Wednesday, August 16, 2017
Coal-fired power is only cheaper than renewable energy where the capital cost of the plant is sunk. For new power facilities, renewables is already cheaper. A factcheck by Ken Baldwin (ANU) Dylan McConnell (Uni Melbelbourne) and Tony Wood (Grattan Institute)in The Conversation runs through the numbers.
Monday, June 12, 2017
The claim that Australia has gone twenty-six years without a recession is true, but only if you accept three assumptions. Unfortunately, none of them has any official or intellectual basis. Tim Colebatch explains in Inside Story that that economics has no accepted definition of a recession. In public debate, the gap has been filled by the silly measure journalists love to use: a recession occurs when seasonally adjusted GDP goes backwards for two quarters.
Project financing should minimise the level of public subsidy needed to deliver the project; and where risk is borne by the private sector, it should be transparently priced and deliver clear value for money for the taxpayer. Marion Terrill (Grattan Institute) explains.
Friday, May 19, 2017
Jim Minifie (Grattan Institute) checks, and Rodney Maddock (Monash University) reviews the Treasurer's claims that Australian banks have a return on equity about twice that of overseas banks. While they find that claim is true, its not because Australian banks are earning super profits - it's because the banks of the US and Europe were affected badly by the Global Financial Crisis and are still under-performing.
Tuesday, May 9, 2017
Extending capital gains taxation to cover annual improvements in land value would improve discourage housing speculation and improve housing affordability. Brian Feeney (University of Queensland) explains.
Thursday, May 4, 2017
No one is going to make even short-term profits out of the Adani coal mine, with its huge upfront capital investment, unless they get a substantial subsidy from the taxpayer. And the long-term prospects look grim. David Peetz and Georgina Murray (Griffith University) explain that those who argue that Westpac’s decision was “illogical” are swimming against both the financial and technological tides.