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The distributional effects of the Hilmer reforms on the Australian gas industry *
Author(s) -
Verikios George,
Zhang Xiaoguang
Publication year - 2013
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/j.1467-8489.2012.00606.x
Subject(s) - computable general equilibrium , economics , microsimulation , redistribution (election) , gas consumption , household income , consumption (sociology) , economic inequality , inequality , demographic economics , labour economics , econometrics , macroeconomics , geography , mathematical analysis , social science , mathematics , archaeology , environmental economics , sociology , politics , transport engineering , law , political science , engineering
We analyse changes in the Australian gas industry during 1990s that were motivated by the Hilmer Reforms. We estimate the effects on real household income of the changes by combining a computable general equilibrium model with a microsimulation model. Although the structural changes were significant in their effects on the gas industry, they are estimated to have had minor effects on real household income in all Australian regions owing to the small size of the gas industry and household gas consumption at that time, and low importance of gas as an input to other industries. The changes are estimated to have slightly increased income inequality owing to the redistribution of income from labour to other primary factors.