Economics Explored

Discussion of Stephanie Kelton’s book The Deficit Myth, which is popularising Modern Monetary Theory, between Economics Explained host Gene Tunny and his colleague Ben Scott from Adept Economics. Resources mentioned in the discussion include:Reserve Bank of Australia Governor Philip Lowe’s speech COVID-19, the Labour Market and Public Sector Balance SheetsOlivier Blanchard’s paper Public Debt and Low Interest Rates

Professor Henry Ergas and Joe Branigan have just had a new paper published by the Menzies Research Centre, COVID19: Getting Australia Safely Back to Work. Economics Explained host Gene Tunny speaks with Joe Branigan, Director of Tulipwood Economics, about the paper.For a sample of Joe’s comments and a link to an interview with Professor Ergas, check out:Suppression preferred over more costly elimination strategy say Ergas & Branigan

Economics Explained host Gene Tunny speaks with Professor Rodney Strachan regarding his recent video on the Challenges of Forecasting in the COVID-19 Pandemic.Professor Rodney Strachan is Professor of Econometrics at the University of Queensland in Brisbane, Australia. Rodney received his PhD from Monash University in 2000. His research focuses on Bayesian analysis, econometric theory, and time series analysis. Rodney came to UQ from the Australian National University where he was a professor and the deputy head of the Research School of Economics.Links relevant to this episode include:Koop and Potter’s 2007 paper A Flexible Approach to Parametric Inference in Nonlinear Time Series Models (highly technical)Autoregressive (AR) modelDummy variablesThere were a few other technical concepts mentioned in this episode which I’ll aim to cover in future episodes. 

Economics Explained host Gene Tunny speaks to Dr Boyd Blackwell on the use of economic techniques to value the environment. Boyd is Director of AquaEquis Economic Consulting and the President of the Australian and New Zealand Society of Ecological Economics. Links relevant to the discussion include:Deloitte Value of the Great Barrier Reef reportConversation article critiquing economic value estimate of GBRBoyd’s economic analysis of Australian coastal wastewater outfallsSome number is better than no number articleNSW biodiversity offset schemeTravel cost method

Economics Explained host Gene Tunny presents and elaborates on his opening remarks to the Queensland Parliamentary Inquiry on the state government’s economic response to COVID-19. The remarks are relevant to state or sub-national governments in countries other than Australia. Here are some relevant links:COVID19: Getting Australia Safely Back to Work (the new Menzies Research Centre paper from Dr Henry Ergas and Joe Branigan questioning the net benefits of lockdowns)The New Bradfield scheme proposes moving floodwaters from north to south, but its feasibility is in questionAustralian Government 2009 Updated Economic and Fiscal Outlook (re. expenditure growth fiscal rule)Opening remarks to Qld Parliamentary Inquiry on economic response to COVID-19Australian coverage of my upcoming Qld Parliamentary Inquiry appearanceQld Gov’t COVID-19 Adaption Grants program poorly designed

Economics Explained host Gene Tunny discusses dynamic pricing, which is used by Uber and airlines among other businesses, with his Adept Economics colleague Ben Scott. Resources mentioned in the conversation include:Tim Harford's The Next Fifty Things that Made the Modern EconomyUber and airline dynamic pricing models can be viewed as both fair and predatoryQPAC/QTIX to trial Uber-style surge pricing to boost revenueMatching and Dynamic Pricing in Ride-Hailing PlatformsHe has 17,700 Bottles of Hand Sanitizer and Nowhere to Sell ThemDynamic pricing: Retailers using artificial intelligence to predict top price you'll pay

Economics Explained Host Gene Tunny discusses unfreezing discount rates for infrastructure projects with Marion Terrill, Transport and Cities Program Director at the Grattan Institute, a leading Australian think tank. Marion is a leading policy analyst with experience that ranges from authoring parts of the 2010 Review of Australia’s Future Tax System to leading the design and development of the MyGov account. She has provided expert analysis and advice on labour market policy for the Australian Government, the Business Council of Australia and at the Australian national university. She joined the Grattan Institute in April 2015 to establish the Transport Program, and has published on investment in transport infrastructure, cost overruns, value capture, congestion, and discount rates.Here is a link to Marion’s 2018 report on discount rates co-authored with Hugh Batrouney:Unfreezing discount rates: transport infrastructure for tomorrowThe Resources for the Future Working Paper I quote from in my introductory remarks is Discounting for Public Cost–Benefit Analysis

Professor Tony Makin of Griffith University speaks about his new CIS Policy Paper A Fiscal Vaccine for COVID-19 with Economics Explained host Gene Tunny. In Tony’s words, “the paper considers the resurgence of crude Keynesianism before highlighting risks of the fiscal legacy.”Tony Makin is Professor of Economics at Griffith University and has previously taught at the University of Queensland, the Lee Kuan Yew School of Public Policy at the National University of Singapore and in the Australia and New Zealand School of Government (ANZSOG) program. His field of expertise is international macroeconomics and public finance and he has previously served as an economist with the International Monetary Fund and in the Australian federal departments of Finance, Foreign Affairs and Trade, The Treasury and Prime Minister and Cabinet. He has also been Director of the APEC Study Centre at Griffith University, and Australian convener of the structural issues group of the Pacific Economic Cooperation Council (PECC).Resources mentioned in the conversation include:Australia’s Competitiveness: Reversing the Slide by Tony MakinResponse to Professor Tony Makin’s Minerals Council of Australia Monograph – ‘Australia’s Competitiveness: Reversing the Slide’The Effectiveness of Federal Fiscal Policy: A ReviewTony Makin’s Agenda paper on fiscal stimulus during the GFCIS-LMentary by Paul KrugmanAustralian examples of Depression-era public works projects:Lamington National Park's historyMt Spec Road and Little Crystal Creek Bridge

Why is there a gender pay gap - i.e. why do women earn less than men on average? To what extent is it due to working in different types of jobs, levels of experience or education, or discrimination and biases? Economics Explained host Gene Tunny discusses the evidence with his colleague Benjamin Scott, Research Officer at Adept Economics. Resources mentioned in the discussion include:Blau and Kahn JEL article on the gender wage gapRoss Guest on the Real Gender Pay GapKPMG She's Price(d)less reportLeonora Risse on the gender pay gap interviewAndrew Leigh's video Underpaid & Over ItAustralian Government Workplace Gender Equality Agency on the gender pay gap

Economics Explained host Gene Tunny speaks about one of his favourite books, Stephen Covey's 7 Habits of Highly Effective People, with Tim Hughes, a Brisbane-based businessman (Urban Ergo). Gene speaks about how he sees the lessons applying to economists. A 30th anniversary edition of the 7 Habits was published this year.Links related to the discussion include:Art of Manliness episode on 30th anniversary of the 7 HabitsPaul Frijters on coronavirusWho pays Trump's tariffs, China or U.S. customers and companies?Ralph Turvey on how to estimate marginal costsBrian Tracy's Eat that FrogThe 7 habits of highly effective economists – Part 1: Habits 1 to 3 for private victoryThe 7 habits of highly effective economists Part 2 – Habits 4 to 7: Public victory & renewal habits