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


March Working and Perspective Papers Released

31 March 2006
Immediate Release

Treasury Releases March Round of Working Papers and Policy Perspectives Papers

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

The papers released today are:

- The Role of R&D in Productivity Growth: The Case of Agriculture in New Zealand: 1926-27 to 2000-01 (WP 06/01)

- Migration and Economic Growth: a 21st Century Perspective (WP 06/02)

- Affordability of Housing: Concepts, Measurement and Evidence (WP 06/03)

- Financing Infrastructure Projects: Public Private Partnerships (PP 06/02)

- Impacts of a Potential Influenza Pandemic on Economic Growth in New Zealand (PP 06/03)

Summaries of the papers follow.

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


The three Working Papers released today are:

WP 06/01 The Role of R&D in Productivity Growth: The Case of Agriculture in New Zealand: 1927 to 2001

This paper seeks to better understand the relationship between (domestic and offshore) investment in Research & Development (R&D) and overall productivity growth.

In particular, it develops a working model that can be tested with historical data to generate estimates of the impact of R&D on productivity growth in the agricultural sector in New Zealand. The research underscores the importance played by offshoresourced knowledge to the New Zealand agricultural sector’s productivity growth performance and the importance of having a domestic capability that can receive and process the spill-ins from foreign knowledge to best capture the benefits of foreign knowledge for New Zealand. The paper concludes that the estimated average annual rate of return to domestic investment (both public and private) in agricultural R&D was about 17% over the 74 year period.

WP 06/02 Migration and Economic Growth: a 21st Century Perspective

There are gaps in New Zealand-specific theoretical and empirical literature examining the effects of migration trends on macro-economic performance. This paper reviews contemporary international literature and modelling work on links between migration patterns and economic performance. It surveys some of these models and then uses a growth accounting framework to think about the mechanisms through which migration influences GDP per capita growth. To do this the paper primarily focuses on how migrants affect labour utilisation and labour productivity and then moves to the potential implications for policy makers and suggests possible areas for adjustment.

WP 06/03 Affordability of Housing: Concepts, Measurement and Evidence

Housing affordability is difficult to define and there is no sector consensus as to the best way to measure it. This paper discusses the various methodologies associated with the definition and measurement of housing affordability. The paper also uses a range of measures to examine housing affordability trends in New Zealand over the last 20 years. The data reveals no long-term trend when considering all measures – different measures show different movements over time. Housing affordability has appeared to follow a cyclical pattern over the last 20 years. While affordability has been deteriorating on some measures (but not all), current affordability is comparable to 1996 and more favourable than 1986.

The two Policy Perspectives papers released today are:

PP 06/02 Financing Infrastructure Projects: Public Private Partnerships

The main benefits usually attributed to Public Private Partnerships (PPPs) are accelerated provision of infrastructure projects as a result of using private sector finance, and better value for money than can be obtained under conventional private sector procurement. This paper argues that most of the advantages of private sector construction and management can be obtained from conventional procurement methods. The paper concludes that PPPs are worthwhile only if the outcomes set out by the public agency are: specified in service level terms; specified in a way that performance can be measured objectively and rewards and sanctions applied; and likely to be durable over the length of the contract.

PP 06/03 Impacts of a Potential Influenza Pandemic on Economic Growth in New Zealand

This paper evaluates how a pandemic may affect the New Zealand economy. It models the impact of a pandemic as a simultaneous supply and demand shock. Two scenarios are analysed: a severe pandemic and a milder pandemic. The impact of a severe pandemic is estimated to be in the range of a 5-10% reduction in real annual GDP in the year of the pandemic. Over four years the estimated cumulative reduction in real GDP is a loss of 10-15% of real GDP. A milder pandemic would have a considerably less severe economic impact and may reduce GDP by the order of 1-2% in the first year, similar to a typical business cycle downturn.

© 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