Work

Interregional transfers: A political economy CGE approach

Year: 2003

Type: article

Abstract: We model the effects of changes in a federal government's inter regional transfers within the context of a CGE model of a federal system in which regional governments act to maximise the welfare of the residents of their region subject to the effects of their decision on regional economic outcomes. Regional governments are modelled as players in a non cooperative game. Simulations are conducted with six versions of a small two region model, each calibrated for a particular Australian state and the rest of the nation. We show that a change in the level of transfers has little influence on per capita private consumption, government consumption and welfare, and that its main effect is to induce migration from the donor region to the recipient region.

Source: Papers of the Regional Science Association

DOI: 10.1007/s10110-003-0191-x

Authors: Nicolaas Groenewold, Alfred J. Hagger, John R. Madden

Institutions: University of Tasmania, The University of Western Australia, Monash University

Language: English

Topic: Local Government Finance and Decentralization

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,740

OpenAlex ID: W2032242534

FWCI: 12.98

Cites: 20

Cited by: 35

Related to: 10