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Abstract
We analyse changes in the Australian gas industry during 1990s that were motivated
by the Hilmer Reforms. We estimate the effects on real household income
of the changes by combining a computable general equilibrium model with a microsimulation
model. Although the structural changes were significant in their
effects on the gas industry, they are estimated to have had minor effects on real
household income in all Australian regions owing to the small size of the gas
industry and household gas consumption at that time, and low importance of gas
as an input to other industries. The changes are estimated to have slightly
increased income inequality owing to the redistribution of income from labour to
other primary factors.