Real world economics

Critiques of orthodox economics have proliferated in recent times, but often these critiques are not translated into alternative principles for policy-making. The Centre for Policy Development’s ‘Real World Economics’ program provides a platform for our fellows and others to explore approaches which move beyond the ‘small government vs big government’ debate and provide the basis for consistent policy-making across portfolios.

Much of the thinking that informs government policy is based on outdated or oversimplified economic theory — recent applied research (for example in behavioural economics) is often not taken into account. We need to incorporate a broader, more balanced understanding of human nature into the economic principles that underpin policy development.

Reforming Australia’s hidden welfare state: Tax expenditures as welfare for the rich | OCCASIONAL PAPER

One of Australia’s least fair and least effective forms of public investment is still growing like topsy. In this paper for the Centre for Policy Development Dr Ben Spies-Butcher and Adam Stebbing uncover Australia’s hiddenmore

You can see a lot by just looking: Understanding human judgement in financial decision-making | OCCASIONAL PAPER

In this paper CPD fellow Ian McAuley outlines the main implications of behavioural economics for financial decision-making, breaking down the myth that market participants are always rational decision-makers who act to maximise their own bestmore