Treasury Working Papers
Опубликовано на портале: 27-10-2004Basil M. H. Sharp Treasury Working Papers. 2002. No. 02/20.
Economic theory provides a coherent framework for analysing the elements of growth and sustainable development. Robust policies and appropriate institutional structures are essential to achieving sustainable development. Environmental problems are rooted in failed markets and their resolution requires government taking some kind of action to establish property rights, set standards of liability, apply polluter pays taxes, or regulate. There is ample evidence showing that market based instruments can achieve the same environmental outcome at considerably less cost relative to command and control. Rational policy must seriously consider the use of market-based instruments. A framework for considering the quality of institutional structures vis-à-vis achieving sustainable development is presented. The framework is applied to aspects of the Resource Management Act 1991. Although the Act aims to promote sustainable management it is the primary legal foundation for sustainable development policy. One result of the Act was to devolve a great deal of environmental management and policy to local government. To a limited extent the Act is permissive and creates opportunities for local and regional government to find effective and efficient ways of achieving environmental outcomes that suit their communities. There is a clear preference for command and control in situations where statute provides a legal framework for market based instruments. But the options for using market-based instruments are limited. There are instances where attempts by regional administrators to implement market-based instruments are thwarted either by statute or by coordination difficulties at higher levels of government. Barriers to using market-based instruments are identified along with suggestions for institutional reform.
Опубликовано на портале: 27-10-2004Paul A. David, John Gabriel Goddard Lopez Treasury Working Papers. 2003. No. 01/13.
This monograph, which has been prepared as a Research Report to the New Zealand (New Zealand) Treasury, undertakes three main tasks: (1) describing the various forms of tangible and intangible human capital, their relationship to "capabilities" affecting human well-being, and the channels through which they may contribute to economic growth; (2) reviewing the major theoretical and empirical findings on the microeconomic determinants, and macroeconomic growth effects of investment in human capital; (3) reviewing salient general implications for policies affecting human capital, and indicating measures specifically germane to the situation of the New Zealand economy. For these purposes, the concept of human capital is defined comprehensively, so that it embraces capacities for interpreting flows of sensory data and structured information required for goal-directed individual actions and inter-personal transactions, and for providing various physical labour service- inputs in ordinary production processes. More conventionally, it subsumes the creative faculties for generating new scientific and technological knowledge, the cognitive basis of entrepreneurship, and the competences for managing market and non-market production as well as household consumption activities. The report is organised in three main Parts that address the three major objectives, taking each in its turn. A detailed Table of Contents and an Executive Summary precede the text, which is followed by extensive bibliographic references. A unifying conceptual framework is developed to (a) identify the micro-level processes involved in human capital formation; (b) implicitly aggregate the resulting qualities and capabilities of individuals belonging to successive population cohorts; (c) trace the interrelated influences that the forms of human capital have upon macroeconomic performance. The review of empirical evidence at the macroeconomic level features a discussion of the deficiencies of data and methods in many of the international cross-section studies, and contrasts recent econometric findings on the role of education in economic growth among the developed economies with the conclusions derived through more detailed analyses of their historical experiences. Significant policy implications do emerge from the modern macroeconomic growth literature, but these are very broad in nature and not particularly germane to the situation of small, open economies that may lack a substantial industrial base or the extensive human and institutional infrastructure required to generate the knowledge-base needed for their peoples' well-being and their firms' competitive success in international markets. Nor does the received literature adequately treat the implications of such economies' potential to rapidly alter their respective human resource endowments through differential population migration. Consideration of human capital policies geared more closely to the specific challenges and opportunities facing New Zealand's economy leads to the formulation of a number of novel proposals. These would reform tax treatment of education and training investments by residents and immigrants alike; subsidise new voluntary institutions developing on-the-job training programs under industry sponsorship; undertake public information infrastructure investments in order to reduce the costs of effective access to global knowledge bases in science and technology. Proposals also are considered for integrated government programmes to accelerate the closing of persistent socio-economic disparities within New Zealand society, such as those between Maori and non-Maori.
Saving and growth in an open economy [статья]
Опубликовано на портале: 27-10-2004Iris Claus, David Haugh, Grant Scobie, Jonas Tornquist Treasury Working Papers. 2001. No. 01/32.
Concern has been raised by an apparent lack of saving in New Zealand. It is often argued that policies which foster savings are important, as higher savings will contribute to higher economic growth. This paper investigates the link between saving, investment and growth. In particular, it focuses on issues potentially important in an open economy such as New Zealand. Theory predicts that increased total saving will lead to higher investment and output. In an open economy, total saving comprises saving by domestic agents (government, firms and households) plus foreign saving. Diversified portfolios, large inflows of foreign investment into New Zealand and investment rates comparable to those in other OECD countries suggest that New Zealand, so far, has been able to access foreign saving to meet investment demands. Domestic saving does not appear to have constrained investment and hence growth.
Опубликовано на портале: 27-10-2004Basil M. H. Sharp Treasury Working Papers. 2001. No. 01/27.
Sustainable development is a multifaceted concept that has drawn on a number of disciplines including economics, ecology, ethics, sociology and political science. Sustainable development links the welfare of generations with the capacity of the biosphere to sustain life and has a policy focus. Sustainable development is not a fixed state but rather a process of change in which resource exploitation, the direction of investment, the orientation of technological development and institutional change are made consistent with the future as well as present needs. Practical policy analysis needs to be guided by specific objectives analysed within a consistent and coherent framework. In the absence of an operational framework the policy analyst is left with an indeterminate model to work with. This vacuum can lower the quality of advice, increase reliance on ad hoc decision-making and potentially impact economic growth and the welfare of current and future New Zealanders. This report does not consider the range of policy instruments that could be used in achieving sustainable development outcomes. A framework for economic-environment integration is proposed. The specific framework is shown to depend on the problem. It is not a mechanistic process and careful attention has to be given to grafting a rigorous model for analysis. Three case studies illustrate how economic-environment integration can be achieved. Specific frameworks can be developed for the purpose of empirical analysis and hypothesis testing. Three themes for future research are described. One theme is empirical and suggests a study of existing rules and mechanisms vis-à-vis sustainable development. Another broad theme is directed at obtaining a better understanding of sustainable development within the context of an open-economy dependent on key natural resources for economic growth. Finally, there is a need to develop a range of indicators for policy analysis.