Gary Banks, AO

Professor Gary Banks

Gary Banks is Dean of the Australia and New Zealand School of Government. He was Chairman of the Productivity Commission from 1998-2012, where he personally headed a variety of public inquiries on major microeconomic reform issues. He also had responsibility for the Office of Regulation Review and, in 2006, led the Prime Minister’s Regulation Taskforce. He has worked as an economic consultant and for international organisations and currently chairs the OECD’s Regulatory Policy Committee. He is also a director of Macquarie Bank and a member of the Prime Minister’s Business Advisory Council. Gary Banks is a Professorial Fellow at Melbourne University and Adjunct Professor at ANU. He is a Fellow of the Academy of Social Sciences Australia and National Fellow of the IPAA, for whom he delivered the 2013 Garran Oration. His contributions to public policy have been recognised in the Economic Society’s inaugural Distinguished Public Policy Fellow Award (2014) and the Order of Australia (2007).

Subject Area Expertise

Trade and assistance policy, regulation, productivity, public choice, public governance.

Website

http://www.anzsog.edu.au

Responses (5)

Social costs of gambling - December 2016

Poll 14

"The social costs of gambling exceed the benefits (including consumer surplus from recreational gambling and tax revenue for governments)."

Strongly disagree

The best answer is in the Productivity Commission's 2010 report, on which I presided as Chairman. While estimates of the social costs are large, ranging at that time up to $8.4 billion, the social benefits are estimated to be even larger, ranging up to $15.8 billion -- with a minimum of around $12 billion (nearly 50 per cent above the maximum cost estimate). Of course that does not mean there is no role for policy. The Commission found that the social costs could be greatly reduced, with only a relatively small consequent reduction in social benefits, by adopting certain measures related to poker machine design and pre-commitment technology (the latter an instance of behavioural economics at work). Net benefits would according rise greatly. But of course reducing social costs means reducing losses by 'problem gamblers', who account not only for a large share of industry profits, but also a sizeable proportion of own-state government revenue. So the most effective policy instruments have been ignored or dismissed in favour of such trivial alternatives as making clocks visible, and ATMs less so.

Part 1: 'Behavioural economics provides new and useful insights into individual behaviour.' Part 2: 'It is unethical for governments to use behavioural economics to

The total benefit of current levels* of migration to Australia will outweigh the total costs to Australia's economy.

Agree

It may be more accurate to say that it harnesses existing insights (particularly from experimental psychology) to explain individuals' economic behaviour.

Behavioural economics - September 2016

Poll 11

Part 1: 'Behavioural economics provides new and useful insights into individual behaviour.'

Part 2: 'It is unethical for governments to use behavioural economics to "nudge" citizens.'

PART 1 - Disagree

Compared to government not acting? Or compared to using other instruments in pursuit of a policy objective? If the latter, nudging may be no worse ethically than commanding or bribing, for example, and may well be better.

PART 2 - Disagree

Penalty Rates Reform - November 2015

Poll 2

"Aligning Sunday penalty rates for hospitality, entertainment and retailing industries with the current levels for Saturday, as proposed in the Productivity Commission's draft report, will lead to more employment and greater availability of services in these industries on Sundays."

Strongly agree

And why stop there? Penalty rates penalise organisations that need to work seven days and workers for whom weekend work is preferred -- including within the participation priorities of women and youth. Penalty rates as currently structured are the vestige of a bygone era. The only policy question is how best to effect the transition to modernity.