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Structural Change in the Australian Electricity Industry During the 1990s and the Effect on Household Income Distribution

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  • George Verikios
  • Xiao-guang Zhang

Abstract

We develop a framework for estimating the direct and indirect effects on household income of industry changes; it combines a computable general equilibrium model with a microsimulation model in a two-stage simulation procedure. We apply the framework to analysing changes in the Australian electricity industry during 1990s and their effect on household income across households. Almost all income deciles are found to have benefited from the changes but the pattern of effects meant that there was also a small increase in income inequality.

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File URL: http://www.copsmodels.com/elecpapr/g-207.htm
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Bibliographic Info

Paper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-207.

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Date of creation: Sep 2010
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Publication status: Published in Economic Modelling, vol. 32, May 2013, pp. 564-75.
Handle: RePEc:cop:wpaper:g-207

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Keywords: computable general equilibrium; electricity; household income distribution; microeconomic reform; microsimulation;

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