GTAP Resources: Resource Display
| GTAP Resource #1032 |
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"Australian Federalism: A CGE Analysis of Inter-government Transfers" by Dixon, Peter, Mark Picton and Maureen Rimmer Abstract Using a general equilibrium model, we calculate that adoption of equal-per-capita funding of the States by the Commonwealth would raise Australian welfare by at least $150 million annually. Under the present funding system, governments in subsidized States exhibit a flypaper effect: money thrown at them sticks even though households would be better served if it were passed on through lower taxes. Our results are not very sensitive to variations in assumptions concerning population mobility and fiscal externalities. Only by making extreme assumptions concerning congestion or by eliminating flypaper effects could we produce results with annual welfare gains below $150 million. |
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- Domestic policy analysis |
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If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  GTAP Resource 1032 (267.8 KB) Replicated: 0 time(s) Presentation (144.1 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
