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Economic policy for rural and regional Australia

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  • Freebairn, John W.

Abstract

The efficiency and equity effects of economic policies affecting the quarter of Australians who live in rural and regional Australia (RARA) are reviewed. For the most part it is argued that economy-wide policies, rather than region or industry specific policies, are appropriate. Progressive income taxation, means-tested social security payments and government funded education, health and other services directly and efficiently redistribute to support equity. Subsidies for particular industries in RARA, such as dairy, and input subsidies targeted at RARA, such as community service obligations, misallocate resources and are ineffective in meeting equity goals. Better property rights and procedures for allocating most natural resources, especially water, are necessary.

Suggested Citation

  • Freebairn, John W., 2003. "Economic policy for rural and regional Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(3), September.
  • Handle: RePEc:ags:aareaj:116992
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    References listed on IDEAS

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    1. H. M. Kolsen, 1983. "Effective Rates Of Protection And Hidden Sectoral Transfers By Public Authorities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 27(2), pages 104-115, August.
    2. Dixon, Robert & Shepherd, David, 2001. "Trends and Cycles in Australian State and Territory Unemployment Rates," The Economic Record, The Economic Society of Australia, vol. 77(238), pages 252-269, September.
    3. Stephen P. King, 2002. "Reviewing the Trade Practices Act: The Dawson Committee Inquiry," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(4), pages 423-429.
    4. Ross Garnaut & Vince FitzGerald, 2002. "Issues in Commonwealth-State Funding," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 290-300.
    5. Quiggin, John C., 2001. "Environmental economics and the Murray-Darling river system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(1), March.
    6. Preston, Alison, 1997. "Where Are We Now with Human Capital Theory in Australia?," The Economic Record, The Economic Society of Australia, vol. 73(220), pages 51-78, March.
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    Cited by:

    1. Hicks, J & Basu, P K & Latham, H & Tyson, G & Daniel, M & Sappey, R B, 2010. "Crossing the Great Divide: a Case Study of a Regional Nursing Labour Market in the Central West of New South Wales," Australian Bulletin of Labour, National Institute of Labour Studies, vol. 36(1), pages 84-102.
    2. Bill Pritchard & Matthew Tonts, 2011. "Market Efficiency, Agriculture and Prosperity in Rural Australia," Chapters,in: Globalisation, Agriculture and Development, chapter 3 Edward Elgar Publishing.
    3. Phillip Hone & Iain Fraser, 2004. "Resource Management and Duty of Care," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 11(3), pages 195-209.

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    Keywords

    Community/Rural/Urban Development;

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