TY - JOUR
T1 - Service Oligopolies and Australia's Economy-Wide Performance
AU - Tyers, Rod
N1 - Publisher Copyright:
© 2015 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.
PY - 2015/12/1
Y1 - 2015/12/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84949186370&partnerID=8YFLogxK
U2 - 10.1111/1467-8462.12126
DO - 10.1111/1467-8462.12126
M3 - Article
SN - 0004-9018
VL - 48
SP - 333
EP - 356
JO - Australian Economic Review
JF - Australian Economic Review
IS - 4
ER -