Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


November Working, policy perspectives papers

8 November 2005

Immediate Release

Treasury Releases November round of Working papers and policy perspectives papers

The Treasury today released its November round of Working Papers and Policy Perspectives papers.

The Policy Perspectives series aims to bring ideas, analysis and empirical research to bear on topical policy issues. The papers seek to share important insights from economic literature, international policy experience and Treasury research in a manner that is accessible to non-specialist audiences.

The papers released today are:

- Regional Economic Performance in New Zealand: How Does Auckland Compare? (WP 05/08)

- The Effect of New Zealand Superannuation Eligibility Age on the Labour Force Participation of Older People (WP 05/09)

- Measures of Human Capital: a Review of the Literature (WP 05/10)

- Income Growth and Earnings Variations in New Zealand, 1998-2004 (WP 05/11)

- The Contribution of the Primary Sector to New Zealand’s Economic Growth (PP 05/04)

- The Economics of Knowledge: What Makes Ideas Special for Economic Growth?(PP 05/05)

Summaries of the papers follow.

The full papers can be found at: www.treasury.govt.nz/workingpapers



The two Policy Perspectives papers released today are:

1. The Economics of Knowledge: What Makes Ideas Special for Economic Growth?
Knowledge is a fundamental input to innovation and, as a result, is important for economic growth. The paper explores the special characteristics of knowledge that together create the potential for markets on their own to fail to deliver the best outcome for society. Various institutions and policies have evolved to address potential problems around knowledge creation and diffusion. This paper provides a basis for further and more detailed analysis of specific policy proposals. Important questions to answer are those about the costs of policy options relative to their benefits, and whether New Zealand is creating and diffusing less (or more) knowledge than is socially optimal.

2. The Contribution of the Primary Sector to New Zealand’s Economic Growth
Primary sector growth has been strong relative to the whole economy over the last 25 years, and the sector has a generally positive growth outlook. Some of the key factors that will influence the sector’s future performance include international trade conditions, environmental constraints (in particular water and climate change), property rights, biosecurity threats and human capital issues. This paper highlights the government’s role as being able to provide a business-friendly environment (through, for instance, strong institutions, clearly defined property rights, clear price signals and low levels of regulation), to continue to promote free international trade, and to carefully manage environmental impacts.

The four Working Papers released today are:

1. Regional Economic Performance in New Zealand: How Does Auckland Compare?
This paper investigates Auckland’s economic performance relative to other large cities in New Zealand, to medium-sized urban centres and to small towns and rural areas. It uses data from the annual New Zealand Income Survey to examine hourly earnings and other measures of labour productivity and utilisation for a number of regional areas. Previous measures developed by two non-governmental organisations have suggested that Auckland is underperforming relative to other regions in New Zealand. In contrast, the findings of this paper suggest that Auckland’s productivity performance is mostly better than other regions.

2. The Effect of New Zealand Superannuation Eligibility Age on the Labour Force Participation of Older People
New Zealand experienced a sharp rise in labour force participation rates among older people over the period 1991–2001. In most other OECD countries, such participation rates have been in steady decline. The predominant reason for this turnaround was that the age of eligibility for New Zealand Superannuation was raised from 60 to 65 over a nine-year period. Combining an earlier reduction in eligibility age with this later policy reversal, this paper estimates the effect of public pension eligibility on the labour force participation of different age groups.

3. Income Growth and Earnings Variations in New Zealand, 1998-2004
This paper provides an update of changes in the income distribution over the period from 1998-2004. It focuses on changes in working-age individuals' earnings and total income distribution and also their equivalised household total income distribution. There have been broad gains in income to both individuals and households, suggesting the spoils of growth have been shared widely across the income distribution. Inequality was more stable: individual earnings inequality fell 4 percent, individual income inequality was unchanged, while equivalised household income inequality increased 2-3 percent. The main contributors to the observed changes appear to be employment and real wage growth.

4. Measures of Human Capital: a Review of the Literature
Human capital is increasingly believed to play an important role in the growth process; however, adequately measuring its stock remains controversial. This paper identifies three general approaches to human capital measurement: cost-based, income-based and education-based. It presents a critical review of the theories and their applications to data from a range of countries. Emphasis on empirical evidence is given to the case of New Zealand.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news