Search

This study examines the long-run and short-run behavior of public hospital average costs in two Australian States: Victoria and Queensland. Using adjusted weighted inlierequivalent separations as a measure of hospital output, and floor area as a measure of capacity, the study finds a hump- or '∩'-shaped long-run average cost curve at the 5 per cent significance level in both data sets. The study also finds a saucer- or '∪'-shaped relationship between capacity utilization and short-run average cost at the 5 per cent level. [ABSTRACT FROM AUTHOR]

The article provides an overview of the Australian electric industry and considers the supply shortages in Victoria and the possible impact on the state and national economies of future shortages. It points up the problems involved in forecasting demand, and in attempting to match supply with demand when additions to supply involve lead times of ten to twelve years whereas substantial changes in demand can occur within the much shorter construction periods needed for increases in industrial capacity. Initially, the article outlines the structure of the Australian electricity industry. The problems being experienced by the industry in Victoria are discussed, with some reference to Tasmania and New South Wales. The methods used to forecast electricity demand have received considerable, attention recently. The methods used by the State Electricity Commission of Victoria are explained and discussed and recent demand forecasts are assessed. Several alternative approaches are suggested. The article also attempts to assess the costs incurred as a result of electricity shortages.