『Abstract
R.G.Gregory's article on the effects of mineral discoveries on
the Australian economy (Australian Journal of Agricultural Economics,
August 1976) has attracted much attention. While the partial-equilibrium
nature of his model has enabled it to be absorbed readily, it
has the usual theoretical limitations of such analyses.
Allowing for general equilibrium repercussions, but still accepting
his general assumptions, some of Gregory's conclusions regarding
the impact of new mineral discoveries require modification or
extension:
(a) Although production of goods other than minerals can be expected
to decline, the production of some goods in this category may
rise;
(b) A social gain is still possible even if outputs of other goods
do not change;
(c) While the price of non-tradeable goods can be expected to
rise, production of non-tradeables may increase or decrease.
We also show the magnified effect of mineral discoveries on the
rents of factors specific to minerals, and the squeeze exerted
on the rents of factors specific to other tradeables.』
I Introduction
II All goods tradeable
III Non-tradeables introduced
IV Treadeables, non-tradeables, labour and rents
V Summary
Bibliography