Hong Kong’s Remarkable Fiscal Policy

International Liberty

I’ve had ample reason to praise Hong Kong’s economic policy.

Most recently, it was ranked (once again) as the world’s freest economy.

And I’ve shown that this makes a difference by comparing Hong Kong’s economic performance to the comparatively lackluster (or weak) performance of economies in the United States, Argentina, and France.

But perhaps the most encouraging thing about Hong Kong is that the nation’s top officials genuinely seem to understand the importance of small government.

Here are some excerpts from a recent speech delivered by Hong Kong’s Financial Secretary. He brags about small government and low tax rates!

Hong Kong has a simple tax system built on low tax rates. Our maximum salaries tax rate is 15 per cent and the profits tax rate a flat 16.5 per cent. Few companies and individuals would find it worth the risk to evade taxes at this low…

View original post 603 more words

Pielke on Climate #2

Climate change debate is way more complicated than some people in the media think and try to make us believe…

The Climate Fix

2015-11-19-1447968585-1661590-6672156239_89c77d53d8_oWelcome to the second edition of my occasional newsletter on climate and energy issues. As a reminder, my day-to-day research or writing is focused on sports governance and science policy. But I’ve written a fair bit on the topics of climate and energy over the past 25 years, including two books and a boatload of academic papers, and I’m paying attention. So caveat lector!

A few things to say up front:

  • If you don’t like what I write or don’t like me, then don’t read it – no big deal, just a professor with a blog.
  • If you appreciate the perspective, consider the tip jar to your right. And thanks to those of you who visited it last month – much appreciated!
  • If you’d like to engage, consider a comment, a Tweet or an email. I am happy to discuss or debate.
  • If you choose to call me names or lie about…

View original post 940 more words

The Continuing Revenge of the Laffer Curve

International Liberty

Seven years ago, I wrote about the “Butterfield Effect,” which is a term used to mock clueless journalists.

A former reporter for the New York Times, Fox Butterfield, became a bit of a laughingstock in the 1990s for publishing a series of articles addressing the supposed quandary of how crime rates could be falling during periods when prison populations were expanding. A number of critics sarcastically explained that crimes rates were falling because bad guys were behind bars and invented the term “Butterfield Effect” to describe the failure of leftists to put 2 + 2 together.

Journalists are especially susceptible to silly statements when writing about the real-world impact of tax policy.

They don’t realize (or prefer not to acknowledge) that changes in tax rates alter incentives to engage in productive behavior, and this leads to changes in taxable income. Which leads to changes in tax revenue, a…

View original post 589 more words

On popular health utilization metrics

Another excellent post by Random Critical Analysis on healthcare metrics and the need for a better debate when analyzing our healthcare system:

Random Critical Analysis

This Commonwealth Fund report has been widely cited for explaining why US health expenditures are so high.

The analysis finds that the U.S. spends more than all other countries on health care, but this higher spending cannot be attributed to higher income, an aging population,
or greater supply or utilization of hospitals and doctors. Instead, it is more likely that higher spending is largely due to higher prices and perhaps more readily
accessible technology and greater obesity.

Since I have already spoken to the incomes argument at some length and explained why I find overall “high prices” to be unpersuasive as it pertains to NHE in general and the US specifically, I will instead focus narrowly on this utilization argument since there are a number of similar analyses with identical/similar indicators.

The report proffers this table as an explanation for why high utilization cannot explain high US health expenditures.

screenshot_1749.png

Similar analyses are…

View original post 1,786 more words

High US health care spending is quite well explained by its high material standard of living

This is an amazing analysis on healthcare costs versus consumption of goods in the US and Europe. It shows that lots of the claims about the need for a single payer because the US is a complete outlier do not hold with good data, and that we might have less hanging fruits to attack if the goal is truly reducing healthcare expenditure in the US.

Lastly, one important point: since the major driver of healthcare expenditure in the US is volume, attacking things that lead to over utilization of the system might be proven wise (such as third party payment schemes, lack of price consciousness and price transparency, and tax exclusions).

Random Critical Analysis

About two years ago I created a long blog post arguing that the United States is not an outlier in healthcare expenditures per capita.   Following renewed interest from a link from Marginal Revolution recently and some criticism from a few people on various comment threads, I thought I’d take the time to update the evidence, address some areas of criticism, and muster yet more lines of evidence to support my argument.   This post should largely make the earlier post obsolete, but I will keep the earlier post up for posterity and to retain data/information that won’t necessarily be perfectly duplicated in this post.

There exist several popular plots like these that people use to make the argument that the United States spends vastly more than it should for its level of wealth.

above-expected-500x406-1

 

health-care-spending-in-the-united-states-selected-oecd-countries_chart02

 

These plots and the arguments that usually go with them give the strong impression that US spends about…

View original post 6,655 more words