IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Competition reforms and collaborative federalism: a dynamic multiregional applied general equilibrium analysis

Listed author(s):
  • Madden, John Robert


  • Giesecke, James


In 1995 all Australian state and territory governments entered into an agreement with the federal government to introduce a comprehensive program of national competition policy (NCP) reforms. A number of studies have attempted to assess the benefits of these reforms by (i) estimating, via data envelopment analysis or similar techniques, the productivity gap between Australian industries affected by the reforms and their foreign counterparts, and (ii) then modelling the long-run effects of bringing the relevant Australian industries to world-best-practice levels of efficiency. These studies have been criticised for having severely overestimated the efficiency gains from NCP, and for ignoring the associated labour market adjustments. In this paper we take advantage of FEDERAL-F's historical modelling and forecasting capabilities to take a new approach to the problem. First, to measure the efficiency gains from NCP, we use the observed changes in efficiency in one of the sectors subject to NCP reforms (utilities) immediately after the introduction of NCP (rather than following the earlier approach of making a comparison between actual and best-practice levels of productivity). The changes in the utilities sector's primary factor productivity pre- and post- the introduction of NCP are calculated during historical simulations with FEDERAL-F. We investigate the impacts that the changes in observed productivity improvements have had on regional indicators of aggregate economic activity, with particular attention to indices of regional labour market adjustment costs. The changes in these indices provide measures of the value of labour inputs that are lost as implementation of the NCP alters the flow of people between different labour market categories.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p343.

in new window

Date of creation: Aug 2002
Handle: RePEc:wiw:wiwrsa:ersa02p343
Contact details of provider: Postal:
Welthandelsplatz 1, 1020 Vienna, Austria

Web page:

References listed on IDEAS
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.:

in new window

  1. John Quiggin, 1997. "Estimating the Benefits of Hilmer and Related Reforms," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 30(3), pages 256-272.
  2. Adams, Philip D. & Dixon, Peter B. & McDonald, Daina & Meagher, G. A. & Parmenter, Brian R., 1994. "Forecasts for the Australian economy using the MONASH model," International Journal of Forecasting, Elsevier, vol. 10(4), pages 557-571, December.
  3. Anonymous, 1999. "Impact of Competition Policy Reforms on Rural and Regional Australia," Inquiry Reports 31892, Productivity Commission.
  4. Jones, Rich & Whalley, John, 1989. "A Canadian regional general equilibrium model and some applications," Journal of Urban Economics, Elsevier, vol. 25(3), pages 368-404, May.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa02p343. 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: (Gunther Maier)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.