Centre for Financial Econometrics

The centre recognises, develops and promotes research activities in our key strength areas. We also attract and retain high performing researchers and research teams in areas of strategic importance.


The 4th Applied Financial Modelling Conference 2018

The Centre hosted the 4th Applied Financial Modelling Conference from Thursday 1 to Friday 2 February 2018. Keynote addresses were delivered by Professor Russell Smyth, Monash University and Professor Joakim Westerlund, Deakin University.

Economic Modelling Special Issue Conference 2017

The Centre hosted a successful Economic Modelling Special Issue Conference from Thursday 15 June to Friday 16 June 2017. Keynote addresses were delivered by Professor Sushanta Mallick, Co-editor-in-Chief of Elsevier Journal, Economic Modelling journal, Professor Joakim Westerlund, Deakin University, and Professor Russell Smyth, Monash University.

Our current projects

A new classification of legal systems

This project aims to classify legal systems across the world, based on property rights. It looks at how laws vary across countries in terms of allocation and use of property rights on land.

Instrumental variables estimation without an exclusion restriction: a closer examination

This project explores the conditions under which Lewbel's (2012) IV approach can provide unbiased estimates in practice. The project aims to provide useful practical guidance to applied researchers that are planning to use Lewbel's IV approach in their own work.

The impacts of quantitative easing on developing economies

The QE policies from the US and Japan have led 'hot money' inflows to developing economies, such as China and Taiwan. This research will provide a general-equilibrium macroeconomic framework to examine the dynamics of exchange rates and stock prices, which can exhibit overshooting or mis-jumps in the adjustment processes to a new equilibrium.

Promotional competition in pharmaceutical firms in Bangladesh: does it affect prices and quality?

Bangladesh has experienced a significant growth in pharmaceutical industry over the last two decades. There is a growing concern among patients and medical experts about the quality of drugs produced by the local generic firms. This project analyses the welfare consequences of aggressive promotional advertisements in the promotion of pharmaceutical drugs in Bangladesh.

Inflation tax in the lab: an experimental study of posted prices and directed search with costly money

This project derives simple theoretical propositions regarding the effects of inflation in a model of directed search and monetary exchange. The model's predictions are then tested with a laboratory experiment that closely implements the theoretical framework.

The contractor game: a theoretical and experimental analysis

This project examines the contractor game, a two-stage bargaining game related to the ultimatum game. We analyse a simple game-theoretic model in which some players are standard economic agents, while others are averse to (advantageous or disadvantageous) inequity of money pay-offs and to (giving or receiving) lies. The model yields straightforward and intuitive predictions concerning how behaviour varies across the three games, which we test with a laboratory experiment.

Dutch disease and long-term productivity: evidence from firm level data in Australia

This project investigates the affect of currency appreciation on the productivity of domestic firms. Recent Australian experience provides a natural experiment to test the affect of Dutch disease on firm level productivity.

Aid allocation criteria

This project provides a comprehensive assessment of the rival criteria used by donors to allocate aid. The project ranks the relative importance of aid allocation criteria.

Our team


Director/Alfred Deakin Professor
Professor Paresh Narayan


Chair in Economics
Prof Joakim Westerlund

Dr Susan Sharma

Research Fellow
Mr Dinh Phan

Senior Lecturer
Dr Kannan Thuraisamy

Honorary professors

Professor Tarun Chordia
Goizueta Business School, Emory University, Atlanta, USA, Editor, Journal of Financial Markets 

Professor Bob Webb
Paul Tudor Jones II Research Professor, McIntire School of Commerce, University of Virginia, Editor, Journal of Futures Markets

Research assistants

Contact us

Centre for Financial Econometrics Director
Professor Paresh Narayan
+61 3 9244 6180
Email Prof Narayan

Faculty of Business and Law
Deakin University
Melbourne Burwood Campus 
221 Burwood Highway
Burwood Victoria 3125