An Analysis of the Implications for the Gold Mining Industry of Alternative Tax Policies: A Regional Disaggregated Model for Australia
The authors construct a dynamic model of the Australian economy that has a regional subsection representing Western Australia. Within the Western Australia subeconomy, there is a separate technology for the gold mining industry. The authors implement the model and simulate a 2.5 percent tax on gold exports. The outcome shows no fiscal improvement at the national level, although the Western Australian budget improves slightly. Real income falls both nationally and in Western Australia as the trade balance deteriorates, and an increased real interest rate causes investment to fall. The authors conclude that the taxation of gold exports leads to few measurable benefits. Copyright 1997 by The Economic Society of Australia.
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Volume (Year): 73 (1997)
Issue (Month): 223 (December)
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