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We conjecture that a 'secondary services boom' is primarily responsible for the widespread nature of the gains in employment during Australia's recent 'China boom'. An economy-wide model provides numerical theory for constructing hypotheses, which are tested econometrically. Predictions that include a services expansion and de-industrialisation are tested against pre-boom data and out-of-sample simulations through the boom. The secondary services boom appears clearly in both income and employment, though the effects on manufacturing are ambiguous, with stronger-than-hypothesised observed performance, suggesting that changes in industrial structure and the composition of assistance have favoured surviving manufacturing firms. [ABSTRACT FROM AUTHOR]

The article discusses the uncertainties and challenges of the economic condition of Australia in 2015-2016. It outlines the important economic trends in 2014-2015 that are remnants of the 2013-2014 including the sluggish growth of the domestic final demand. Also emphasized are impact of China's economy on the uncertain macroeconomic outlook and the anticipation that subdued wage growth, increased unemployment rate and weak growth on domestic demand will likely to persist.

This article assesses trends in income inequality and household income levels in Australia since the 1980s, as well as the different causal factors associated with these trends in different periods. Selected socioeconomic outcomes-health, crime and punishment-are discussed and the article argues that trends in these outcomes appear more likely to be related to trends in these causal factors, rather than changes in income inequality, per se. [ABSTRACT FROM AUTHOR]

Over the past decade, Australian multi-factor productivity growth has been predominantly negative, often leading to the view that there is a 'productivity problem' . It is shown that it is not a useful measure and is thus misleading. Exploratory econometric investigations suggest that economies of scale are the primary drivers of productivity growth. However, more research needs to be undertaken to understand the determinants of these economies of scale before any new policy to promote productivity growth is designed. There needs to be greater understanding of the underlying process of innovation that gives rise to economies of both scale and scope. [ABSTRACT FROM AUTHOR]

The article discusses the applicability of the macroprudential policy on the economic condition of Australia. Topics discussed include the impact of the structural pressures from the emerging countries and the move of the Reserve Bank of Australia (RBA) in reducing the interest rates when commodity cycle turned unfavorable. Also emphasized are the proposed tools relevant on the macroeconomic prudential policy including the limitations on credit growth and capital adequacy ratio.