Fiscal Interactions and the Case for Carbon Taxes Over Grandfathered Carbon Permits

This paper provides simple formulas for adjusting the costsof carbon taxes and tradable carbon permits to account for interactionswith pre-existing tax distortions in the labour market. Bothpolicies reduce labour supply as they increase product pricesand reduce real household wages; the resulting efficiency lossesin the labour market can be substantial relative to partialequilibrium abatement costs. However, much of this added costcan be offset, and perhaps more than offset when additionaldistortions from the tax system are considered, if revenuesfrom carbon taxes or auctioned permits are used to reduce distortionarytaxes. Consequently, there can be a strong case on efficiencygrounds for using carbon taxes or auctioned permits over grandfatheredcarbon permits.     

THE REPORTING OF INVESTMENTS IN ASSOCIATED COMPANIES AND CREDIT EVALUATIONS: AN EXPERIMENTAL STUDY

Policymakers have been concerned with the problem of accounting for investments in associated companies. A field experiment was conducted to investigate the effects of alternative methods of recognising revenue from investments in associated companies on creditors' evaluations and decisions. Results indicate that most creditors do not adjust financial statements based on alternative methods of accounting and that different methods of accounting affect credit assessments and decisions. The implications of these findings for policymakers and creditors are discussed.     

Local authorities and the expansion of credit unions, 1991-93

This paper outlines the contribution made by metropolitan authorities to the establishment of credit unions. It reviews the reasons for establishing credit unions, the assistance provided to them, the problems faced in setting them up and the changes required to make credit unions more effective instruments of community regeneration.     

Macroeconomic Policy in Australia Since the Sixties

This article reviews macroeconomic policy in Australia since the 1960s. It is argued that economic thinking by Australian governments progressed from a Keynesian approach to a classical approach in 1975 and then to a Keynesian-classical synthesis in 1983. To the usual major indicators of macroeconomic performance, unemployment and inflation, the article adds a third indicator, called thrift. Thrift is a measure of how society is allocating its resources between current and future consumption. The record of thrift for Australia since the 1960s is described and evaluated.