Juneau, Alaska

(907) 699-6788 ed.king@kingecon.com

Blog Posts

Don’t Listen to Sound-Bites, Oil Production is Up

If a bat and a ball cost $1.10 together, and the bat costs $1 more than the ball, how much does a ball cost? This is a classic riddle. I’m assuming you’ve seen it before. If you’re like most people, your mind quickly came up with $0.10 for the ball. […]

The Legislature Should Not Rely on DOR’s Oil Price Forecast

Each October, the Alaska Department of Revenue (DOR) holds an oil price forecasting session. They gather about 30 people in a room in Anchorage, talk to them about what’s going on in the oil markets, and eventually ask them to write down what they think is going to happen to […]

Can Electric Vehicles Takeover the Transportation Market?

Electric vehicles (EVs) have been slowly gaining traction over the last few years. Some people believe EVs will replace gasoline powered vehicles; others believe they are a fad that will remain marginal players in the transportation system. I am an economist, so I believe that people will follow the money. […]

Alaska’s Recession May Be Over, Signs of Growth

The typical definition of a recession is two or more consecutive quarters in which the gross domestic product (GDP) of the economy declines. By that definition, Alaska’s most recent recession started in June 2014, although the significant decline didn’t occur until 6 months later. Alaska posted GDP losses in 6 […]

The Permanent Fund Protection Act – Facts and Fiction

The Alaska State Legislature recently passed SB 26, also known as the “Permanent Fund Protection Act”. The Governor is sure to sign the bill into law, seeing as he introduced it. So, what exactly does this bill do and why was it necessary? Let’s explore some of the claims. The […]

Follow-up: HB 331 is Still a Good Deal

After we published an article about HB 331 last week, the “Alaskans for a Sustainable Budget” posted a retort questioning our conclusions. First, I have to say that they do bring forward one compelling argument. The advantage of HB 331 hinges on the fiscal responsibility of the legislature, and their […]

A Simple Explaination of Alaska’s Oil Tax Credit Situation

As the Alaska Legislature completes its annual task of setting next year’s budget, conversations about oil tax credits have once again taken center stage. I thought I would take a moment to explain what these credits are, what they are not, and the decision that is now being debated. First […]

Alaska’s PFD – Handout or Income?

  Technically, the Alaska Permanent Fund Dividend (PFD) is a distributed share of the earnings generated by the Permanent Fund. But the dividend has been called a lot of things lately. Some people call it compensation for the sale of resources owned by Alaskans. Some people think of it as […]

Bonding for Tax Credit Purchases may be a Good Deal for Alaska

The Alaska State Legislature is currently considering a bill that would allow the Department of Revenue (DOR) to borrow money to make oil tax credit purchases. The bill is called HB 331 in the House and SB 176 in the Senate. Both bills sit in their respective finance committees, but are […]

The Permanent Fund Forecast Should be Questioned

A few weeks ago, Brad Keithley wrote an article discussing the proposed POMV draw from the Alaska Permanent Fund. If you’re not up to speed on the issue, here’s the short version of the story. The Situation Alaska has about $60 billion sitting in a constitutionally protected account called the […]