Three Essays in Applied Macroeconomics

This thesis investigates the causes and consequences of macroeconomic fluctuations, with a central focus on the role of fiscal and monetary policy as tools for stabilisation. Chapter 2 examines how changes in government spending and taxation impact private investment. Chapter 3 estimates Australia’s NAIRU, offering insights into improving inflation forecasts and informing monetary policy decisions. Chapter 4 studies how Goods and Services Tax (GST) revenue is shared across Australian states and territories, comparing the current distribution framework to an optimally calibrated transfer rule.