Service Oligopolies and Australia's Economy-Wide Performance
AbstractThe retreat from public ownership of service firms and industries has left behind numerous private monopolies and oligopolies supervised by regulatory agencies. Services industries in government and private ownership generate two-thirds of Australia's value added and employ three quarters of its workforce. This study offers an economy-wide approach that represents monopoly and oligopoly behaviour explicitly. It examines the implications of oligopoly rents for factor markets and the real exchange rate, the extent of sectoral interactions and the potential economy wide gains from tighter price cap regulation, with the results confirming the merit of an economy-wide approach. External shocks, like the present "China boom", are also simulated. Such positive shocks are shown to expand the potential for oligopoly rents and therefore to raise the bar for regulatory agencies. Moreover, less than tight price caps are shown to exacerbate entry-exit hysteresis in boom and bust cycles.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2008-490.
Length: 47 pages
Date of creation: Mar 2008
Date of revision:
Other versions of this item:
- Rod Tyers & Lucy Rees, 2008. "Service Oligopolies And Australia'S Economy-Wide Performance," CAMA Working Papers 2008-05, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L80 - Industrial Organization - - Industry Studies: Services - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-04 (All new papers)
- NEP-BEC-2008-04-04 (Business Economics)
- NEP-COM-2008-04-04 (Industrial Competition)
- NEP-MIC-2008-04-04 (Microeconomics)
- NEP-REG-2008-04-04 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brennan, Timothy J, 1989. "Regulating by Capping Prices," Journal of Regulatory Economics, Springer, vol. 1(2), pages 133-47, June.
- Don, H. & Gunasekera, B. H. & Tyers, Rod, 1990.
"Imperfect competition and returns to scale in a newly industrialising economy : A general equilibrium analysis of Korean trade policy,"
Journal of Development Economics,
Elsevier, vol. 34(1-2), pages 223-247, November.
- Don Gunasekera & Rod Tyers, 1989. "Imperfect Competition and Returns to Scale in a Newly Industrialising Economy: A General Equilibrium Analysis of Korean Trade Policy," School of Economics Working Papers 1989-04, University of Adelaide, School of Economics.
- Mark J. Melitz, 2002.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity,"
NBER Working Papers
8881, National Bureau of Economic Research, Inc.
- Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
- Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
- Dowrick, Steve, 1993.
"Enterprise Bargaining, Union Structure and Wages,"
The Economic Record,
The Economic Society of Australia, vol. 69(207), pages 393-404, December.
- Mumford, Karen & Dowrick, Steve, 1994. "Wage Bargaining with Endogenous Profits, Overtime Working and Heterogeneous Labor," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 329-36, May.
- Philippa Dee, 2003. "Modelling the Policy Issues in Services Trade," Economie Internationale, CEPII research center, issue 94-95, pages 283-300.
- Madden, Gary G & Bloch, Harry & Coble-Neal, Grant, 2002.
"Labour and capital saving technical change in telecommunications,"
10683, University Library of Munich, Germany.
- Gary Madden & Harry Bloch & Grant Coble-Neal, 2002. "Labour and capital saving technical change in telecommunications," Applied Economics, Taylor and Francis Journals, vol. 34(14), pages 1821-1828.
- Edward J. Balistreri & Russell H. Hillberry & Thomas F. Rutherford, 2008.
"Structural Estimation and Solution of International Trade Models with Heterogeneous Firms,"
CER-ETH Economics working paper series
08/89, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Balistreri, Edward J. & Hillberry, Russell H. & Rutherford, Thomas F., 2011. "Structural estimation and solution of international trade models with heterogeneous firms," Journal of International Economics, Elsevier, vol. 83(2), pages 95-108, March.
- Russell H. Hillberry & Edward J. Balistreri & Thomas F. Rutherford, 2007. "Structural Estimation and Solution of International Trade Models with Heterogeneous Firms," DEGIT Conference Papers c012_038, DEGIT, Dynamics, Economic Growth, and International Trade.
- Edward J. Balistreri & Russell H. Hillberry & Thomas F. Rutherford, 2008. "Structural Estimation and Solution of International Trade Models with Heterogeneous Firms," Department of Economics - Working Papers Series 1056, The University of Melbourne.
- Cabral, Luis M B & Riordan, Michael H, 1989. "Incentives for Cost Reduction under Price Cap Regulation," Journal of Regulatory Economics, Springer, vol. 1(2), pages 93-102, June.
- Hertel, Thomas W., 1994. "The 'procompetitive' effects of trade policy reform in a small, open economy," Journal of International Economics, Elsevier, vol. 36(3-4), pages 391-411, May.
- Ricardo J. Caballero & Guido Lorenzoni, 2007.
"Persistent Appreciations and Overshooting: A Normative Analysis,"
NBER Working Papers
13077, National Bureau of Economic Research, Inc.
- Guido Lorenzoni & Ricardo J. Caballero, 2007. "Persistent Appreciations and Overshooting: A Normative Analysis," 2007 Meeting Papers 196, Society for Economic Dynamics.
- Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-48, December.
- Ianchovichina, Elena & Binkley, James & Hertel, Thomas, 2000. "Procompetitive Effects of Foreign Competition on Domestic Markups," Review of International Economics, Wiley Blackwell, vol. 8(1), pages 134-48, February.
- Harry Bloch & Michael Dockery & Wyn Morgan & David Sapsford, 2004.
"Growth, Commodity Prices, Inflation and the Distribution of Income,"
200404, University of Liverpool Management School.
- Harry Bloch & A. Michael Dockery & C. Wyn Morgan & David Sapsford, 2007. "Growth, Commodity Prices, Inflation And The Distribution Of Income," Metroeconomica, Wiley Blackwell, vol. 58(1), pages 3-44, 02.
- Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521816632, November.
- Robert Breunig & Jeremy Hornby & Scott Stacey & Flavio Menezes, 2006. "Price Regulation in Australia: How Consistent Has It Been?," The Economic Record, The Economic Society of Australia, vol. 82(256), pages 67-76, 03.
- Rod Tyers, 2005. "Trade Reform and Manufacturing Pricing Behavior in Four Archetype Asia-Pacific Economies ," Asian Economic Journal, East Asian Economic Association, vol. 19(2), pages 181-203, 06.
- Harris, Richard, 1984.
"Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition,"
American Economic Review,
American Economic Association, vol. 74(5), pages 1016-32, December.
- Richard Harris, 1983. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," Working Papers 524, Queen's University, Department of Economics.
- Bradley, Ian & Price, Catherine, 1988. "The Economic Regulation of Private Industries by Price Constraints," Journal of Industrial Economics, Wiley Blackwell, vol. 37(1), pages 99-106, September.
- Xavier, Patrick, 1995. "Price cap regulation for telecommunications: How has it performed in practice?," Telecommunications Policy, Elsevier, vol. 19(8), pages 599-617, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.