The Government/Democrats' package of changes in indirect taxes

Peter Dixon and Maureen Rimmer

Australian Journal of Agricultural and Resource Economics, 2000, vol. 44, issue 01, 11

Abstract: Australia is faced with a comprehensive package of changes to its indirect tax system, including the introduction of a GST. The Government’s only quantitative analysis in formulating the package employed PRISMOD, an archaic input‐output price model. PRISMOD sheds dim light on a very limited range of policy‐relevant variables. This article explains how PRISMOD works; this is of continuing relevance because PRISMOD results are a benchmark in negotiations concerning the price effects of the tax package. Then an assessment of the package is made using MONASH, a comprehensive dynamic general equilibrium model. Overall, the conclusions are negative: the package is welfare‐reducing and unnecessary.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:117794

DOI: 10.22004/ag.econ.117794

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