Taxation and Migration: Policies to Manage a Resource Boom
AbstractThe Australian economy is currently experiencing a resource boom and policy responses to this boom such as migration and taxation, as well as the broader role of monetary and fiscal policies are the subject of academic as well as public debate. This paper investigates the impact of a resource boom in a dynamic macroeconomic model, focusing on the allocation of resources across sectors and changes in income distribution. Further, the paper contributes to the current policy debate by analysing the role and effectiveness of government policy through its migration policy and taxation of the mining sector, in addressing the short run and steady state impacts of a resource boom. Results illustrate that while increased immigration is an appropriate short run response, long run welfare can be enhanced by higher taxation of the mining sector. Indeed, results show that increased tax revenue can fund appropriate transfers to mitigate the adverse effects on labour income and provision of public goods to increase productivity in the rest of the economy.
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 Monash University, Department of Economics in its series Monash Economics Working Papers with number 33-11.
Length: 33 pages
Date of creation: Dec 2011
Date of revision:
Contact details of provider:
Postal: Department of Economics, Monash University, Victoria 3800, Australia
Web page: http://www.buseco.monash.edu.au/eco/
More information through EDIRC
Find related papers by JEL classification:
- E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
- Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-10 (All new papers)
- NEP-DGE-2012-01-10 (Dynamic General Equilibrium)
- NEP-MAC-2012-01-10 (Macroeconomics)
- NEP-MIG-2012-01-10 (Economics of Human Migration)
- NEP-PBE-2012-01-10 (Public Economics)
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.:
- Bharati Basu & Bharat Hazari, 2008.
"Regional inequality and immiserization,"
Journal of Economic Policy Reform,
Taylor and Francis Journals, vol. 11(3), pages 201-213.
- John Freebairn & John Quiggin, 2010.
"Special Taxation of the Mining Industry,"
The Economic Society of Australia, vol. 29(4), pages 384-396, December.
- John Freebairn & John Quiggin, 2010. "Special Taxation of the Mining Industry," Australian Public Policy Program Working Papers WPP10_3, Risk and Sustainable Management Group, University of Queensland.
- Freebairn, John & Quiggin, John, 2010. "Special Taxation of the Mining Industry," Risk and Sustainable Management Group Working Papers 151525, University of Queensland, School of Economics.
- Bharat R. Hazari & J. J. Nowak, 2003. "Tourism, Taxes And Immiserization: A Trade Theoretic Analysis," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 279-287, October.
- R.G. Gregory, 1976.
"Some Implications Of The Growth Of The Mineral Sector,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 20(2), pages 71-91, 08.
- Gregory, R.G., 1976. "Some Implications Of The Growth Of The Mineral Sector," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 20(02), August.
- Nitesh Saha & John Gilbert, 2004. "Immiserizing Growth in a Developing Economy Export Enclave," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 3(3), pages 217-224, December.
- Matsen, Egil & Torvik, Ragnar, 2005.
"Optimal Dutch disease,"
Journal of Development Economics,
Elsevier, vol. 78(2), pages 494-515, December.
- Chi-Chur Chao & Bharat R. Hazari & Jean-Pierre Laffargue & Pasquale M. Sgro & Eden S. H. Yu, 2006. "Tourism, Dutch Disease And Welfare In An Open Dynamic Economy," The Japanese Economic Review, Japanese Economic Association, vol. 57(4), pages 501-515.
- Frederick van der Ploeg, 2011.
"Natural Resources: Curse or Blessing?,"
Journal of Economic Literature,
American Economic Association, vol. 49(2), pages 366-420, June.
- Anderson, Kym, 1998.
"Are resource-abundant economies disadvantaged?,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 42(1), March.
- Anderson, Kym, 1997. "Are Resource-Abundant Economies Disadvantaged?," 1997 Conference (41st), January 22-24, 1997, Gold Coast, Australia 135403, Australian Agricultural and Resource Economics Society.
- Cassing, James H. & Warr, Peter G., 1985. "The distributional impact of a resource boom," Journal of International Economics, Elsevier, vol. 18(3-4), pages 301-319, May.
- Juin‐Jen Chang & Lee‐Jung Lu & Shih‐Wen Hu, 2011. "Congestion Externalities of Tourism, Dutch Disease and Optimal Taxation: Macroeconomic Implications," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 90-108, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simon Angus).
If references are entirely missing, you can add them using this form.