The Paul Woolley Centre for the Study of Capital Market Dysfunctionality at UTS has been established to research dysfunctionality in financial markets, and the financial institutions that operate within these markets. A capital market is dysfunctional when it suffers from chronic and systemic malfunctioning; a condition which can have far-reaching economic and social consequences.
The Centre will focus on the contribution to wealth creation of capital markets and financial institutions, and also on the effectiveness of the services provided by these institutions.
The Centre's research will concentrate on:
- identifying the effectiveness of pricing mechanisms within capital markets in directing capital to its optimal use;
- providing explanations for why markets might be dysfunctional in performing this allocative role;
- the contribution of financial institutions to the proper functioning of capital markets;
- measuring the associated economic and social costs attributable to any dysfunctionality; and,
- proposing possible remedies.
The Centre has three defined Research Groups: