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Structural change and income distribution: the case of Australian telecommunications

George Verikios () and Xiao-guang Zhang

Centre of Policy Studies/IMPACT Centre Working Papers from Victoria University, Centre of Policy Studies/IMPACT Centre

Abstract: The Australian telecommunications sector experienced substantial structural change during the 1990s, change that increased productivity and reduced costs. At this time, telecommunications was already an important item of household expenditure and input to production. We estimate the effect of the structural change on households depending on their location in the distribution of income and expenditure. Our estimates are calculated by applying a computable general equilibrium model incorporating microsimulation behaviour with top-down and bottom-up links. We estimate significant increases in real income and small increases in inequality from the changes; the pattern of effects is largely uniform across regions. Sensitivity analysis indicates that our results are insensitive to variations in model parameters.

Keywords: computable general equilibrium; income distribution; microeconomic reform; microsimulation; telecommunications (search for similar items in EconPapers)
JEL-codes: C68 C69 D31 L99 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp and nep-sog
Date: 2014-02
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http://www.copsmodels.com/ftp/workpapr/g-240.pdf Initial version, 2014-02 (application/pdf)
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Journal Article: Structural change and income distribution: the case of Australian telecommunications (2016) Downloads
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