How does the structure of Government, in particular the extent of fiscal decentralisation, affect long term economic performance in Australia?

Abstract:: This research assesses how the structure of a country's government sector, particularly the distribution of taxation and spending powers among different tiers of government, affects its longer-term economic performance. The integration of macroeconomic, political economy and public sector economic analysis facilitates rigorous theoretical and statistical evaluation of the optimality and efficiency of the structure of government in Australia. This analysis is important and highly topical given Australia s stagnating productivity and the ongoing vigorous debates between the Commonwealth and the States concerning responsibilities over public services such as health and education and other public infrastructure related to transport and water.
Grant type:: ARC Discovery Projects
Funded by:: Australian Research Council

The University of Queensland