Taxation and Migration: Policies to Manage a Resource Boom
The Australian economy is currently experiencing a resource boom and policy responses to this boom such as migration and taxation, as well as the broader role of monetary and fiscal policies are the subject of academic as well as public debate. This paper investigates the impact of a resource boom in a dynamic macroeconomic model, focusing on the allocation of resources across sectors and changes in income distribution. Further, the paper contributes to the current policy debate by analysing the role and effectiveness of government policy through its migration policy and taxation of the mining sector, in addressing the short run and steady state impacts of a resource boom. Results illustrate that while increased immigration is an appropriate short run response, long run welfare can be enhanced by higher taxation of the mining sector. Indeed, results show that increased tax revenue can fund appropriate transfers to mitigate the adverse effects on labour income and provision of public goods to increase productivity in the rest of the economy.
|Date of creation:||Dec 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, Monash University, Victoria 3800, Australia|
Web page: http://www.buseco.monash.edu.au/eco/
More information through EDIRC
|Order Information:|| Web: http://www.buseco.monash.edu.au/eco/research/papers/ Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frederick van der Ploeg, 2011.
"Natural Resources: Curse or Blessing?,"
Journal of Economic Literature,
American Economic Association, vol. 49(2), pages 366-420, June.
- Beladi, H. & Marjit, S., 1992.
"Foreign Capital and Protectionism,"
RCER Working Papers
310, University of Rochester - Center for Economic Research (RCER).
- Chi-Chur Chao & Bharat R. Hazari & Jean-Pierre Laffargue & Pasquale M. Sgro & Eden S. H. Yu, 2006.
"Tourism, Dutch Disease And Welfare In An Open Dynamic Economy,"
The Japanese Economic Review,
Japanese Economic Association, vol. 57(4), pages 501-515.
- Jean-Pierre Laffargue & Chi-Chur Chao & Bharat R. Hazari & Pasquale M Sgro & Eden S. H. Yu, 2006. "Tourism, Dutch Disease and Welfare in an Open Dynamic Economy," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00645346, HAL.
- Chi-Chur Chao & Bharat R. Hazari & Jean-Pierre Laffargue & Pasquale M Sgro & Eden S. H. Yu, 2006. "Tourism, Dutch Disease and Welfare in an Open Dynamic Economy," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00310516, HAL.
- Anderson, Kym, 1998.
"Are resource-abundant economies disadvantaged?,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 42(1), March.
- Anderson, Kym, 1997. "Are Resource-Abundant Economies Disadvantaged?," 1997 Conference (41st), January 22-24, 1997, Gold Coast, Australia 135403, Australian Agricultural and Resource Economics Society.
- Juin‐Jen Chang & Lee‐Jung Lu & Shih‐Wen Hu, 2011. "Congestion Externalities of Tourism, Dutch Disease and Optimal Taxation: Macroeconomic Implications," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 90-108, March.
- John Freebairn & John Quiggin, 2010.
"Special Taxation of the Mining Industry,"
Australian Public Policy Program Working Papers
WPP10_3, Risk and Sustainable Management Group, University of Queensland.
- Freebairn, John & Quiggin, John, 2010. "Special Taxation of the Mining Industry," Risk and Sustainable Management Group Working Papers 151525, University of Queensland, School of Economics.
- Gregory, R.G., 1976.
"Some Implications Of The Growth Of The Mineral Sector,"
Australian Journal of Agricultural Economics,
Australian Agricultural and Resource Economics Society, vol. 20(02), August.
- R.G. Gregory, 1976. "Some Implications Of The Growth Of The Mineral Sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 20(2), pages 71-91, 08.
- Bharati Basu & Bharat Hazari, 2008.
"Regional inequality and immiserization,"
Journal of Economic Policy Reform,
Taylor & Francis Journals, vol. 11(3), pages 201-213.
- Nitesh Saha & John Gilbert, 2004. "Immiserizing Growth in a Developing Economy Export Enclave," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 3(3), pages 217-224, December.
- van Wijnbergen, Sweder, 1985. " Optimal Capital Accumulation and the Allocation of Investment between Traded and Nontraded Sectors in Oil-Producing Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(1), pages 89-101.
- Bharat R. Hazari & J. J. Nowak, 2003. "Tourism, Taxes And Immiserization: A Trade Theoretic Analysis," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 279-287, October.
- Egil Matsen & Ragnar Torvik, 2002.
"Optimal Dutch Disease,"
Working Paper Series
2703, Department of Economics, Norwegian University of Science and Technology.
- Cassing, James H. & Warr, Peter G., 1985. "The distributional impact of a resource boom," Journal of International Economics, Elsevier, vol. 18(3-4), pages 301-319, May.
When requesting a correction, please mention this item's handle: RePEc:mos:moswps:2011-33. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simon Angus)
If references are entirely missing, you can add them using this form.