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

19 Pages Posted: 9 Apr 2013

See all articles by George Verikios

George Verikios

Monash University - Centre of Policy Studies

Xiao‐Guang Zhang

New Zealand Productivity Commission

Date Written: April 2013

Abstract

We analyse changes in the Australian gas industry during 1990s that were motivated by the Hilmer Reforms. We estimate the effects on real household income of the changes by combining a computable general equilibrium model with a microsimulation model. Although the structural changes were significant in their effects on the gas industry, they are estimated to have had minor effects on real household income in all Australian regions owing to the small size of the gas industry and household gas consumption at that time, and low importance of gas as an input to other industries. The changes are estimated to have slightly increased income inequality owing to the redistribution of income from labour to other primary factors.

Keywords: computable general equilibrium, gas, household income distribution, microeconomic reform, microsimulation

Suggested Citation

Verikios, George and Zhang, Xiao‐Guang, The Distributional Effects of the Hilmer Reforms on the Australian Gas Industry (April 2013). Australian Journal of Agricultural and Resource Economics, Vol. 57, Issue 2, pp. 159-177, 2013. Available at SSRN: https://ssrn.com/abstract=2247205 or http://dx.doi.org/10.1111/j.1467-8489.2012.00606.x

George Verikios (Contact Author)

Monash University - Centre of Policy Studies ( email )

Clayton, Vic 3800
Australia

HOME PAGE: http://www.monash.edu.au/policy/

Xiao‐Guang Zhang

New Zealand Productivity Commission

Level 15, Fujitsu Tower
131 The Terrace
Wellington, 8036
New Zealand

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