Research Repository

The Effects of Current Fiscal Restraint on the Australian Economy: an Applied General Equilibrium Analysis with Imperfect Competition

Abayasiri-Silva, Kaludura and Horridge, Jonathan ORCID: 0000-0002-1070-5763 (1999) The Effects of Current Fiscal Restraint on the Australian Economy: an Applied General Equilibrium Analysis with Imperfect Competition. Working Paper. Centre of Policy Studies (CoPS).

[img]
Preview
Text
op-91.pdf - Published Version
Available under License Creative Commons Attribution.

Download (126kB) | Preview

Abstract

The objective of this paper is to examine the short run and long run effects of the reduction of government expenditure on the Australian economy using an applied general equilibrium model, which incorporates economies of scale and imperfect competition. The paper describes a 23-sector computable general equilibrium model of the Australian economy, and covers short-run as well as long-run profit-maximising behaviour of the firm. Economies of scale are incorporated in the model at the industry level and the firm level. The pricing behaviour is modelled as perfectly competitive, monopolistically competitive and in other ad hoc ways, as in Harris (1984). The different assumptions about technology, pricing behaviour and firm entry are combined in various ways to produce a variety of scenarios in our simulations. We present results for three different types of non-competitive regime and compare these with results generated by a traditional version of the same model.

Item Type: Monograph (Working Paper)
ISBN: 0732615127
Additional Information:

CoPS/IMPACT Working Paper Number OP-91

Uncontrolled Keywords: C68; L11; L13; AGE model; economies of scale; fiscal policy; government expenditure; production technology; pricing behaviour; market structure; monopolistically competitive
Subjects: FOR Classification > 1402 Applied Economics
Faculty/School/Research Centre/Department > Centre of Policy Studies (CoPS)
Depositing User: Symplectic Elements
Date Deposited: 29 Oct 2015 02:12
Last Modified: 26 Jul 2019 01:11
URI: http://vuir.vu.edu.au/id/eprint/29308
ePrint Statistics: View download statistics for this item

Repository staff only

View Item View Item

Search Google Scholar