Service Oligopolies and Australia's Economy-Wide Performance

Rod Tyers*

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    7 Citations (Scopus)


    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.

    Original languageEnglish
    Pages (from-to)333-356
    Number of pages24
    JournalAustralian Economic Review
    Issue number4
    Publication statusPublished - 1 Dec 2015


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