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Economics Report
In relation to lower vaccination rates in Australia, it is crucial to Australian governments to increase the national immunisation rates. This report will focus on this issue through Australian immunisation rates, assessment on any possible government failure, supporting by economic theory.

FIigure1: any delayed immunisation rates, 2004 and 2009

Figure 2: more than 6 months delayed immunisation rates, 2004 and 2009

In Australia, the timely receipt of 2nd dose of MMR vaccination decreased rapidly (Department of Health, 2013). As can be seen from Figure 1, there was a considerable increase of any delayed immunisation rates from 65% in 2004 to 80% in 2009. Especially, the more than 6 months delayed immunisation rate increased sharply from almost 24% to 35%, as shown in Figure 2.

Figure 3: immunisation rates in Australia, Rwanda, Eritrea and Bangladesh

Figure 4: MMR immunisation rates of children 24-27 months of age

Figure 5: MMR immunisation rates of children 60-63 months of age

Figure 3 shows that Immunisation coverage in Australia as a developed country is 94 per cent, which is lower than those of many developing countries such as Rwanda, Eritrea and Bangladesh (Browne, 2013, May 30). However, there are some regions of Australia where the rates are well below the Australian national average rates. Australia’s MMR immunisation rate of children 24-27 months of age is 93.8%, which is higher than those in both NSW and WA, while Australia’s MMR immunisation rate of children 60-63 months of age is 92.5%, over those rates in SA, WA and NT as well, as shown in Figure 4 and Figure 5 respectively (Medicare, 2013).

Figure 6: the effect of immunisation on economic efficiency. Adapted from “ Essentials of economics” by Hubbard, R. G., 2012

According to Hubbard (2012), in economic view, the immunisation rate is a positive externality that leads to a divergence between private benefits of consumption and social benefits. As can be seen in figure 6, the market

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