Deregulation as (Welfare Reducing) Trade Reform: the Case of the Australian Wheat Board |
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| Authors: | Steve McCorriston Donald MacLaren |
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| Institution: | Steve McCorriston is Head of the Department of Economics, University of Exeter United Kingdom and Donald MacLaren is associate professor in the Department of Economics, The University of Melbourne, Australia. |
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| Abstract: | State trading enterprises are distinguishable from private, commercial firms by the nature of their exclusive rights and objectives. Deregulation of the Australian Wheat Board is used to illustrate the effects of these rights and objectives on trade and welfare. Theoretical models are specified and the effects measured through calibrated, partial equilibrium models. It was found that the successive deregulations of the Australian Wheat Board caused it to switch from being equivalent to an export subsidy to, today, being equivalent to an export tax. At the same time, deregulation has not necessarily been welfare enhancing. |
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| Keywords: | Australian Wheat Board deregulation trade distortions and welfare |
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