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Structural Reform, Macro Policies and Income Distribution

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  • Nisha Agrawal
  • G. A. Meagher

Abstract

Since the mid‐1980s, Australia has been under considerable pressure to restructure its economy. This restructuring has been necessitated by the need to generate surpluses in its external trade account in order to meet the growing interest payments on its foreign debt. To facilitate this process of restructuring, the Commonwealth Government initially used two macro policies that have the desired structural effects: ‘wage moderation’ and ‘fiscal management’. In this paper, we examine the distributional effects of these policies. The analysis depends on simulations using an extended version of the ORANI model of the Australian economy, taken in conjunction with unit record data from an updated version of the 1981–82 Income and Housing Survey database.

Suggested Citation

  • Nisha Agrawal & G. A. Meagher, 1988. "Structural Reform, Macro Policies and Income Distribution," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 21(3), pages 42-52, September.
    • Handle: RePEc:bla:ausecr:v:21:y:1988:i:3:p:42-52
    DOI: 10.1111/j.1467-8462.1988.tb00553.x
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