Via Vox Eu comes a piece looking at the distributional consequences of resource booms – using Australian data. Their conclusion:
We need good time series data from developing countries to see whether the distributional impact is bigger there than what we find for Australia. Until then, the analysis here seems timely and relevant, not just for Australia, but for all resource-rich developing countries as the price volatility experienced by the former since the late 19th century was greater than that for the average commodity-exporting low-income country.
The distributional impact of commodity-price shocks in Australia (Canada and New Zealand) should yield important lessons for primary producers from the developmental south.
True – the idea that taxation should be more progressive the more dispersed income and wealth is is an old and widely accepted idea. And this gives us another way to conceptualise it, with a relevant shock for the NZ and Australian context. However, a couple of things to keep in mind when thinking about these issues are: Read more