Microeconomic Reform and Income Distribution: The Case of Australian Ports and Rail Freight

17 Pages Posted: 8 Nov 2014

See all articles by George Verikios

George Verikios

Monash University - Centre of Policy Studies

Xiao-Guang Zhang

Government of the Commonwealth of Australia - Productivity Commission

Date Written: January 2015

Abstract

We analyze structural changes in the Australian ports and rail freight industries that were driven by microeconomic reform; we find such reforms may generate welfare gains with reduced inequality. We estimate the effects on household income groups of these industry changes by applying a computable general equilibrium model incorporating microsimulation behavior. The structural changes lead to a small increase in household welfare in most regions, with an overall increase of 0.18%, and a small decrease in inequality. Our analysis suggests that policy makers in Australia and other high-income nations should give serious consideration to microeconomic reform of infrastructure industries.

JEL Classification: C68, C69, D31, L92

Suggested Citation

Verikios, George and Zhang, Xiao-Guang, Microeconomic Reform and Income Distribution: The Case of Australian Ports and Rail Freight (January 2015). Contemporary Economic Policy, Vol. 33, Issue 1, pp. 159-175, 2015. Available at SSRN: https://ssrn.com/abstract=2520672 or http://dx.doi.org/10.1111/coep.12059

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

Government of the Commonwealth of Australia - Productivity Commission ( email )

Level 28
35 Collins St.
Melbourne, Victoria, Victoria 3000
Australia

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