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Economic policy for rural and regional Australia
Author(s) -
Freebairn John
Publication year - 2003
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.00220
Subject(s) - equity (law) , subsidy , business , social security , government (linguistics) , natural resource , property rights , public economics , economic growth , economics , economic policy , market economy , political science , linguistics , philosophy , law , microeconomics
The efficiency and equity effects of economic policies affecting the quarter of Australians who live in rural and regional Australia (RARA) are reviewed. For the most part it is argued that economy‐wide policies, rather than region or industry specific policies, are appropriate. Progressive income taxation, means‐tested social security payments and government funded education, health and other services directly and efficiently redistribute to support equity. Subsidies for particular industries in RARA, such as dairy, and input subsidies targeted at RARA, such as community service obligations, misallocate resources and are ineffective in meeting equity goals. Better property rights and procedures for allocating most natural resources, especially water, are necessary.