Home' Policy Magazine : Policy Vol 32 - No 4 Contents 28 POLICY • Vol. 32 No. 4 • Summer 2016--2017
THE LOOMING CRISIS IN BUSINESS INVESTMENT
13 ABS, Balance of Payments and International Investment
Position, Cat No 5302, June 2016.
14 As shown by strong price growth. ABS, Residential Property
Price Indexes: Eight Capital Cities, Cat No 6416, June
2016; and CoreLogic Home Value Index, available from:
15 See also Kevin Lane and Tom Rosewall, Firms' Investment
Decisions and Interest Rates, Reserve Bank Bulletin, June
Quarter 2015 (Sydney: Reserve Bank, 2015).
16 Philip Lowe, In ation and Monetary Policy, Address to
Citi's 8th Annual Australian and New Zealand Investment
Conference (Sydney: 18 October 2016).
17 Antonio Ruiz Porras and Celina López-Mateo, 'Market
Concentration Measures and Investment Decisions in
Mexican Manufacturing Firms', Accounting & Taxation
2:1 (2010), 59-69. is study nds that competition-
enhancing regulatory changes promote investment:
Alberto Alesina, Silvia Ardagna, Guiseppe Nicoletti and
Fabio Schiantarelli, 'Regulation and investment', Journal
of the European Economic Association 3:4 (2005), 791--825.
See also Jerome Mathis and Wilfried Sand-Zantman,
'Competition and Investment: What Do We know from
the Literature?', Rapport IDEI 31 (2014).
18 IMF, World Economic Outlook, October 2016, and OECD,
Economic Outlook and Interim Economic Outlook, available
19 Reserve Bank of Australia, Statement of Monetary Policy
(August 2016), 3.
20 Lowe, In ation and Monetary Policy.
21 IMF, World Economic Outlook, October 2016, and OECD
22 Lawrence Summers, ' e Age of Secular Stagnation: What
It Is and What to Do About It', Foreign A airs, March/April
23 Lowe, In ation and Monetary Policy.
24 World Economic Forum, Global Competitiveness Report
2015-2016 (30 September 2015).
25 IMD World Competitiveness Center, World
Competitiveness Yearbooks, report for Australia, available
26 Available from http://www.heritage.org/index/
27 James Gwartney, Robert Lawson, and Joshua Hall, Economic
Freedom of the World: 2016 Annual Report (Canada: Fraser
28 Michael Potter, Fix It Or Fail: Why We Must Cut Company
Tax Now, CIS Research Report 20 (Sydney: e Centre
for Independent Studies, October 2016).
29 As above, 5.
30 Céline Azémar, Rodolphe Desbordes and Ian Wooton,
'Country Size and Corporate Tax Rate: Rationale and
Empirics', CEPR Discussion Papers 10800 (2015); and
Davide Furceri and Georgios Karras, 'Tax Design in the
OECD: A Test of the Hines-Summers Hypothesis', Eastern
Economic Journal, 37:2 (2011), 239-247. See also page 8 of
Christopher Heady, Directions in Overseas Tax Policy, Paper
presented to Melbourne Institute's Australia's Future Tax
and Transfer Policy Conference (2010).
31 Source: OECD Revenue Statistics. Figures are for 2016.
32 Potter, Fix It Or Fail, 8.
33 As above, 9.
34 For National Income and Productivity, source: ABS,
Australian National Accounts: National Income,
Expenditure and Product, June 2016, Cat No 5206. For
Wages, source : ABS, Wage Price Index, Australia, June
2016, Cat No 6345.
35 ese measures combined have an estimated long-run
impact almost exactly equal to the long-run cost of the
company tax cut, as shown in Potter, Fix It Or Fail, 19 (see
36 David Uren, 'Company Tax Cuts "Make Bracket Creep
Inevitable"', e Australian (20 September 2016).
37 Michael Potter, 'Don't Increase the Super Guarantee', Policy
32:3 (Spring 2016), pp. 27-36.
38 e Senate, Economics Legislation Committee, Treasury
Laws Amendment (Enterprise Tax Plan) Bill 2016 (Provisions)
--Report (Commonwealth of Australia, October 2016).
39 Michael Vertigan, Alison Deans, Henry Ergas and Tony
Shaw, Independent Cost‐Bene t Analysis of Broadband and
Review of Regulation, volume 2 (2014), 10. Costs are relative
to the unsubsidised rollout of broadband.
40 Leo Dobes and Joanne Leung, 'Wider Economic Impacts
in Transport Infrastructure Cost-Bene t Analysis--A Bridge
Too Far?', Agenda 22:1 (2015).
41 ACT Auditor-General, Initiation of the Light Rail Project,
Report No 5/2016 (Canberra: 2016).
42 Marion Terrill and Lucille Danks, Cost Overruns in
Transport Infrastructure, Report 2016-13 (Grattan Institute,
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