lordan Louise West

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Dear Participant, Welcome to the 24th annual PhD conference in Economics and Business, jointly organised by the University of Queensland, the Australian National University, and the University of Western Australia. The PhD Conference in Economics and Business is unique. Doctoral students who are in the process of completing their thesis are invited to submit papers for presentation to a group of academic discussants with special expertise in the topics they are assigned. The conference aims to connect PhD students who are about to finish their doctoral degrees with potential employers from academic, government, and business institutions. It is also a great occasion to get to know other PhD students and for senior academics to meet up with leaders in business and government. The conference is made possible each year by the generous support of sponsors from government agencies and departments, and the corporate and business sector. We thank them here for their contributions this year and hope they will continue to support the conference in future years. The highlights this year are the keynote lecture by Professor Robert Gregory, undoubtedly one of Australia's best-known economists, and the evening speech on the Saturday dinner by John Edwards, who currently holds the economists' position on the board of the Reserve Bank of Australia. Other highlights are the competitions for papers and discussants; as in previous years, the 2011 conference will have a best paper prize, to be voted on by participants in the conference, and a best discussant prize, also to be voted on by participants. These prizes are hotly contested as the winners achieve immortal fame amongst their peers. On behalf of all the organisers, we wish you a pleasant conference! Paul, Grace, and Louise.

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Conference Sponsors The organising committee would like to take this opportunity to thank the sponsors for their generous support of the conference. The Department of Finance and Deregulation ANZ Bank Department of Infrastructure and Transport Agricultural Development Policy Australian Centre for International Agricultural Research The Department of Resources, Energy and Tourism The Faculty of Business Economics, Law and Tourism, The University of Queensland The Reserve Bank of Australia The Australian Finance Conference and AELA The Economics Society of Australia Frontier Economics The Productivity Commission The Queensland Treasury The Commonwealth Treasury Conference Sponsor Representatives Simone Wong Frontier Economics Hiresh Devaser Frontier Economics Nhu Che Bureau of Resources and Energy Economics Michael Kouparitsas Australian Government Treasury Spiro Premetis Australian Government Treasury

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Participants Grace Lordan University of Queensland John Edwards Key Note Speaker Adam Loch University of South Australia Qiaomin Li University of Auckland Nan Jiang University of Auckland Jorge Montecinos University of Queensland Pablo Pinto University of Queensland Md Shahiduzzaman University of Southern Queensland Murphy Lee University of Technology Sydney Fei Yu University of Western Australia Liang Li University of Western Australia Zahid Hasan University of Western Sydney Dana Hanna Australian National University Guochang Zhao Australian National University Justin Lei Wang Australian National University Losina Purnastuti Curtin University Ben Wang Macquarie University Fatemeh Nazifi Macquarie University Mohammad Chowdhury Deakin University Rejaul Bakshi Deakin University Jianan Guo Deakin University Neelesh Gounder Griffith University Murat Besnek La Trobe University Salma Ahmed Monash University Vincent Xiang Monash University Ole Maneesoonthorn Monash University Sumudu Perera University of New England Jonas Fooken Queensland University of Technology Timothy Sharpe University of Newcastle Ha Viet Nguyen University of New South Wales Agne Suziedelyte University of New South Wales Alan Rai University of New South Wales Hong Il Yoo University of New South Wales Jun Feng University of New South Wales Chengsi Wang University of New South Wales Thusitha D. Marawila University of Sydney Yao Liu University of Sydney Imogen Halstead University of Melbourne Michael Hililan University of Wollongong

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Confirmed Discussants Alicia Rambaldi University of Queensland David Adamson University of Queensland KK Tang University of Queensland Flavio Menezes University of Queensland Fabrizio Carmignani University of Queensland Paul Frijters University of Queensland Prasada Rao University of Queensland Steve Harrison University of Queensland Andy McLennan University of Queensland Catherine De Fontenay Melbourne University Nikos Nikiforakis Melbourne University Jenny Williams Melbourne University Deborah Cobb-Clark Melbourne University Paul Jensen Melbourne University Ken Clements University of Western Australia Uwe Dulleck Queensland University of Technology Daniel Smith Queensland University of Technology Don Harding La Trobe University Alison Booth Australian National University Daniel Suryadarma Australian National University David Stern Australian National University Robert Gregory Australian National University Martin Richardson Australian National University Xin Meng Australian National University Gigi Foster University of New South Wales James Hansen Reserve Bank of Australia Stephen King Monash University Michael Shields Monash University David Johnston Monash University Lata Gangadharan Monash University Michael Chng Deakin University David Pearce CIE Jeffrey Sheen Macquarie University Terry Walter University of Technology Sydney Susan Thorp University of Technology Sydney Kevin Daly University of Western Sydney

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Conference Program

Friday 18th November Time Session Location 18:00 Registration and Reception BBQ The Deck, St Leo’s College

Saturday 19th November Time Session Location

8:30 Registration and coffee Abel Smith Lecture Theatre Bldg (23), map ref J7

8:55-9:00 Welcome Abel Smith Lecture Theatre

Bldg (23), map ref J7

9:00-10:40 Session 1

Parallel Session A1: Monetary Policy Parallel Session B1: Australian Environment Parallel Session C1: Theory

Bldg (24) room 304 Bldg (24) room 402 Bldg (24) room 603

10:40-11:15 Coffee and tea Abel Smith Lecture Theatre Bldg (23), map ref J7

11:15-12:55

Session 2 Parallel Session A2: Fossil Fuels Finance Parallel Session B2: Agriculture and Development Parallel Session C2: Health and Development

Bldg (24) room 304 Bldg (24) room 402 Bldg (24) room 603

13:00-14:30 lunch Rooftop Cafe, level 3 Colin Clark Building (39)

14:30-16:10 Session 3 Parallel Session A3: US Finance Parallel Session B3: Industrial Organisation Parallel Session C3: Asian Equity Markets

Bldg (24) room 304 Bldg (24) room 402 Bldg (24) room 603

16:10-16:45 Coffee and tea Abel Smith Lecture Theatre Bldg (23), map ref J7

16:45- 17:45 Keynote lecture by Professor Robert Gregory Abel Smith Lecture Theatre Bldg (23), map ref J7

18:00 Transport to dinner Blair Drive 18:30 Conference Reception Rydges Hotel, South Bank 19:00-21:00 Dinner and Keynote Speech by John Edwards Rydges Hotel

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Sunday 20th November Time Session Location 9:00-10:40 Session 4

Parallel Session A4: Resources Parallel Session B4: Household Behaviour Parallel Session C4: Simulation Studies in Trade

Bldg (24) room 304 Bldg (24) room 402 Bldg (24) room 603

10:40-11:15 Coffee and tea Abel Smith Lecture Theatre Bldg (23), map ref J7

11:15-12:55

Session 5 Parallel Session A5: Micro-studies in Finance Parallel Session B5: China Micro Parallel Session C5: Australian Children

Bldg (24) room 304 Bldg (24) room 402 Bldg (24) room 603

13:00-14:30 lunch Rooftop Cafe, level 3 Colin Clark Building (39)

14:30-16:10 Session 6 Parallel Session A6: Macro-empirical Finance Parallel Session B6: Price Fluctuations Parallel Session C6: Econometrics/Poverty

Bldg (24) room 304 Bldg (24) room 402 Bldg (24) room 603

16:10-16:30 Coffee and tea & Voting Abel Smith Lecture Theatre Bldg (23), map ref J7

16:40- 17:00 Best paper + Best Discussant Prize Abel Smith Lecture Theatre Bldg (23), map ref J7

End

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SESSION A1: MONETARY POLICY Bldg ( 24) room 304 Chairperson: (last discussant) Michael Hillian, University of Wollongong “Transmission of Monetary Policy in Vanuatu” Daniel Suryadarma, Australian National University Ben Wang, Macquarie University “Animal Spirits and Optimal Monetary Policy” James Hansen, Reserve Bank of Australia SESSION B1: AUSTRALIAN ENVIRONMENT Bldg ( 24) room 402 Chairperson: (last discussant) Adam Loch, University of South Australia “An Assessment of Trade Constraints on Environmental Flows” David Adamson, University of Queensland Md Shahiduzzaman, University of Southern Queensland “Interfuel Substitution in Australia: A Way Forward in Achieving Environmental Sustainability” Ken Clements, University of Western Australia SESSION C1: THEORY Bldg ( 24) room 603 Chairperson: (last discussant) Pablo Pinto, University of Queensland “An Agent-based Modelling Approach to Investigate Performance on Inter-Organizational R&D Collaborations” Paul Jensen, University of Melbourne Yao (Franklin) Liu, University of Sydney “A Theory of Reputational Cheap-talk with Endogenous Verifiability of States” Martin Richardson, Australian National University SESSION A2: FOSSIL FUELS FINANCE Bldg ( 24) room 304 Chairperson: (last discussant) Zahid Hasan, University of Western Sydney “Oil Price and Coal Industry Returns: International Evidence” Terry Walter, University of Technology Sydney Murat Besnek, La Trobe University “Competition or Price Discrimination? The Price Cycle in Petrol Retailing” Stephen King, Monash University

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SESSION B2: AGRICULTRE AND DEVELOPMENT Bldg ( 24) room 402 Chairperson: (last discussant) Imogen Halstead, University of Melbourne “On-farm Learning About a New Technology: Pineapple in Ghana” Lata Gangadharan, Monash University Thusitha Marawila, University of Sydney “Economics of Agricultural Land Conversion: The Case of Coconut Plantations in Sri Lanka” Steve Harrison, University of Queensland SESSION C2: HEALTH AND DEVELOPMENT Bldg ( 24) room 603 Chairperson: (last discussant) Salma Ahmed, Monash University “Health Consequences of Child Labour in Bangladesh” Alison Booth, Australian National University Rejaul Bakshi, Deakin University “Social Capital, Health Behaviour and Hygienic Practices of the Extreme poor in Rural Bangladesh” Deborah Cobb-Clark, University of Melbourne SESSION A3: US FINANCE Bldg ( 24) room 304 Chairperson: (last discussant) Alan Rai, University of New South Wales “Market Liquidity and Funding Liquidity in U.S. Bonds” Michael Chng, Deakin University Vincent Xiang, Monash University “Transmigration Across Price Discovery Categories: Evidence from the U.S. CDS and Equity Markets” Daniel Smith, Queensland University of Technology SESSION B3: INDUSTRIAL ORGANISATION Bldg ( 24) room 402 Chairperson: (last discussant) Jorge Montecinos, University of Queensland “Public-Private Partnerships and Contract Regulation” Catherine De Fontenay, University of Melbourne Fei Yu, University of Western Australia “Are National Patent Offices Innovation Promoters or Blockers: A Comparative Study” Uwe Dulleck, Queensland University of Technology

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SESSION C3: ASIAN EQUITY MARKETS Bldg ( 24) room 603 Chairperson: (last discussant) Murphy Lee, University of Technology Sydney, TBA “The Packaging of Small Trades: Evidence of Price Impact Costs on Block Trading from the Singapore Exchange” Susan Thorp, University of Technology Sydney Jianan Guo, Deakin University “Dividend Policy and Subsequent Earnings Growth: Evidence from the Chinese Stock Market” Kevin Daly, University of Western Sydney SESSION A4: RESOURCES Bldg ( 24) room 304 Chairperson: (last discussant) Liang Li, University of Western Australia “ How much are resource projects worth? A capital market perspective” Don Harding, La Trobe University Nan Jiang, Auckland University “Technical Efficiency and Technological Gap of New Zealand Dairy Farms: A Stochastic Meta-frontier Model”

Prasada Rao, University of Queensland SESSION B4: HOUSEHOLD BEHAVIOUR Bldg ( 24) room 402 Chairperson: (last discussant) Jimmy Feng, University of New South Wales “Who is Voluntarily Saving for Retirement? Evidence from Australian Superannuation” Bob Gregory, Australian National University Hong Il Yoo, University of New South Wales “An Empirical Analysis of Disability and Household Expenditure Allocations” Jenny Williams, University of Melbourne SESSION C4: SIMULATION STUDIES IN TRADE Bldg ( 24) room 603 Chairperson: (last discussant) Neelesh Gounder, Griffith University “The Determinants of Household Poverty in Fiji” David Pearce, The Centre for International Economics Ha Viet Nguyen, University of New South Wales “Trade Liberalization in a Small Open Economy: An Application of the Overlapping Generations and Multi-sector Computable General Equilibrium Model to Australia” Paul Frijters, University of Queensland

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SESSION A5: POLICY ORIENTED MICRO-STUDIES Bldg ( 24) room 304 Chairperson: (last discussant) Timothy Sharpe, University of Newcastle “Investigating Financial Crowding-out: The Imperative of Institutional Arrangements” Jeffrey Sheen, Macquarie University Chengsi Wang, University of New South Wales “Informative Advertising, Consumer Search and Transparency Policy” Flavio Menezes, University of Queensland SESSION B5: CHINA MICROECONOMICS Bldg ( 24) room 402 Chairperson: (last discussant) Jonas Fooken, Queensland University of Technology “Labour Market Discrimination Based on Hukou Status: An Artefactual Fieldexperiment” Nikos NikiForakis, University of Melbourne Guochang Zhao, Australian National University “The Intergenerational Effect of the Chinese Cultural Revolution n Education” Gigi Foster, University of New South Wales SESSION C5: CHILDREN Bldg ( 24) room 603 Chairperson: (last discussant) Dana Hanna, Australian National University “An IV Approach to Determining the Effect of Family Size, Birth Order and Sibling Separation on the Cognitive Development of Children” Michael Shields, Monash University Agne Suziedelyte, University of New South Wales “The Effect of Video Game Playing on Childhood Overweight” David Johnston¸ Centre for Health Economics, Monash University SESSION A6: MACRO-EMPIRICAL FINANCE Bldg ( 24) room 304 Chairperson: (last discussant) Qiaomin Li, University of Auckland “The Effects of ASEAN-China Free Trade Agreement on Foreign Direct Investment” K K Tang, University of Queensland Mohammad Chowdhury, Deakin University “An Empirical Inquiry Into the Role of Product Diversification on Exchange Rate Regime Choice” Fabrizio Carmignani, University of Queensland

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SESSION B6: PRICE FLUCTUATIONS Bldg ( 24) room 402 Chairperson: (last discussant) Lei Wang, Australian National University “Segmented Money Market, Credit Constraint and asset prices” Andy McLennan, University of Queensland Fatemeh Nazifi, Macquarie University “Assessment of the Strength of Price Convergence Between EUA and CER Carbon Prices” David Stern, Australian National University SESSION C6: ECONOMETRICS\POVERTY Bldg ( 24) room 603 Chairperson: (last discussant) Ole Maneesoonthorn, Monash University “Probabilistic Forecasts of Volatility and its Risk Premia” Alicia Rambaldi, University of Queensland Sumudu Perera, University of New England “Welfare and Poverty Impacts of Trade Reforms in South Asia” Xin Meng¸ Australian National University

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Social Program

Friday 18th November Time Function Location 18:00 Registration and Reception BBQ

Renew old acquaintances and meet new contacts at the official Conference

The Deck, St Leo’s College, The University of Queensland, St Lucia Campus

Cost: Inclusive

Saturday 19th November Time Function Location 19:00 -23:30 Conference Dinner

Rydges Hotel, located on the South Bank is a unique riverside venue in the heart of the city of Brisbane. Enjoy a relaxing night of fabulous food, wine & good company.

Rydges Hotel, South Bank

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General Information About Brisbane Brisbane, Queensland’s capital city is a diverse, green city with a great climate. Brisbane is Australia’s third largest city, and boasts a unique relaxed lifestyle. Visitors to Brisbane can enjoy galleries, museums, great nightlife, markets and festivals in the Australian city, or head further afield to explore the river, mountains, beaches and forests. Brisbane operates on Eastern Standard Time, and does not observe Daylight Saving Time. Brisbane Inner City Map

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Rydges Hotel, South Bank Map

About The University of Queensland The 2011 PHD Conference will be held at the University of Queensland at the St Lucia campus. The University of Queensland's St Lucia campus is considered by many to be Australia's most attractive University campus. It is located seven kilometres from the city's heart on a magnificent 114-hectare site in a bend of the Brisbane River. A map of the campus can be downloaded from the Conference website http://www.uq.edu.au/economics/phd-conference-economics-business

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Airport Transfers Brisbane’s Airtrain travels from Brisbane Airport to the CBD in 22 minutes, and operates from 5.00am 8.00pm daily. Fares can be purchased at the airport, at stations or online at www.airtrain.com.au. Taxi Companies Brisbane’s major taxi companies include: • Yellow Cabs - Phone: 13 19 24 • Black and White Cabs - Phone: 13 32 22 Car Parking Parking at the St Lucia campus on the weekend is free, but can often be limited. To reduce parking and traffic pressures, the University encourages public transport, walking and cycling as alternatives to driving to UQ. Paid parking applies on the St Lucia Campus between 7am and 9pm Monday to Friday. All-day parking areas at St Lucia are indicated on the parking guide maps by the colour green. Please refer to the UQ website at www.uq.edu.au/about/transport for further information and to download parking maps. Directions to St Lucia Campus By Car - The main entrance to the University is along Sir Fred Schonell Drive, located on Map 179 F2 of the UBD Brisbane "Refidex" Street Directory. From Brisbane's Central Business District, Sir Fred Schonell Drive is most easily accessed via Coronation Drive. By Ferry - The CityCat ferry is the most enjoyable and often the most convenient means of getting to the St Lucia campus. The campus CityCat terminal is located near the corner of Sir William MacGreggor Drive and Blair Drive. The Brisbane City Council provides a map of all CityCat stops (PDF). For further information and timetables, visit www.translink.com.au. By Bus - There are two bus stations located at the University of Queensland - Chancellor's Place bus station and UQ lakes bus station. From Brisbane's Central Business District, the Brisbane City Council bus routes which run directly to the University of Queensland are the 412 (Express from City to Chancellor's place station), the 411 (City to Chancellor's place station) and the 109 (City to UQ lakes station). Other BCC bus routes which stop here are the 402 (Toowong to Chancellor's Place station), the 428 (Indooroopilly to Chancellor's Place station), the 427 (Chapel Hill to Chancellor's Place station), the 432 (Kenmore to Chancellor's Place station), the 414 (West Taringa to

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Chancellor's Place station),the 209 (Carindale Interchange to UQ Lakes station), the 169 (Eight Mile Plains busway station to UQ Lakes station) and the 139 (Calamvale to UQ Lakes Station). The main bus stop on the St Lucia campus is located at Chancellor's Place near the J.D. Story building. The other bus station is located at UQ Lakes (near Field No.3 and Alumni teaching garden). For further information and timetables, visit www.translink.com.au. By Train - The nearest train station to the St Lucia campus is Toowong, on the Citytrain Ipswich Line. From Toowong Station, cross Benson Street and catch a bus to UQ - the 402, 411, or 412. Alternatively the Dutton Park stop on the Beenleigh/Ferny Grove train line is situated near the Eleanor Schonell Bridge. It is possible to walk from this station or catch the 109 bus from Annerley road over the Eleanor Schonell bridge to the St Lucia campus. For further information and timetables, visit www.translink.com.au Security Please ensure that you take all items of value with you at all times when leaving a room. Do not leave bags or laptop computers unattended. Temperature The weather in Brisbane is sub-tropical. In Brisbane in November the average maximum temperature is 30 degrees Celsius, and the average minimum temperature is 20 degrees Celsius. Local Transport Taxi ranks are located in front of the Domestic Terminal at Brisbane Airport, and near most major hotels in the CBD. A taxi from the airport to the CBD is approximately $40.00, and can be more during peak times. Black & White Cabs: 133 222 Yellow Cabs: 131 924 The public transport system in Brisbane consists of buses, trains and ferries. The Loop is a free and convenient bus service travelling in both directions around the CBD. The Loop operates every ten minutes from any red CBD bus stop, Monday to Friday from 7.00am to 5.50pm. The City Cat ferry link the University of Queensland St Lucia campus with the City. For further information and timetables, visit www.translink.com.au.

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