A Note on the Timing of Microeconomic Reform in Australia

Brian Dollery () and Joe Wallis
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Joe Wallis: Otago University, New Zealand

Economic Analysis and Policy, 2000, vol. 30, issue 1, 63-73

Abstract: Despite a substantial literature devoted to the nature and mechanics of microeconomic reform in Australia, surprisingly little effort has been directed to the question of the timing of microeconomic reform. This note adapts the seminal arguments of Rodrik (1986; 1994; 1995; 1996) and Fernandez and Rodrik (1991) to the Australian milieu, augmented by Wallis’ (1997) policy conspiracy theory of policy change. It is augmented that Rodrik-style models can explain the infrequency of comprehensive microeconomic reform programs and the phenomenon of “policy fatigue”. Moreover, by adding the Wallis model it is possible to show why a majority of citizens could be persuaded to accept reform notwithstanding the uncertainty of ex post distributional outcomes.

Date: 2000
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