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Structural change and income distribution: the case of Australian telecommunications

  • George Verikios
  • Xiao-guang Zhang

The Australian telecommunications sector experienced substantial structural change during the 1990s, change that increased productivity and reduced costs. At this time, telecommunications was already an important item of household expenditure and input to production. We estimate the effect of the structural change on households depending on their location in the distribution of income and expenditure. Our estimates are calculated by applying a computable general equilibrium model incorporating microsimulation behaviour with top-down and bottom-up links. We estimate significant increases in real income and small increases in inequality from the changes; the pattern of effects is largely uniform across regions. Sensitivity analysis indicates that our results are insensitive to variations in model parameters.

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Paper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-240.

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Date of creation: Feb 2014
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Handle: RePEc:cop:wpaper:g-240
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  11. Ye, Qiang, 2008. "Commodity booms and their impacts on the Western Australian economy: The iron ore case," Resources Policy, Elsevier, vol. 33(2), pages 83-101, June.
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  14. John Cockburn & Erwin L. Corong & Caesar B. Cororaton, 2008. "Poverty Effects of the Philippines' Tariff Reduction Program: Insights from a Computable General Equilibrium Analysis ," Asian Economic Journal, East Asian Economic Association, vol. 22(3), pages 289-319, 09.
  15. Kennedy, Steven & Borland, Jeff, 2000. "A Wage Curve for Australia?," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 774-803, October.
  16. Dorothee Boccanfuso & Antonio Estache & Luc Savard, 2009. "A Macro-Micro Analysis of the Effects of Electricity Reform in Senegal on Poverty and Distribution," Journal of Development Studies, Taylor & Francis Journals, vol. 45(3), pages 351-368.
  17. Horridge, Mark & Madden, John & Wittwer, Glyn, 2005. "The impact of the 2002-2003 drought on Australia," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 285-308, April.
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