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The Rise and Fall of Exceptional Australian Incomes since 1800

Author

Listed:
  • David Greasley

    (Emeritus Professor of Economic History, University of Edinburgh)

  • Jakob B. Madsen

    () (Professor of Economics, Monash University)

Abstract

We gauge how productivity and factor endowments shaped the rise and fall of Australia’s exceptional incomes. New measures of TFP, which include natural resource inputs, are utilized in an accounting of income growth. Further, the drivers of TFP growth are explored. Pastoralism and mining had negative TFP externalities, and we incorporate these finding into a unified accounting of incomes which distinguishes the roles of endowments and productivity. Nevertheless, TFP growth played an important role in promoting exceptional incomes between 1842-1890. Our findings favour a more balanced interpretation of Australian growth that has roles for natural resources, labour participation and productivity.

Suggested Citation

  • David Greasley & Jakob B. Madsen, 2016. "The Rise and Fall of Exceptional Australian Incomes since 1800," Discussion Papers in Environment and Development Economics 2016-07, University of St. Andrews, School of Geography and Sustainable Development.
  • Handle: RePEc:sss:wpaper:2016-07
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    References listed on IDEAS

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    Cited by:

    1. Laura Panza & Jeffrey G. Williamson, 2019. "Always Egalitarian: Australian Earnings Inequality 1870-1910 1," CEH Discussion Papers 08, Centre for Economic History, Research School of Economics, Australian National University.
    2. Mubashir Qasim & Les Oxley & Eoin McLaughlin, 2018. "Genuine Savings as a Test of New Zealand Weak Sustainability," Discussion Papers in Environment and Development Economics 2018-01, University of St. Andrews, School of Geography and Sustainable Development.

    More about this item

    Keywords

    Australia; productivity; natural resources; knowledge; education;

    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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