Oil Crisis, Market Reforms, and Human Welfare： An Econometric Analysis of the Australian Economy

As an active trader in international crude oil and petroleum product markets, Australia＇s human welfare is affected by oil crisis and contagion from the perspectives of economic growth, income inequality, and environmental sustainability. This paper investigates the impacts of oil price shocks upon Australia＇s gross domestic product （GDP） growth, Gini coefficients, and carbon dioxide emissions per capita from 1970 to 2012 with yearly frequency. Hypotheses concerning whether Australia＇s economic immunity against oil crisis is affected after the deregulation of oil market and whether endogenous oil price shocks account for more variations in human welfare than exogenous oil price shocks are tested. The methodologies include a theoretic model and a series of econometric tests. For the short-run dynamics, oil price is integrated into the model both linearly and non-linearly. Oil price shocks are categorized into exogenous and endogenous shocks. The conclusions are that inflated oil prices exert mainly non-linear negative impacts upon human welfare indicators and exogenous shocks induce endogenous shocks through labor price, Consumer Price Index （CPI）, interest rate, and exchange rate. For the long-run equilibrium, non-linear shocks＇ effects decay more slowly than linear shocks and the impacts of endogenous shocks last longer than that of exogenous shocks. Finally, oil market policies are evaluated and proposed.

Wage and Income Distribution in China:Review and Outlook

Under the planned economy,China’s distribution relations were relations among the state,state-run enterprises,employees and the collective economy;relations between heavy industry and light industry;and relations between cities and the countryside.After China’s transition to a market-oriented economy,the distribution relations among the state,state-run enterprises and employees evolved into distribution relations between the government,enterprises and households;the distribution relations between heavy industry and light industry evolved into distribution relations between the state sector and the private sector;and the distribution relations between cities and the countryside evolved into distribution relations between original urban dwellers and migrant populations.Wage system reform was carried out throughout the transition of these three types of distribution relations.Income distribution contradictions in China,which are a problem left over from history and intrinsic to the market-based economy,eased over the years.Some people and regions achieved prosperity,and urban-rural and interregional income gaps narrowed.However,widening household income gaps pose barriers to China’s economic sustainability and vision of building a moderately prosperous society in all respects.Mechanisms to promote common prosperity are incomplete and inadequate.The disequilibrium of functional distribution is an important cause of these income inequalities.The overall wage level of ordinary workers is low.In the future,China'should give full play to the decisive role of the market in primary distribution to ensure proper return to all types of factors,and enhance redistribution to achieve common prosperity for all its people.