Volume 23, Issue 2, 1993
Articles:
- New Theory and Evidence on Economic Growth and their Implications for Australian Policy (S. Dowrick)
- Can Tax Cuts Increase Investment in a Unionised Economy? (J. Creedy and I. McDonald)
- Contingent Valuation as a Guide to Environmental Policy: An Application to the Conservation of Natural Bushland in Brisbane (J. Windle and R.A. Cramb)
- International Trade Competitiveness Protection and Australian Manufactures (P. Daniels)
- Conceptual Note on Financial and Trade Sanctions against South Africa (B.E. Dollery)
- Book Reviews
New Theory and Evidence on Economic Growth and their Implications for Australian Policy
S. Dowrick
Pages: 105-121
Abstract:
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Full Text PDF (7.1MB)
Can Tax Cuts Increase Investment in a Unionised Economy?
J. Creedy and I. McDonald
Pages: 123-137
Abstract:
This paper derives conditions for tax cuts to stimulate output without crowding out investment. In the model the level of output is constrained by an aggregate supply constraint. This constraint is based on the real wage demands of an insider-dominated trade union seeking to maximize its objective function. It is found that, in the model, tax cuts have a powerful supply-side effect and, for reasonable values of the parameters, will not force a crowing out of investment. Of the tax cuts considered, raising the income tax threshold has a larger supply side effect than reducing the marginal tax rate.
Full Text PDF (3.05MB)
Contingent Valuation as a Guide to Environmental Policy: An Application to the Conservation of Natural Bushland in Brisbane
J. Windle and R.A. Cramb
Pages: 139-149
Abstract:
This report presents an overview of the Contingent Valuation Method and describes a small-scale, exploratory application, using a bidding technique, to determine how much local respondents were willing to pay to preserve, upgrade and maintain an area of natural bushland in the Whites Hill/Pine Mountain Reserve, Camp Hill, Brisbane. Starting point bias was tested for and was found to occur, with a one dollar increase in the starting bid resulting in a $0.80 increase in the final bid. Evidence also suggested the existence of compliance bias. Respondents were unfamiliar with valuing environmental goods and appeared to use ‘cues’ in the bidding process to formulate their answers, hence the estimated willingness to pay was not considered accurate. The study did however suggest that respondents valued the area of urban bushland and were willing to pay money to preserve, upgrade and maintain the area.
Full Text PDF (2.96MB)
International Trade Competitiveness Protection and Australian Manufactures
P. Daniels
Pages: 151-178
Abstract:
Australia’s weak trade performance in manufacturing is often seen to be a significant contributor to the nation’s balance of payments and external debt difficulties. The paper develops and applies a simple methodology for assessing trade competitiveness at a disaggregated industry level. The unique aspect of the approach is the attempt at incorporating existing levels, and changes in, trade performance and protection, and likely future growth in market demand. The findings provide some evidence which throws doubt on the assumption that reduced protection in manufacturing will be a substantial force in attaining the desired longer-term trade competitiveness objectives of Australian industry policy. The observed relationship between changes in protection and trade is weak and ambiguous at best. There has also been no sustained improvement in trade performance in manufacturing, total merchandise, or goods and services overall, since the early 1970s. Furthermore, the industry groups with high competitive advantage potential in the 1970s have not benefited from the structural readjustment accompanying reduced protection.
Full Text PDF (6.29MB)
Conceptual Note on Financial and Trade Sanctions against South Africa
B.E. Dollery
Pages: 179-188
Abstract:
The longevity, range and well-documented nature of economic sanctions against South Africa render it especially useful for developing a generic analytical framework aimed at evaluating economic sanctions as an instrument of foreign policy. Using conventional general equilibrium analysis, it is possible to derive comparative static conclusions about the relative effects of financial and trade sanctions. In broad terms, under the small country assumption, the burden of financial sanctions resides in a decrease in national income through an income effect, whereas trade sanctions reduce national income through a mechanism involving both income and substitution effects. Moreover, for small developing economies, while the sectoral burden of financial sanctions is borne exclusively in the capital-intensive importables sector, trade sanctions place a greater proportion of the sectoral burden on the labour-intensive exportable sector.
Full Text PDF (2.33MB)
Book Reviews:
- The Future of Economics (J.D. Hey)
- Changing Aims in Economics (T. Hutchinson)
- Frontiers of Political Economy (G. Carchedi)
- Towards a Marlet Economy in Central and Eastern Europe (H. Glersch)
- Mastering Risk: Environment, Markets and Politics in Australian Economic History (C. White)
- Lobbying Canberra in the Nineties: The Government Relations Game (P. Sekuless)
- No is not an Answer: Lobbying for Success (P. Cullen)
- Disarray in World Food Markets: A Quantitative Assessment (R. Tyers and K. Anderson)
- The Reality of International Economic Policy Coordidation (H.J. Blumenstein)
- The making of Economic Policy: History, Theory, Politics (S.M. Sheffrin)
- Australian Macroeconomic Policy in a Changing World Environment 1973-90) (V. Argy)
- The Art of Full Employment: Unemployment Policy in Open Economies (C. de Neuborg)
- Citizenship and Employment: Investigation Post-Industrial Options (J. Pixley)
- Finance and the International Economy 4: The Amex Bank Review Prize Essays: In memory of Robert Marjolin (R. O’Brien)
- Japanese Financial Markets and the Role of the Yen (C. McKenzie and M. Stuchbury)
- Tax Reform and the cost of capital (D. Jorgenson and K. Yun)
- Duality and Modern Economics (R. Cornes)
- Long-Run Economic Relationships: Readings in Cointegration (R.F. Engle)
Pages: 191-225
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