IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331008.html
   My bibliography  Save this paper

Australian Federalism: A CGE Analysis of Inter-government Transfers

Author

Listed:
  • Dixon, Peter B.
  • Picton, Mark R.
  • Rimmer, Maureen T.

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.

Suggested Citation

  • Dixon, Peter B. & Picton, Mark R. & Rimmer, Maureen T., 2002. "Australian Federalism: A CGE Analysis of Inter-government Transfers," Conference papers 331008, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331008
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331008/files/458.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:331008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.