Evaluating the sources of growth and decline in Australia's State economies via historical/decomposition simulations with a dynamic multiregional fiscal model

Australia's State economies have experienced wide disparities in economic growth rates. Little research has been undertaken on the underlying forces responsible for this. Nevertheless, State and Commonwealth governments spend several $billion annually on policies with the ostensible aim of promoting State growth. Disparities in growth rates also contribute to potentially costly movements in population, and (by promoting perceptions of unequal outcomes from policy change) may hinder the inter-government cooperation required for many beneficial policy changes. This project aims to develop a dynamic 8-region CGE model of Australia, and use it to investigate the causes of relative state economic performance.