Fiscal equalisation in Australia: proposals for an efficiency-based system

We argue that Australian equalisation should be driven by efficiency concerns. To this end, we propose an efficiency-based equalisation model and argue that, if implemented, this model would yield welfare gains in all States, relative to the status quo. Our model is also shown to yield superior welf...

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Main Authors: Petchey, Jeffrey Dean, Levtchenkova, Sofia
Format: Journal Article
Published: Economic Society of Australia 2004
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/25493
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author Petchey, Jeffrey Dean
Levtchenkova, Sofia
author_facet Petchey, Jeffrey Dean
Levtchenkova, Sofia
author_sort Petchey, Jeffrey Dean
building Curtin Institutional Repository
collection Online Access
description We argue that Australian equalisation should be driven by efficiency concerns. To this end, we propose an efficiency-based equalisation model and argue that, if implemented, this model would yield welfare gains in all States, relative to the status quo. Our model is also shown to yield superior welfare outcomes to an equal per capita allocation model (as proposed by some researchers to replace the existing model). The conclusion notes that given the magnitude of the resources involved, and the on-going concerns over equalisation, efficiency and equity, there is a case for a comprehensive and impartial review of the Australian grant system, including the equalisation methodology.
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publishDate 2004
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spelling curtin-20.500.11937-254932017-09-13T15:51:05Z Fiscal equalisation in Australia: proposals for an efficiency-based system Petchey, Jeffrey Dean Levtchenkova, Sofia Efficiency Labour - mobility Local public goods Strategic behaviour Pareto Fiscal equalisation Equity We argue that Australian equalisation should be driven by efficiency concerns. To this end, we propose an efficiency-based equalisation model and argue that, if implemented, this model would yield welfare gains in all States, relative to the status quo. Our model is also shown to yield superior welfare outcomes to an equal per capita allocation model (as proposed by some researchers to replace the existing model). The conclusion notes that given the magnitude of the resources involved, and the on-going concerns over equalisation, efficiency and equity, there is a case for a comprehensive and impartial review of the Australian grant system, including the equalisation methodology. 2004 Journal Article http://hdl.handle.net/20.500.11937/25493 10.1111/j.1759-3441.2004.tb00364.x Economic Society of Australia fulltext
spellingShingle Efficiency
Labour - mobility
Local public goods
Strategic behaviour
Pareto
Fiscal equalisation
Equity
Petchey, Jeffrey Dean
Levtchenkova, Sofia
Fiscal equalisation in Australia: proposals for an efficiency-based system
title Fiscal equalisation in Australia: proposals for an efficiency-based system
title_full Fiscal equalisation in Australia: proposals for an efficiency-based system
title_fullStr Fiscal equalisation in Australia: proposals for an efficiency-based system
title_full_unstemmed Fiscal equalisation in Australia: proposals for an efficiency-based system
title_short Fiscal equalisation in Australia: proposals for an efficiency-based system
title_sort fiscal equalisation in australia: proposals for an efficiency-based system
topic Efficiency
Labour - mobility
Local public goods
Strategic behaviour
Pareto
Fiscal equalisation
Equity
url http://hdl.handle.net/20.500.11937/25493