bluuebunny/crossref_metadata_2025_split huggingface dataset:
The Federal Budget: How Much Difference Do Elections Make?
Authors: Gruen F.H. 
Published: January 2008

AbstractThis article examines the budget process as a selection of priorities and how these priorities change over time with changing economic circumstances. Labor governments spend more on health, employment creation schemes, on welfare housing but less on industry assistance and on assisted immigration. The rate of growth of expenditure on social security decreased sharply after 1975. The revenue section examines how different governments have restructured the tax system. Broadly, the McMahon government pursued mildly progressive tax policies, the Whitlam government strongly progressive tax policies. Fraser's tax policies were regressive (except for taxpayers with children), with the Hawke government's policies in this area being nearer to Whitlam than to McMahon. Grouping budgets into election, pre‐election and post‐election budgets provides interesting contrasts. In terms of current (1984–85) prices the ‘average’ election budget produces tax cuts of $2300 million and expenditure increases of around $1 600 million. The two budgets which preceded the loss of office by the two Liberal Prime Ministers produced particularly large outlay increases. The categories of outlays which show evidence of being used as election‐bait are identified.
Development of Trade Practices Law and Administration
Authors: Bannerman R. M. 
Published: January 2008

AbstractPrior to 1965, there was no operative law in Australia on competition policy, and consequently there was no economic regulation of anti‐competitive practices. A modest beginning came with the 1965 Trade Practices Act, which was born out of considerable political struggle and came into operation in September 1967. During its life there was constant tension between forces for change and forces for continuity. The factors were political, legal, economic and administrative.In 1974 the Act was replaced with a much more forceful and comprehensive statute, which has continued in its fundamentals until the present, responding to the various tensions that surrounded it too. There have been important amendments, there has been incremental change, and there has been a growth of stability in the fundamentals of the Act, coming from the degree of acceptance in industry and the professions and bipartisan support in the Parliament. Proposals by the incoming Labor Government in 1983 for extending and strengthening the Act have been publicly debated to the point that the amendments are now likely to be less controversial than first proposed.The tensions between continuity and change in competition policy may illustrate some of the tensions in economic policy in general, and help to relate competition policy to economic policy in general.The article tries to trace the history of the 1965 Act, and the 1974 Act that succeeded it, in a short and non‐technical way in order to show the working context and the influences that have affected the life and development of economic regulation in the area.
Income Provision in Old Age
Authors: Carmichael Jeffrey , Plowman Kathleen 
Published: January 2008

AbstractFew areas of public policy impinge more directly on individual lifetime welfare than those directed at retirement income. While policy initiatives implemented since the start of the 1970s fall short of major reform, there have nevertheless been substantial changes in the real value of pensions, the coverage of pensions, and the tax treatment of various forms of retirement income. The objective of this article is to catalogue these changes in policy, and to identify the combination of political philosophy and socio‐economic pressures underlying them. It also analyses some of the economic consequences of these policies and examines the question of national superannuation. The article concludes that, for the present at least, any reforms in the area of retirement income provision seem likely to be limited to the refinement of the status quo.
Economic Issues Facing Electricity Supply Authorities
Authors: McColl G. D. 
Published: January 2008

AbstractThe slowing in the growth of electricity consumption in the early 1980s was accompanied by a significant increase in real unit costs in all Australian states. This article examines the economic issues facing government‐owned electricity supply authorities under four headings: policy objectives including the question of whether the authorities should act as agencies to redistribute incomes; the estimation of future demand, especially the need to relate future demand estimates to likely changes in costs; supply aspects, including internal efficiency, cost of capital and size and reliability of generating plant; and pricing policies, particularly the need for time‐of‐use tariffs to improve capacity factors.
State Taxation of the Iron Ore Industry in Western Australia
Authors: Williams K. G. , Fraser R. W. 
Published: January 2008

AbstractAs a contribution to the debate over the taxation of the extractive industries, this article provides estimates of the short run and long run price elasticities of supply for iron ore in Western Australia. Using these estimates, an increase of 1 per cent in the average royalty rate on iron ore is shown to result in a short run decline of 0.61 per cent in the output of iron ore, and a long run decline of 4.36 per cent.It is concluded that raising tax revenue by ad valorem royalties on iron ore leads to a substantial distortion of output, especially after accounting for indirect effects.
Taxation of Non‐Cash Fringe Benefits
Authors: Parmenter B. R. 
Published: January 2008

AbstractThis article examines the introduction of a fringe benefits tax (FBT) as part of a revenue‐neutral package with personal income tax cuts. With an effective tax‐wage bargain in force, such an FBT package will not increase labour costs overall. It will, however, increase the labour costs of employers who, prior to the tax reform, were paying above average shares of their employees' remuneration in non‐cash benefits. Employers whose pre‐reform labour costs contained relatively low shares of non‐cash payments will experience falls in labour costs.
The FBT ‐ Does It Matter Who Pays?
Authors: Lloyd Peter J. , McDonald Ian M. 
Published: January 2008

AbstractThe fringe benefits tax (FBr) has been criticised for being levied on employers. This criticism is based on a confusion between who has the liability to pay the tax and who bears the burden of the tax. We show that the burden of a fringe benefit tax is independent of who pays it. Furthermore our analysis suggests that the burden of the FBT will fall mainly on upper income groups. We also discuss how the imposition of the FBT will change the optimal mix of fringe benefits supplied by employers, with some benefits being ‘cashed out’.
The Australia — New Zealand Farm Problem and the Appropriate Role of Government
Authors: Lloyd A. G. 
Published: January 2008

AbstractAlmost throughout the world, farm incomes tend to be low and unstable compared with incomes in other industries, except where heavily subsidised. This instability has become all the more serious because fluctuations have been around a long‐term downward trend in the fortunes of agriculture which commenced probably prior to World War I.The long‐run world‐wide farm problem is an inevitable consequence of economic growth, which results in a surplus of farmers, and especially of small farmers. We must recognise the quite intractable nature of the long‐term world‐wide component of the problem, as distinct from what can be blamed on our governments, and on the short‐term to medium‐term world market situation.Temporary assistance policy should centre on facilitating adjustment. The ad hoc, inefficient and inequitable palliatives of the past should be avoided. Short‐term assistance should be consistent with longer term objectives for industry development: it should not include output‐based subsidies that encourage continued overproduction and usually provide most assistance to those in least need. The emphasis should be on welfare‐type assistance based on the individual rather than industry‐wide aid.
Workplace Accident Compensation Reform A Reappraisal
Authors: McEwin R. Ian 
Published: January 2008

AbstractDespite the considerable time and money spent by various states investigating mounting financial problems in workers' compensation in recent years, we still do not know very much about the causes of the problems. An important reason for this has been that the debate in Australia has suffered from a number of misconceptions and lack of analytical rigour. This article outlines how some basic economics can provide a framework for analysing many issues in the workers' compensation debate. In doing so the analysis casts doubt on a number of conventional wisdoms, particularly the belief that employers pay for workers' compensation and the assumption that current levels of government involvement in worker disability insurance arrangements are justified. In addition, data from New South Wales are presented that suggest the main reason for increased costs is higher income maintenance payment per claim. As with overseas experience, higher benefit levels appear to give workers more incentive to stay away from work and make claims for injuries whose severity is harder to measure.
Implications of Changes in the composition of Australian Exports for Export Sector Instability
Authors: Martin W. J. 
Published: January 2008

AbstractVariability in export returns is a major source of instability in the Australian economy and, in the presence of price and wage rigidities, may be a substantial cause of social costs. There have been calls for explicit policies to change Australia's pattern of exports away from traditional agricultural and mineral exports. In this article, the implications of changes in the pattern of Australian exports have been examined taking into account the variability of each category and the correlations between categories. From the results it appears that the diversification from rural to mineral exports since 1970 has substantially reduced the variability of export returns. While rural exports remain the most variable component of the total, a reduction in the rural share of total exports and a corresponding expansion of Australias traditional manufactured exports would appear to have surprisingly little effect on export variability.
A Sceptical View of Australia's Current Account and Debt Problem
Authors: Pitchford J. D. 
Published: January 2008

AbstractThis article puts forward the view that there are considerable benefits to be gained from foreign borrowing and that policy actions of a macro nature should be diverted towards internal balance.In Section 2 a brief history of the evolution of approaches to the current account is set out. Recent theories imply that the current account indicates the optimal amount of foreign borrowing both by firms and households, at least with zero fiscal deficits. The present conventional Australian approach to current account issues (Section 3) would seem to be based on theories which were relevant in an era of pegged exchange rates.In Section 4 it is suggested not only that the current account should not be a target of macroeconomic policy, but that any microeconomic policy directed at reducing it should be justified by the existence of externalities in the borrowing/debt process.
How Far Should Mr Keating Go?
Authors: McDonald Ian M. 
Published: January 2008

AbstractAustralia's current account deficit is large by historical standards and so is the boom in private investment spending. The net effect is a level of thrift that is not unusually low. A major uncertainty facing policymakers is how far unemployment can be reduced without causing an inflationary spiral. If unemployment can be reduced without igniting inflation, then there is a case for loosening monetary policy.
Pension Schemes and Incentives: Case Studies from Australia and the United Kingdom
Authors: Creedy John , Disney Richard 
Published: January 2008

AbstractThe use of selective benefits, directed to those considered most in need, has a high ‘poverty reduction efficiency’. But selectivity inevitably produces non‐linearities in the budget constraints facing individuals, which may have incentive effects. The design of a tax and transfer scheme requires these two aspects to be carefully balanced. This article considers the issues in the context of means‐testing within the Australian and UK State pension schemes. In the Australian case, the main question concerns the incentive to save, while in the UK scheme the ‘earnings rule’ presents a strong disincentive to work beyond pension age.
Whither the Balance of Payments?
Authors: Lewis M. K. , Polasek M. 
Published: January 2008

AbstractThis article sets out the analytical framework of the ‘new’ approach to the balance of payments under the conditions of ‘international financial laissez faire’ characterised by financial deregulation, floating exchange rates, and high international capital mobility. It is argued that much of the reasoning underlying the new approach derives from the modus operandi of regional payments systems. The fundamental differences between the benchmark model of regional financing and the current international financial laissez faire are explored, and the extent to which the presence of exchange risk may interfere with the ‘optimal’ debt/borrowing processes posited by the new approach is discussed. The possibility of a transfer problem arising from Australia's rapid accumulation of short‐term foreign debt is considered.While developments in international banking, together with the liberalisation and globalisation of world securities markets, have considerably narrowed the differences between the new global financial environment and regional payments systems, the conclusion of the article is that there are substantial externalities in the international case which are intrinsic to the debt/borrowing process and which are likely to remain a source of continued policy concern.
The Ddeterminants of Individual Wages in Australia: Competitive and Non‐Competitive Influences
Authors: Borland Jeff , Suen Anthony 
Published: January 2008

AbstractThis work provides a test of competitive theories of wage determination by examining the wages of identical workers across industry classifications. The finding that a set of significant industry wage differentials exists would seem to contradict a purely competitive theory of wage determination. However, the apparent presence of unmeasured human capital that is correlated with industry status does provide one potential competitive explanation for the industry wage effects. Moreover, non‐competitive explanations for the differences in industry wages, such as efficiency wage theory or institutional factors, appear to be inconsistent with the nature of the wage differentials.
Trade Taxes and Welfare: The Case of Export Incentives in South‐East Asian Countries
Authors: Falvey Rodney E. , Gemmell Norman 
Published: January 2008

AbstractIt is now widely recognised that the distortions common in many developing countries lead to a bias against exporting. In consequence many governments have begun to provide export incentives aimed at compensating for this bias. This article begins by examining the range of such incentives offered in South‐East Asian countires. It then goes on to use the standard theory of the second‐best to develop a simple framework within which these policies can be assessed. The difficulties encountered in constructing a system of export incentives that will not introduce distortions of their own are highlighted. The constraints imposed by GATT obligations are also noted.
The Macroeconomic Outlook
Authors: Murphy C. W. 
Published: January 2008

AbstractA slow recovery is expected from the current recession. Since reaching a trough in the September quarter of 1990, real gross domestic product (GDP) has followed a flat path which is likely to continue through to the September quarter of 1991. A slow recovery may then commence in the December quarter of 1991. This is consistent with real GDP growth of ‐0.9 per cent in 1990‐91 followed by 2.4 per cent in 1991‐92 and around 3 per cent per annum to the mid‐ 1990s compared with ‘normal’ growth of 2.5 per cent per annum.This recovery is likely to see the unemployment rate at over 10 per cent for most of 1991‐92, before moving to around 8 per cent by the mid‐1990s.Inflation may fall sharply from a peak of 8.0 per cent in 1989‐90 to a trough of 3 to 4 per cent in 199 1–92, due to the recession and movements in oil prices. With a slow recovery, inflation may increase to 4 to 5 per cent per annum in the medium term.The current account deficit has fallen from 5.9 per cent of GDP in 1989‐90 to a likely level of 4.1 per cent in 1990‐91, but part of this gain is cyclical rather than structural. Thus the deficit is expected to increase to around 5 per cent during recovery and remain flat to the mid‐ 1990s, implying steady increases in the ratio of foreign debt to GDP.Looser monetary policy would erode part of the forecast sustained reduction in inflation. Looser fiscal policy would lead to a higher current account deficit.
The Macroeconomic Outlook
Authors: Murphy C. W. 
Published: January 2008

AbstractA slow recovery, commencing in the December quarter of 1997, is expected from the current recession. Overall, gross domestic product (GDP) may increase by 2.8 per cent in the year to the June quarter of 1992, and continue to increase at a similar rate thereafter.This subdued recovery is likely to see the unemployment rate at over 70 per cent to the end of 1992, before moving down slowly to around 8.5 per cent by the mid‐1990s.Consumer price index (CPI) inflation may fall sharply from a peak of 8.0 per cent in 1989‐90 to a trough of under 3 per cent in 1997‐92, due to the recession and movements in oil prices. With a slow recovery, inflation may then increase to 5 per cent per annum in the medium term.The current account deficit has fallen from 6.0 per cent of GDP in 1989‐90 to 4.7 per cent in 1990‐91, despite a fall in the terms of trade of 5 per cent. However, this has been due to the cyclical downturn. With a slow recovery in demand, and rising real labour costs hampering expansion in export and import‐competing industries, the current account deficit may once again reach 6 per cent of GDP by the mid‐1990s, implying steady increases in the foreign debt‐to‐GDP ratio.This forecast assumes monetary policy targets an inflation rate of 5 per cent per annum. Any further easings in monetary policy may undermine the credibility of the inflation objective with the result that the trade weighted index (TWI) exchange rate may drop sharply from 59.
Determinants of Household Weatlh: Assets of Divorcing Couples in Australia
Authors: McCallum John , Beggs John 
Published: January 2008

AbstractRecent reviews indicate that research on wealth in Australia has been limited by a lack of reliable data. The Economic Consequences of Marital Breakdown Survey containing data on the wealth of couples about to divorce, and items from the National Social Science Survey, provide new data for analysis. Shares of net wealth of housing (55 per cent) and superannuation (1 4 per cent) are comparable to those in previous studies. A ‘wealth function’ was developed taking account of age, gender, years of schooling and further education. There was a 2.6 per cent gain for each year of age and a decumulation of assets after age 58 years. Each year of schooling adds another 10 per cent to net wealth. There is a 16 per cent gain for those who have undertaken some further education after completing school. Some 22 per cent of adult Australians report ever receiving an inheritance. This new information begins to provide some of the answers on ‘how’ and, by inference, ‘why’ Australian households save.
A Vision for Australia: Indicators from Singapore
Authors: Edwards Clive T. 
Published: January 2008

This article suggests that Australia could benefit from observing more closely Singapore's current development strategy. The production of labour intensive manufactures primarily by foreign firms and for export formed the core of Singapore's successful economic advance in the 1960s and 1970s. While a factor endowment strength—comparatively cheap labour—lay behind this achievement, the Singapore government actively supplemented this strength by creating a business environment highly favourable to the needs of foreign investors.With full employment and rising wage levels since then, Singapore lost its comparative advantage in the production of low wage manufactures to other East Asian countries. Recently, its development has been based more on created than inherited advantages. The Singapore government argues that the resources crucial to sustained per capita income advance in middle and higher income countries are not natural resources but rather information, technology, investible funds, research and development (R&D) spending and professional people. Singapore aims to develop its business environment to attract such resources to Singapore.The government's vision for Singapore is a nation where the share of professional and highly skilled manpower in the workforce rises over time. This employment goal informs the government's approach to all policy matters: infrastructure development, education, urban development, microeconomic reform, taxation, fiscal, monetary and exchange rate policy, support for manufacturing and service activities, and attitudes to foreign investors.By comparison with Australia, Singapore has a very level playing field. The government sees no conflict between intervening to attempt to create competitive advantage while vigorously pursuing microeconomic reforms to make the playing field in Singapore still more level.
Trade Liberalisation, Closer Economic Relations and Intra‐Industry Specialisation
Authors: Menon Jayant 
Published: January 2008

AbstractMuch of the growth in trade among the industrialised countries, and more recently among countries in the Asia‐Pacific region, has taken the form of intra‐industry trade (HT). Australia has historically had one of the lowest shares of IIT among OECD countries. This article examines how Australia's IIT has changed in the 1980s in response to the process of trade liberalisation and completion of the Closer Economic Relations (CER) pact with New Zealand. HT indexes are estimated for Australia's multilateral and trans‐Tasman trade for 1981 and 1991 for 132 industries using data at the 3 and 4‐digit level of the Standard International Trade Classification (SITC). The results point to a sharp increase in the share of IIT for both multilateral and trans‐Tasman trade. Industries that have undergone the largest reductions in protection levels have increased their shares of IIT quite considerably. Increased intra‐industry specialisation suggests that the short‐run adjustment costs associated with trade liberalisation are likely to be lower. If IIT continues to grow in response to the ongoing process of internationalisation of the Australian economy, then Australia's prospects for expanding its share of world trade are good.
Independent Living and Home Ownership: An Analysis of Australian Youth
Authors: Bourassa Steven C. , Haurin Donald R. , Haurin R. Jean , Hendershott Patric H. 
Published: January 2008

AbstractThis study extends economic models of the joint decisions of living arrangement and home ownership. The cost of shelter is an important factor in determining whether youth live independently (apart from parents and other non‐related adults), and the cost of home ownership relative to renting is important to the tenure decision (choice of owning or renting). Simulations suggest that the post‐1985 decline and eventual removal of the Australian subsidy for first‐time home owners has lowered the home ownership rate among young households by 23 per cent, the equivalent of slowing the time to first ownership by two years.