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BSB113 Economics Semester 2 2020
Assessment 2: Research essay
Submission date
Tuesday 22nd September
Research essay requirements
• This assessment has a MAXIMUM WORD limit of 1400 words (excluding your reference list – but inclusive
of in-text citations).
• The essay is to be submitted through SafeAssign via the BSB113 blackboard website (see BB
assessment 2 folder for detail). You are advised to keep a copy of your work for your own records.
• The assessment should be submitted as a WORD document or PDF. Please note that other file formats
may not be able to be opened and will be assumed to be a non-submission.
• It is your responsibility to check that the document has uploaded to SafeAssign and that it is the co
ect
document. If you need help on how to check contact IT support (do not contact your tutor or UC).
• Work that has been submitted for assessment in BSB113 in previous semesters cannot be resubmitted
for assessment. If identified, re-submitted work from previous semesters will be treated as plagiarism.
• QUT exercises zero tolerance on late submissions without an approved extension.
• If special circumstances prevent you from meeting the assessment due date, you can apply for an
extension. If you do not have an approved extension prior to the submission date, you should submit the
work you have completed by the due date and it will be marked against the assessment criteria.
• You will NOT be able to view your plagiarism report. Refer to the FAQs in the supporting assessment
document (BB assessment 2 folder) as to why.
• We strongly recommend that prior to submission you ensure that you have read ALL the related
assessment documents.
• Your essay will be marked against the published CRA for this assessment (provided at the end of the
Assessment Documentation).
• You are strongly recommended to keep a portfolio of your reading, notes made and all essay drafts. This
will help you establish the originality of your work, should you need to.
https:
www.student.qut.edu.au/studying/assessment/late-assignments-and-extensions
https:
www.student.qut.edu.au/studying/assessment/late-assignments-and-extensions
2
Scope of research essay
Contact tracing apps were presented to the public as an important tool in fighting the spread of COVID19
(University of Oxford, XXXXXXXXXXIn Australia, the COVIDSafe app (Department of Health, 2020) was launched by
the Australian Federal Government and Chief Medical Officer (Prime Minister of Australia, XXXXXXXXXXThe public
were encouraged to download and use the app. However, the target of 40% download target was not achieved
(Meixner, 2020).
A search of the media and academic literature presents many theories/hypothesises as to why this is the case.
These range from a lack of understanding of the data that was being collected, how collected data was to be
stored, data protection issues, concerns about privacy
eaches, along with more day to day pragmatic issues
including concerns that the app would drain phone batteries quickly and to up-take (or not) reflecting political
allegiances. For example, see Lee et al XXXXXXXXXXand Thomas et al. (2020).
In the absence of a vaccine, given the economic impact of border controls and lock downs, the cu
ent Chief
Health Minister for Queensland is interested in understanding if the COVIDSafe app (or equivalent) could be
successfully resu
ected as part of a range of tools for managing [controlling/mitigating/supressing] community
transmission.
From an economics perspective it is no surprise that the app failed to achieve its targets. The purpose of this
esearch essay is to explore the economics behind the uptake of the COVIDSafe app and potential policy
solutions (Hawkins and Freyens (2020), Holden XXXXXXXXXXand Volk, (2020)).
The cu
ent Chief Health Minister for Queensland has asked you to summarise the economics perceptive in
an essay format which includes the following:
1. An overview of the rationale behind the COVIDSafe app and data on its uptake. (International comparisons
are encouraged).
2. Presentation of (inclusive of a supporting explanation) an economic model that identifies the optimal
uptake of the COVIDSafe app and the actual (suboptimal) uptake of the COVIDSafe app.
3. Investigation of the following TWO economic policies and a critical analysis of how they could potentially
increase up take of the relaunch of COVIDSafe app (or equivalent):
a. Monetary incentive
. Behavioural economics approach (non-monetary incentive)
You are required to support your economic analysis with appropriate data and economic models (partial
equili
ium analysis) which you use to examine how the policy achieves the desired outcome. A
ief summary
of the potential economic effects (costs and benefits) of each of the above policies is required. However, it is
appreciated that a full analysis of effects of these policy solutions is beyond the scope of this work.
Recommended reading
The readings presented below are not an exhaustive list of references. You are encouraged to also search for
appropriate sources to support your critical analysis (refer to the CRA).
Department of Health (2020, Aug 16). COVIDSafe app. Retrieved https:
www.health.gov.au
esources/apps-
and-tools/covidsafe-app
Hawkins, J. and Freyens, B. (2020, April 30). Contact tracing apps: a behavioural economist’s guide to
improving uptake. Retrieved from https:
theconversation.com/contact-tracing-apps-a-behavioural-
economists-guide-to-improving-uptake-137157
Holden, R. (2020, April 24). Vital Signs: Modelling tells us the coronavirus app will need a big take-up,
economics tells us how to get it. https:
theconversation.com/vital-signs-modelling-tells-us-the-
coronavirus-app-will-need-a-big-take-up-economics-tells-us-how-to-get-it-136944
https:
theconversation.com/profiles
ichard-holden-118107
https:
theconversation.com/profiles/stefan-volk-883484
https:
www.health.gov.au
esources/apps-and-tools/covidsafe-app
https:
www.health.gov.au
esources/apps-and-tools/covidsafe-app
https:
theconversation.com/contact-tracing-apps-a-behavioural-economists-guide-to-improving-uptake-137157
https:
theconversation.com/contact-tracing-apps-a-behavioural-economists-guide-to-improving-uptake-137157
https:
theconversation.com/profiles
ichard-holden-118107
https:
theconversation.com/vital-signs-modelling-tells-us-the-coronavirus-app-will-need-a-big-take-up-economics-tells-us-how-to-get-it-136944
https:
theconversation.com/vital-signs-modelling-tells-us-the-coronavirus-app-will-need-a-big-take-up-economics-tells-us-how-to-get-it-136944
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Lee, J. Sneddon, J. and Ge
ans, P. (2020, May 27) COVID-19: COVIDSafe downloads may be more about
understanding people than about the design of processes. Retrieved
https:
www.news.uwa.edu.au/ XXXXXXXXXX/covid-19-coronavirus/covid-19-covidsafe-downloads-may-
e-more-about-understanding-peop?page=show
Meixner, S. (2020, June 2). How many people have downloaded the COVIDSafe app and how central has it
een to Australia's coronavirus response? ABC News. Retrieved from https:
www.abc.net.au/news/2020-
06-02/coronavirus-covid19-covidsafe-app-how-many-downloads-greg-hunt/ XXXXXXXXXX
Prime Minister of Australia (2020, April 26). COVIDSafe: New app to slow the spread of coronavirus.
Retrieved https:
www.pm.gov.au/media/covidsafe-new-app-slow-spread-coronavirus
Thomas, R., Michaleff, Z., Greenwood, H., Abukmail, E., & Glasziou, P XXXXXXXXXXMore than privacy: Australians'
concerns and misconceptions about the COVIDSafe App. medRxiv, XXXXXXXXXX XXXXXXXXXX.
https:
doi.org/10.1101/ XXXXXXXXXX
Volk, S. (2020, April 23). Coronavirus contact-tracing apps: most of us won’t cooperate unless everyone
does. https:
theconversation.com/coronavirus-contact-tracing-apps-most-of-us-wont-cooperate-unless-
everyone-does-135959
University of Oxford (2020, April 16th). Digital contact tracing can slow or even stop coronavirus transmission
and ease us out of lockdown. Retrieved https:
www.research.ox.ac.uk/Article/ XXXXXXXXXXdigital-contact-
tracing-can-slow-or-even-stop-coronavirus-transmission-and-ease-us-out-of-lockdown
https:
www.news.uwa.edu.au/ XXXXXXXXXX/covid-19-coronavirus/covid-19-covidsafe-downloads-may-be-more-about-understanding-peop?page=show
https:
www.news.uwa.edu.au/ XXXXXXXXXX/covid-19-coronavirus/covid-19-covidsafe-downloads-may-be-more-about-understanding-peop?page=show
https:
www.abc.net.au/news/ XXXXXXXXXX/coronavirus-covid19-covidsafe-app-how-many-downloads-greg-hunt/ XXXXXXXXXX
https:
www.abc.net.au/news/ XXXXXXXXXX/coronavirus-covid19-covidsafe-app-how-many-downloads-greg-hunt/ XXXXXXXXXX
https:
www.pm.gov.au/media/covidsafe-new-app-slow-spread-coronavirus
https:
doi.org/10.1101/ XXXXXXXXXX
https:
theconversation.com/profiles/stefan-volk-883484
https:
theconversation.com/coronavirus-contact-tracing-apps-most-of-us-wont-cooperate-unless-everyone-does-135959
https:
theconversation.com/coronavirus-contact-tracing-apps-most-of-us-wont-cooperate-unless-everyone-does-135959
https:
www.research.ox.ac.uk/Article/ XXXXXXXXXXdigital-contact-tracing-can-slow-or-even-stop-coronavirus-transmission-and-ease-us-out-of-lockdown
https:
www.research.ox.ac.uk/Article/ XXXXXXXXXXdigital-contact-tracing-can-slow-or-even-stop-coronavirus-transmission-and-ease-us-out-of-lockdown
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General guidance notes
You are required to present your response to the cu
ent Chief Health Minister for Queensland in an essay
format.
It is recommended that you approach the problem as follows:
The context (Task 1 relates to CRA 1)
In economics we generally start by framing the problem. We also refer to this as setting the context. In this
part of your essay (Task 1), you need to articulate what the issue is. This is not simply a case of stating “I think
it is a problem because …”. You need to present an informed context which is supported by peer reviewed
published research (not the Courier Mail). In setting the context, you should also include details of the social
costs associated with the problem (in dollar values). Data should be from reputable sources. The case that
you make in this section provides the basis for economic policy solutions you will present in part 3.
Economic theory (Task 2 relates to CRA 2)
You will need to present the co
ect theoretical economic model and explain it using appropriate economic
terminology (Task 2). It is no secret that this is about the theory of externalities. You will need to present a
obust diagrammatic exposition of the co
ect economic theory of externalities, identifying the theoretical
market and efficient equili
ium and deadweight loss aligned to the problem you have identified in part 1.
The critical analysis (Task 3 relates to CRA 3)
In Task 3, potential policy solutions are critically analysed from an economic perspective. Your analysis should
e framed with reference to the economic theory presented in Task 2. You have been presented with two
policy options and need to examine both of these. The objective of the policy is to improve the outcome. The
trick, for you and what you are being assessed on is how. You need to work out how each policy you are
considering shifts from the cu
ent equili
ium to a new equili
ium (in normal - speak improves up take of the
app).
The key to this part of the essay is to keep it simple. Give an overview of each policy, detail how it will work to
address the issue under consideration (yes this does mean potentially more diagrams) and give a
ief
summary of the potential strengths and limitations of that policy approach based on what you find from the
esearch literature. In a policy context, the benefits should be greater than the costs (note this refers to
economic cost not financial costs). Note, you are not required to say that one policy is better than another.
A key feature of economic analysis is that it is objective. Whilst this work has been commissioned by a
particular stakeholder, it should be an unbiased and informed critical economic analysis and not a political
document. No particular policy solution should be given a greater or lesser weight because you think this may
have more sway with the audience you are writing for.
In summary:
• clearly frame the “problem” by setting the context
• use an appropriate economic theory to show how economists view this problem
• write an unbiased and informed critical economic analysis and not a political document. Do not get drawn
into reporting emotive arguments (interesting as they are).
• be academically rigorous, ensuring that your analysis is underpinned by references to peer reviewed
academic literature
Your audience’s background knowledge in economics
Assume that your audience has an understanding of economic theory and terminology, up to the level of
BSB113. Assume that they are regularly exposed to documents drafted by economists