Explaining negative gearing through game theory





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Published on Aug 24, 2016

Negative gearing was one of the federal election campaign’s fiercest battlegrounds.

While the Opposition claimed that the major beneficiaries of the tax policy were almost all in the very highest earnings bracket, the Coalition attacked any proposed changes, saying they would “smash” house prices and unfairly punish “mum and dad investors”.

The fact is, negative gearing can have surprising outcomes.

Using game theory, senior lecturer in mathematics, Dr Stephen Woodcock constructed four scenarios that demonstrate exactly who benefits from negative gearing.

At The Conversation, we decided to create a board game to show his modelling:

Featuring music from:

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Free Music Archive - “Tech Strings” by Dave Depper

And a short clip from:

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