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Potential Benefits of the National Reform Agenda


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  • Productivity Commission


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    This research paper which investigated the potential economic and revenue impacts of a National Reform Agenda (NRA) found that the NRA has the potential to significantly raise national output and incomes in Australia. The main purpose of the study was to help governments better understand the scale and distribution of the reforms’ anticipated broad economic and fiscal impacts. There are three streams to the National Reform Agenda: human capital, competition and regulatory reform. The Commission was asked to provide estimates of: the economic benefits potentially available from implementing proposed reforms and outcome objectives; and the total revenue benefits expected to accrue to the Australian Government and each of the State and Territory governments from the potential economic benefits generated by the NRA. The Commission found that reforms aimed at improving productivity and efficiency in energy, transport and related infrastructure and reducing the regulatory burden on business, if fully implemented, could increase GDP in time by up to around $17 billion or nearly 2 per cent. If the potential for a 5 per cent improvement in the productivity of health service delivery was realised, this would result in resource savings of around $3 billion and increase GDP by some 0.4 per cent. Human capital reforms targeting health promotion and disease prevention, education and training, and work incentives could potentially yield even larger gains. The Commission found that all jurisdictions would receive increased tax revenues flowing from reform induced growth. For the competition and regulatory reform streams, Governments’ combined net revenues could rise by as much as $5 billion. Potential net revenue outcomes are more speculative for the ‘human capital’ reforms.

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    Bibliographic Info

    Paper provided by Productivity Commission, Government of Australia in its series Research Papers with number 0701.

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    Length: 463 pages.
    Date of creation: Feb 2007
    Date of revision:
    Handle: RePEc:ris:prodrp:0701

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    Keywords: Competition; Disease prevention; Education; Electricity; Gas; Health promotion; Health services; Human capital; Ports; Railways; Regulatory reform; Roads; Training; Workforce participation;

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    1. Frijters, Paul & Gregory, Bob, 2006. "From Golden Age to Golden Age: Australia's "Great Leap Forward"?," IZA Discussion Papers 2068, Institute for the Study of Labor (IZA).
    2. John Bryant & Veronica Jacobsen & Matthew Bell & Daniel Garrett, 2004. "Labour Force Participation and GDP in New Zealand," Treasury Working Paper Series 04/07, New Zealand Treasury.
    3. Eliana Garces & Duncan Thomas & Janet Currie, 2000. "Longer Term Effects of Head Start," Working Papers 00-20, RAND Corporation Publications Department.
    4. James B. Bushnell & Erin T. Mansur & Celeste Saravia, 2007. "Vertical Arrangements, Market Structure, and Competition An Analysis of Restructured U.S. Electricity Markets," NBER Working Papers 13507, National Bureau of Economic Research, Inc.
    5. Lixin Cai & Bob Gregory, 2005. "Unemployment Duration and Inflows onto the Disability Support Pension Program: Evidence from FaCS LDS Data," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 38(3), pages 233-252, 09.
    6. António Afonso & Miguel St. Aubyn, 2005. "Non-parametric approaches to education and health efficiency in OECD countries," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 227-246, November.
    7. Jacobsen, Joyce P., 1999. "Labor force participation," The Quarterly Review of Economics and Finance, Elsevier, vol. 39(5), pages 597-610.
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    Cited by:
    1. Anderson, Kym & Lloyd, Peter J & Maclaren, Donald, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," CEPR Discussion Papers 6436, C.E.P.R. Discussion Papers.


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