THE ECONOMIC IMPACT OF TARIFFS IN THE 1930s IN AUSTRALIA: THE BRIGDEN REPORT RE‐EXAMINED*

Abstract

In 1927, the Prime Minister of Australia, Mr S.M. Bruce, appointed a committee of economists to undertake an inquiry into the economic impact of the Australian tariffs. The Report of this committee, known as the Brigden Report, was published in July 1929. In assessing the impact of tariffs on the Australian economy, the committee concluded that the protective tariff has been an effective means of securing a higher standard of living for a larger population. The purpose of this paper is to examine this conclusion quantitatively by simulating a computable general equilibrium (CGE) model of the 1930s in Australia. The results support the above conclusion of the Brigden Committee if the demand for Australian primary exports were price inelastic.

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