Service Oligopolies and Australia's Economy‐Wide Performance

24 Pages Posted: 2 Dec 2015

See all articles by Rod Tyers

Rod Tyers

Australian National University (ANU) - School of Economics; The University of Western Australia - Department of Economics

Date Written: December 2015

Abstract

Australia's services industries now contribute almost four‐fifths of gross domestic product. The microeconomic reforms of the 1990s left behind numerous regulated private service oligopolies that contribute one‐quarter. Using an economy‐wide modelling approach that represents service oligopoly behaviour explicitly, the extent of sectoral interactions and the potential economy‐wide gains from price cap regulation are assessed. Non‐linear interaction between oligopoly industries is shown to support economy‐wide over sectoral analysis. Moreover, the results from the economy‐wide modelling suggest that the cost of unabated oligopoly distortions would amount to one‐third of Australia's gross domestic product.

Suggested Citation

Tyers, Rod, Service Oligopolies and Australia's Economy‐Wide Performance (December 2015). Australian Economic Review, Vol. 48, Issue 4, pp. 333-356, 2015, Available at SSRN: https://ssrn.com/abstract=2697852 or http://dx.doi.org/10.1111/1467-8462.12126

Rod Tyers (Contact Author)

Australian National University (ANU) - School of Economics ( email )

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The University of Western Australia - Department of Economics ( email )

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HOME PAGE: http://www.business.uwa.edu.au/school/staff-profiles?type=profile&dn=cn%3DRodney%20Tyers%2Cou%3DEcon

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