The Impact of the ‘Braddon Blot’ on Australia’s Tariff Structure, 1901-1910: A Leviathanic Analysis

William Coleman ()

No 10, CEH Discussion Papers from Centre for Economic History, Research School of Economics, Australian National University

Abstract: For ten years after the federation of Australian states in 1901, 75 percent of the customs and excise duties collected by the Commonwealth was, by constitutional guarantee, transferred to the States. The paper analyses the impact of this guarantee on tariff rates by modelling the Commonwealth as a revenue maximiser, incentivised by electoral considerations to a spend a certain amount of revenue on the public rather than itself. The model implies that ‘low’ tariff rates would have been made still lower by the guarantee, and ‘high’ rates still higher.

Date: 2020-10
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Persistent link: https://EconPapers.repec.org/RePEc:auu:hpaper:092

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