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Understanding New Resource Projects
Author(s) -
Clements Kenneth W.,
Si Jiawei,
Simpson Thomas
Publication year - 2016
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/roiw.12172
Subject(s) - resource (disambiguation) , investment (military) , inflation (cosmology) , economics , independence (probability theory) , private sector , business , economic growth , computer science , political science , politics , computer network , statistics , law , physics , mathematics , theoretical physics
The surge in new resource projects has been a prominent feature of the recent strong performance of the Australian economy, with mining and energy investment accounting for almost one‐half of all private investment. Although the current round of resource investment has now peaked, as swings in the resource sector tend to repeat themselves, there is an ongoing need to carefully understand the available information sources. We use a specially developed panel of matched projects from three widely followed, but under‐researched, sources to analyze cost inflation, the biases, the degree of independence, and timeliness of each source. This information is of use to policy makers who have to closely monitor these developments, analysts following the resources sector, and project proponents wanting to know something about the typical cost profile of a project.