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Social and Behavioral Sciences Commons

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2002

Faculty of Commerce - Papers (Archive)

Australia’s economy

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Full-Text Articles in Social and Behavioral Sciences

Assessing The Impact Of Change In Petroleum Prices On Inflation And Household Expenditures In Australia, Abbas Valadkhani, W. F. Mitchell Mar 2002

Assessing The Impact Of Change In Petroleum Prices On Inflation And Household Expenditures In Australia, Abbas Valadkhani, W. F. Mitchell

Faculty of Commerce - Papers (Archive)

In this paper we examine three broad issues: (a) the expected impact of the recent petrol price rises on prices throughout the economy, (b) the hypothesis that the economy is now less susceptible to oil price rises than it was in the 1970s when the first major oil prices occurred, and (c) the likely distributional impacts of the petrol price rises? A modified input-output (IO) price model is used to simulate the impact of a two-fold increase in petrol prices on the sectoral and aggregate price indices in Australia. The 1996-97 and 1977-78 IO tables are used. Among the results ...