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Bad Politics Makes Bad Policy: The Case of Queensland's Asset Sales Programme

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  • John Quiggin

Abstract

On 2 June 2009, the Queensland Government announced a programme of asset sales projected to realise $15 billion. In this article, the public case for privatisation put forward by the Queensland Government is shown to be wrong and, in important respects, deliberately misleading. It is argued that the presentation of a spurious case for privatisation has contributed to poor policy decisions regarding the choice of assets to be sold, the failure to restructure the rail industry to promote competition, and the adoption of inferior methods for sale. Copyright (c) 2010 The Economic Society of Australia.

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Article provided by The Economic Society of Australia in its journal Economic Papers: A journal of applied economics and policy.

Volume (Year): 29 (2010)
Issue (Month): 1 (03)
Pages: 13-22

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Handle: RePEc:bla:econpa:v:29:y:2010:i:1:p:13-22

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  1. Simon Grant & John Quiggin, 2006. "The Risk Premium For Equity: Implications For Resource Allocation, Welfare And Policy ," Australian Economic Papers, Wiley Blackwell, vol. 45(3), pages 253-268, 09.
  2. Stephen King & Rohan Pitchford, 1998. "Privatisation in Australia: Understanding the Incentives in Public and Private Firms," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 31(4), pages 313-328.
  3. R. Mehra & E. Prescott, 2010. "The equity premium: a puzzle," Levine's Working Paper Archive 1401, David K. Levine.
  4. Simon Grant & John Quiggin, 2003. "Public Investment and the Risk Premium for Equity," Economica, London School of Economics and Political Science, vol. 70(277), pages 1-18, February.
  5. John Quiggin, 1995. "Does Privatisation Pay?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(2), pages 23-42.
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