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The Effects of Reallocating General Revenue Assistance among the Australian States

Author

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  • PETER B. DIXON
  • JOHN R. MADDEN
  • MATTHEW W. PETER

Abstract

The Australian government distributes about 4 per cent of GDP to the State governments in the form of general revenue assistance. The distribution formula, which favours the less populous States, is a source of resentment in Victoria and NSW. We use two general equilibrium models to analyze the regional employment, output and efficiency effects of proposed changes in the formula

Suggested Citation

  • Peter B. Dixon & John R. Madden & Matthew W. Peter, 1993. "The Effects of Reallocating General Revenue Assistance among the Australian States," The Economic Record, The Economic Society of Australia, vol. 69(4), pages 367-381, December.
    • Handle: RePEc:bla:ecorec:v:69:y:1993:i:4:p:367-381
    DOI: 10.1111/j.1475-4932.1993.tb02118.x
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    Cited by:

    1. Y. Qiang, 1999. "CGE Modelling and Australian Economics," Economics Discussion / Working Papers 99-04, The University of Western Australia, Department of Economics.
    2. Nicolaas Groenewold & Alfred J. Hagger & John R. Madden, 2001. "Competitive Federalism: A Political-Economy General Equilibrium Approach," Economics Discussion / Working Papers 01-10, The University of Western Australia, Department of Economics.
    3. Madden, John Robert & Groenewold, Nicolaas & Hagger, Alfred James, 2000. "Competitive Federalism: A Bargain-Theoretic General Equilibrium Approach," ERSA conference papers ersa00p425, European Regional Science Association.
    4. Nicolaas Groenewold & Alfred Hagger & John Madden, 2003. "Interregional transfers: A political-economy CGE approach," Papers in Regional Science, Springer;Regional Science Association International, vol. 82(4), pages 535-554, November.
    5. Albert Solé-Ollé & Núria Bosch, 2005. "On the Relationship between Authority Size and the Costs of Providing Local Services: Lessons for the Design of Intergovernmental Transfers in Spain," Public Finance Review, , vol. 33(3), pages 343-384, May.
    6. Carbone, Jared & Rutherford, Thomas F. & Helm, Carsten, 2002. "Carbon Abatement, Coalition Formation, and International Trade in Greenhouse Gas Emissions," Conference papers 331061, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. James A. Giesecke & John R. Madden, 2013. "Evidence-based regional economic policy analysis: the role of CGE modelling," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 285-301.
    8. Glyn Wittwer & Mark Horridge, 2010. "Bringing Regional Detail to a CGE Model using Census Data," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(2), pages 229-255.
    9. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 379-475, Elsevier.
    10. Peter B. Dixon & Maureen T. Rimmer, 2003. "State-level Dynamic CGE Modeling for Forecasting and Policy Analysis," Centre of Policy Studies/IMPACT Centre Working Papers ip-82, Victoria University, Centre of Policy Studies/IMPACT Centre.
    11. Hikaru Ogawa, 2004. "Fiscal Externality, Rent Sharing and Equalisation Transfers in Japan," Urban Studies, Urban Studies Journal Limited, vol. 41(1), pages 195-205, January.

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