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The National and Regional Consequences of Australia's Goods and Services Tax
Author(s) -
Giesecke James A.,
Tran Nhi H.
Publication year - 2018
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/1475-4932.12419
Subject(s) - affect (linguistics) , goods and services , state (computer science) , element (criminal law) , politics , economics , public economics , economy , international economics , economic system , political science , algorithm , computer science , philosophy , linguistics , law
The major political parties support the tenet of the original GST agreement that GST change requires unanimous state approval. However, GST change could differentially affect state economies, and thus influence support from individual states. We investigate the potential for GST change to differentially affect state economies. We do this by developing a multi‐regional model of the Australian economy that contains details of the legislated features of the GST . In this model, when we change any element of the GST , the economic effects are informed by regional differences in economic structure and their interactions with the details of our GST theory.