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The Distributional Effects of the Hilmer Reforms on the Australian Gas Industry

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  • George Verikios
  • Xiao-guang Zhang

Abstract

We analyse changes in the Australian gas industry during 1990s that were driven by the Hilmer Reforms. We estimate the direct and indirect effects on household income of these gas industry changes by combining a computable general equilibrium model with a microsimulation model in a two-stage simulation procedure. The changes lead to minor effects on household income in all regions due to the unimportance of the gas industry at that time. Some regions benefit from the changes and some lose. Income inequality is only slightly affected by the changes.

Suggested Citation

  • George Verikios & Xiao-guang Zhang, 2011. "The Distributional Effects of the Hilmer Reforms on the Australian Gas Industry," Centre of Policy Studies/IMPACT Centre Working Papers g-213, Victoria University, Centre of Policy Studies/IMPACT Centre.
  • Handle: RePEc:cop:wpaper:g-213
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    References listed on IDEAS

    as
    1. Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole & Schubert, Stefanie, 2008. "Analysing welfare reform in a microsimulation-AGE model: The value of disaggregation," Economic Modelling, Elsevier, vol. 25(3), pages 422-439, May.
    2. G. A. Meagher & Nisha Agrawal, 1986. "Taxation Reform and Income Distribution in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 19(3), pages 33-56.
    3. DeVuyst, Eric A. & Preckel, Paul V., 1997. "Sensitivity analysis revisited: A quadrature-based approach," Journal of Policy Modeling, Elsevier, vol. 19(2), pages 175-185, April.
    4. Naqvi, Farzana & Peter, Matthew W, 1996. "A Multiregional, Multisectoral Model of the Australian Economy with an Illustrative Application," Australian Economic Papers, Wiley Blackwell, vol. 35(66), pages 94-113, June.
    5. George Verikios & Xiao-guang Zhang, 2008. "Distributional Effects of Changes in Australian Infrastructure Industries during the 1990s," Staff Working Papers 0802, Productivity Commission, Government of Australia.
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    Cited by:

    1. Maheshwar Rao & Robert Tanton & Yogi Vidyattama, 2013. "‘A Systems Approach to Analyse the Impacts of Water Policy Reform in the Murray-Darling Basin: a conceptual and an analytical framework’," NATSEM Working Paper Series 13/22, University of Canberra, National Centre for Social and Economic Modelling.

    More about this item

    Keywords

    computable general equilibrium; gas; household income distribution; microeconomic reform; microsimulation;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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