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#ESSADebate: President Xi and the Abolition of Term Limits

Import 2022-12-14 05:06

#ESSADebate: President Xi and the Abolition of Term Limits

[two_fifth] Negative Sherry Te China, as a superpower country, is always trying to advance politically and economically, even if it means radicalizing its government once again. Last March, 3,000 delegates of the National People’s Congress of China voted to abolish the two-term presidential limit. The big question:

(Mis)Behaviour: Economics and the academy’s great image problem

Import 2022-12-14 05:06

(Mis)Behaviour: Economics and the academy’s great image problem

Benoit Mandelbrot, the father of fractals and a true pioneer of the infiltration of mathematics into economics likens financial economics as an academic discipline to “chemistry in the sixteenth century: a messy compendium of proven know-how, misty folk wisdom, unexamined assumptions, and grandiose speculation”. If the discipline is such, then

The value of tertiary education

The value of tertiary education

The recent Australian budget proposal to deregulate university fees, and possibly raise them, has ignited debate about whether tertiary education is still valuable. With unemployment increasing, is it still feasible to incur large debts just to get a university education? This article will argue that there is still great value

Debunking the paradox of thrift

Austrian economics

Debunking the paradox of thrift

John Maynard Keynes, during his work in the 1930s, popularised a concept taught in many macroeconomics classes known as the paradox of thrift, where he outlined the harsh consequences when individuals choose to save a greater proportion of their income in a recession. The logic employed by Keynes here is

Should Americans be worrying about tax inversions?

Should Americans be worrying about tax inversions?

The recent news of Burger King’s takeover of one of Canada’s largest coffee makers, Tim Horton, has sparked the interest of many mainly because of an underlying reason behind this acquisition – tax inversions. Tax inversions refer to the process where companies move their operations overseas in order to

The Economics of Uber

The Economics of Uber

Uber is a mobile application which connects passengers to willing, private drivers who pick them up and drive them where they need to go, much like a taxi service. Uber itself earns revenue by taking a 20% cut of fare cost. Currently, Uber is making headlines for various legal issues

What is Austrian economics?

Austrian economics

What is Austrian economics?

The origin of Austrian Economics dates back to 1871 through Carl Menger’s Principles of Economics. Since its first appearance the Austrian School of Economics fell out of popularity for much of the 20th century. Over the last 50 years however there has been a great resurgences in the laissez-faire

Shadow labour

In 1981 Austrian philosopher, Ivan Ilich coined the term ‘shadow labour’ which he defined as work that we aren’t monetarily compensated for. Craig Lambert in his piece in the New York Times, describes seeing a wealthy partner of a law firm at the supermarket self-service checkout, scanning her bar

Should we fear deflation?

Should we fear deflation?

As consumers the prospect of lower prices are always enticing as it means we suddenly have greater purchasing power over goods and services. However, as economists we often espouse the view that deflation, which is the decrease in the general price level of goods and services, is bad and that

Are education vouchers truly a free-market solution?

Are education vouchers truly a free-market solution?

During the 1950s, the Nobel prize-winning Chicago economist Milton Friedman popularised the concept of an education voucher, arguing that it isn’t a “public purpose to build brick schools … it is public purpose to provide education”. So what is this education voucher praised by Friedman? The voucher system refers to

The minimum wage debate

bipartisan policy

The minimum wage debate

The minimum wage is one of the most controversial topics in economics, so it comes as no surprise that debate regarding this topic has once again ignited in America after President Obama recently called for hikes in America’s minimum wage. While the intent of this action is to assist

Farewell ESSA

Dear ESSA members, It has been an absolute privilege to have been your President over the past year. I am humbled by all your kind words at ESSA events, in the corridors of the Spot building, tutorials and lectures! I could not have hoped for a warmer welcome on campus

Irrational Strategies: Dealing with an Altruistic Prisoner

homo economicus

Irrational Strategies: Dealing with an Altruistic Prisoner

So you are presented with the following prisoner’s dilemma game. What is your choice? Most economics freshmen will have learnt that when presented with the choices of cooperation or finking, finking is the dominant strategy, and an all-fink nightmare is the only pure strategy Nash equilibrium. Against homo economicus,

Wealth, Happiness, Heartening Banalities

Wealth, Happiness, Heartening Banalities

It’s once again approaching the end of the academic year and to offset the inevitable onset of melancholy associated with plugging away at too many practice exams I thought it’d be a good idea to try and finish on a note of relative cheerfulness. The relationship between a

The Time Inconsistency of Dietary Policy

adaptive expectations

The Time Inconsistency of Dietary Policy

While dieting and health are issues that have long been dominated by nutritionists, physiotherapists and personal trainers, I thought it was high time that the field of economics took a crack at it. Essentially, I believe that the logic behind a healthy lifestyle is not too dissimilar from that of

Planned Obsolescence: Buying into Consumerism

anti-consumerist

Planned Obsolescence: Buying into Consumerism

Consumerism is the tendency to gratify oneself and consume in ever increasing amounts. To that end, planned obsolescence acts as the lynchpin for consumerist behaviour in durable goods, enabling frequent repurchasing and replacement of goods that would otherwise have lasted for much longer. Removed from each individual’s purchasing decision

Planned Obsolescence: Competition Against Longevity

Planned Obsolescence: Competition Against Longevity

Last time, I shared with you the story of Phoebus – a 20th century cartel that sought to fix light bulb prices as well as harm product innovation with reduced longevity. Doing so would mean strong demand for replacement products, and fortified sales volumes. Since those early days though, some economic

How To Be A Millionaire! (Three out of four times)

How To Be A Millionaire! (Three out of four times)

Can statistical inference beat the system? The room is dark. A spotlight shines down on you. This is it, the million-dollar question. You have no idea what the answer is so as always, when in doubt, you’ve guessed ‘C’. You use your 50-50 lifeline. It’s not very effective.

Our Future as Economists

clarke and dawe

Our Future as Economists

Last year I saw this Clarke and Dawe video about Quantitative easing. Now, in my last year of economics I find it funnier than ever. As future economists we are destined to always offer a multitude of complex answers for the smallest of questions. This is our fate.

How to eat an Apple

How to eat an Apple

The technology sector- what’s a firm to do? Hot off the heels of the recent Apple vs. Samsung trial in the U.S. there has been heated discussion over what implications this ruling will have on the future of technology companies. While Apple walked away from the trial with

Why Being Irrational Saves Lives

Why Being Irrational Saves Lives

Let’s get back to basics- the study of game theory is, for all intents and purposes, the study of strategy. It reveals to us what is, and how to, execute the best possible plan given a particular scenario. This field of study applies to a ubiquitous range of situations-

Koo’s Keynesian Key to the Balance Sheet Recession

balance sheet recession

Koo’s Keynesian Key to the Balance Sheet Recession

I had the privileged opportunity to attend the David Finch lecture at the University of Melbourne two weeks ago. Amidst many academics and esteemed guests, Mr. Richard Koo from Nomura Research Institute presented his lecture about Japan’s burst asset bubble, and its lessons which are now applicable to many

Economic Economics – A Game of Theories Part II

bruce bueno de mesquita

Economic Economics – A Game of Theories Part II

As university students, the problem of buying a new car may present itself in the near future. The misalignment of incentives between you the buyer and the commission-driven car salesman is always there, hiding insidiously behind the salesman’s phony smile. In fighting this imbalance, economics, more specifically, game theory

The Profitable Orientation

The Profitable Orientation

“It is no longer economically viable to continue manufacturing here.” These are words which we have become increasingly desensitized to, and now expect from large companies in many industries. Resentment towards the faceless foreign factory workers who stole our jobs has largely died down, and has been replaced by arguments

Avada CADIVI

In many countries internet shopping is a growing business. Sites such as Ebay and Amazon are thriving as people are becoming more aware of the benefits of buying online: you don’t have to physically go to a shop where a salesperson will watch over you like a vulture, waiting