New Zealand's unrelenting current account deficits, its trade performance and high external debt level remain central to ongoing economic policy debates. However, what has been overlooked in the discussion of New Zealand's economic relations with its trading partners is the positive contribution...

In recent years, the total debt of the household sector has risen appreciably. This has led to concerns about "excessive" borrowing, and to the possibility that some households may have become unduly vulnerable in the event of unexpected shocks. This paper draws on both aggregate and household...

Reliable estimates of actual household saving rates in New Zealand have proved elusive as existing sources of data have in the past given disparate estimates, making it difficult to reach a consensus of the real rate of household saving. For the first time in New Zealand, however, longitudinal...

The housing market is both large and complex. This paper develops a simple model that captures the essential features of the supply and demand for housing, and which is used to evaluate the impact of a range of policy interventions. Increases in the stock of housing would reduce rents and house...

This working paper provides further detail on the modelling behind Challenges and Choices – New Zealand's Long-Term Fiscal Statement, published on 29 October 2009. Building on the first Statement of 2006, we construct two main fiscal scenarios over a 40- year horizon. The historic trends...

Health status is an important element in the decision to continue working or retire among older workers. Given the demographic projections for the next four decades, there will be increasing opportunities for older workers to remain in the workforce. However, an individual's decision is likely...