Economics of change
Campaigners for change in the developing world have a tendency to pin commendable aims on a shaky grasp of economics. Rather than join the chorus shooting holes in their arguments, Professor Brett Inder finds support in sophisticated economic theories and techniques for such concepts as fair trade and cancellation of debt.
Brett’s interest in development economics is based on the premise that change is possible. “That’s the whole reason for doing it,” he says.
It’s not the whole focus of his attention. Brett also develops econometrics techniques that provide accurate readings of the ‘messy’ and complex data economists deal with as they try to determine cause and effect in everyday life.
This takes him into such areas such as the provision of services to people with mental illness, for a current project with Southern Health backed by an Australian Research Council grant. Separate research he is undertaking on mental illness and the labour market is funded by beyondblue.
“We look for nuanced ways of answering questions about, for example, whether a labour market program is effective,” Brett says.
Development research has taken him to South Africa, Sri Lanka, Papua New Guinea and most recently East Timor, where he is engaged in an AusAID-funded project on improving the welfare of coffee-producing households.
For about a fifth of the country’s population, coffee is the sole source of income. Most of the growers have only tiny farms and are paid once a year, at harvest time in June or July. February and March have come to be known as “the hungry months”.
Brett’s project, which runs for three years, surveys 800 households just after harvest, and again six months later, when they have usually run out of money. He hopes to determine the impact on health, schooling and general quality of life for families who rely on an annual payment that is subject to market and seasonal volatility.
Helping people save is a goal, but for those on extremely low incomes it may not be feasible. A bigger difference might be gained by increasing earnings, perhaps through involvement in more stages of coffee production, or by diversification into crops harvested at different times.
Experience has shown Brett that solutions are never simple.
“People are always criticising wasteful use of aid,” he says. “Aid is only wasteful because development is hard. To take a bunch of poor people and move them out of poverty is a very hard thing. It’s not as easy as just pouring more money in.”
Part of the solution is to understand more about what does and does not work, and here researchers have an important role.
“If we want better aid, we have to have better development, and if we want better development, we have to have better research about development.”
Doctors go to developing countries to contribute their medical skills, he says; engineers go to build things. “If you’re an academic, you use your mind to try to improve the understanding of what’s going on and try to point people in certain directions for what seems the most valuable thing to do.”
Strachan, R.W., Inder, B.A., 1999, Bayesian trace statistics for the reduced rank regression model, Monash University, Melbourne Vic Australia.
Maharaj, E.A., Inder, B.A., 1999, Forecasting time series from clusters, Monash University, Melbourne Vic Australia.
Inder, B.A., Snyder, R.D., 1997, Trend stability and structural change: An extension to the M1 forecasting competition, Monash University, Melbourne Vic Australia.
Inder, B.A., 1997, Applications of mathematics and statistics in business and economics: some case studies for VCE, in Mathematics: Imagine the Possibilities!, Mathematical Association of Victoria, Melbourne Vic Australia, pp. 135-140.
Sharma, A., Inder, B., 2011, Impact of co-located general practitioner (GP) clinics and patient choice on duration of wait in the emergency department, Emergency Medicine Journal [P], vol 28, issue 8, BMJ Group, London UK, pp. 658-661.
Cornwell, K.A., Forbes, C.S., Inder, B.A., Meadows, G.N., 2009, Mental Illness and its effects on labour market outcomes, Journal of Mental Health Policy and Economics [P], vol 12, issue 3, International Center of Mental Health Policy and Economics, Italy, pp. 107-118.
Cornwell, K.A., Inder, B.A., 2008, Language and labour markets in South Africa, Journal of African Economies, vol 17, issue 3, Oxford University Press, UK, pp. 490-525.
Cornwell, K.A., Inder, B.A., 2007, Evidence for the ineffectiveness of debt rescheduling as a policy instrument, Applied Economics, vol 39, issue 17, Routledge, UK, pp. 2269-2278.
Plahe, J.K., Inder, B.A., Nyland, C., 2006, An evaluation of Australia's proposal for improved market access for products from least developed countries, Journal of the Asia Pacific Economy, vol 11, issue 3, Routledge, Abingdon UK, pp. 292-307.
Forbes, C.S., Inder, B.A., Raman, S., 2006, Measuring the cost of leaving care in Victoria, Children Australia, vol 31, issue 3, Oz Child - Children Australia, South Melbourne Vic Australia, pp. 26-33.
Kalev, P.S., Inder, B.A., 2006, The information content of the term structure of interest rates, Applied Economics, vol 38, issue 1, Routledge, UK, pp. 33-45.
Deumert, A., Inder, B.A., Maitra, P., 2005, Language, informal networks and social protection: Evidence from a sample of migrants in Cape Town, South Africa, Global Social Policy, vol 5, issue 3, SAGE Publications, London UK, pp. 303-328.
Strachan, R.W., Inder, B.A., 2004, Bayesian analysis of the error correction model, Journal of Econometrics, vol 123, Elsevier BV, Switzerland, pp. 307-325.
Smyth, R.L., Inder, B.A., 2004, Is Chinese provincial real GDP per capital nonstationary? Evidence from multiple trend break unit root tests, China Economic Review, vol 15, Elsevier Ltd, UK, pp. 1-24.
Bollen, B.E., Inder, B.A., 2003, A comparison of estimators daily realised volatility, Finance Letters, vol 1, Global EcoFinance, UK, pp. 29-34.
Inder, B.A., O'Brien, T., 2003, The endowment effect and the role of uncertainty, Bulletin of Economic Research, vol 55, issue 3, Blackwell Publishing Ltd, UK, pp. 289-301.
Bollen, B., Inder, B., 2002, Estimating daily volatility in financial markets utilizing intraday data, Journal of Empirical Finance, vol 9, Elsevier Science BV, Netherlands, pp. 551-562.
Nahar, S., Inder, B., 2002, Testing convergence in economic growth for OECD countries, Applied Economics, vol 34, issue 16, Routledge, UK, pp. 2011-2022.
Goss, B.A., Avsar, S.G., Inder, B., 2001, Simultaneity, rationality and price determination in US live cattle, Australian Economic Papers, vol 40, issue 4, Blackwell, UK, pp. 500-519.
Silvapulle, P., Inder, B.A., 1998, Yield spreads and interest rate movements: A cointegration approach, Accounting Research Journal, vol 11, 2, QUT, Brisbane Qld Australia, pp. 378-386.
In, F., Inder, B.A., 1997, Long-run relationships between world vegetable oil prices, The Australian Journal of Agricultural and Resource Economics, vol 41, Blackwell, Oxford, pp. 455-470.
Inder, B.A., Maitra, P., 2004, Social pensions, migration and household composition: evidence from South Africa, Program and Abstract Book: Proceedings of the Economic Society of Australia's 33rd Conference of Economists 2004, 27 September 2004 to 30 September 2004, The Economic Society of Australia, www.ecosoc.org.au/ace2004, pp. 1-42.
Strachan, R.W., Inder, B.A., 1999, Approximate Bayes factors and Bayesian trace statistics, Proceedings: ESAM99 (Econometric Society Australasian Meeting), Sydney, 7-9 July 1999, University of Technology, Sydney, Sydney NSW Australia, pp. 1-25.
Grose, S.D., Inder, B.A., 1999, Testing for a structural break in the linear model with non-stationary regressors, Proceedings: ESAM99 (Econonometric Society Australasian Meeting), Sydney, 7-9 July 1999, University of Technology, Sydney, Sydney NSW Australia, pp. 1-27.
Raman, S., Inder, B.A., Forbes, C.S., 2005, Investing for success: The economics of supporting young people leaving care, Centre for Excellence in Child and Family Welfare, Melbourne Vic Australia, pp. 1-68.
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