We analyse the key characteristics of simple models of overlapping generations where capital is endogenous, and money plays norole. The main focus is on the codyamics of interest rates, wages, and consumption with capital.

This paper reviews the effects of inflation and taxation on the financing of corporate investment, and on the allocation of investment among alternative assets. Two tax distortions were of particular importance during the 1980s: the non-taxation of capital gains and the double taxation of...

Several recent papers have explored the possibility that inflation-targeting central banks in small open economies pay too much attention to exchange rate fluctuations; changing short-term interest rates in response to fluctuations that have transient effects on inflation could be...

This paper exploits a policy-induced natural experiment that occurred in South Australia in the mid-1980s to generate a 'causal' estimate of the effect of schooling on the literacy and numeracy performance of school students in their middle years of secondary school (in Year 9 for most...

Government subsidies have provided a major source of funds to private schools in Australia for three decades. The increasing level of private school subsidies since the mid-1970s has contributed to a steady increase in the proportion of students enrolled in private schools. This growth in the...

International research suggests that differences in teacher performance can explain a large portion of student achievement. Yet little is known about how the quality of the Australian teaching profession has changed over time. Using consistent data on the academic aptitude of new teachers, we...

This paper describes the Higher Education Contribution Scheme (HECS), Australia's income contingent charge mechanism, and analyses its impact on the social composition of university participation. We analyse university participation data from three cohorts of young Australians. The first cohort...