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The prices of goods and services in New Zealand

This paper analyses the latest (2005) data available from the World Bank’s International Comparison Program (ICP). It assesses the extent to which the prices of goods and services in New Zealand (NZ) differ from those observed in other OECD countries, and Australia in particular.

The main objective is to answer the question: “Are the prices of specific goods and services especially high or low in New Zealand by international standards?” The answer appears to be “yes”, leading naturally to the further questions of: “why, and what might the consequences be for prices and productivity in the wider New Zealand economy?"

Also see the second paper on this work: Explaining international differences in the prices of tradables and non-tradables (with a New Zealand perspective).

See also Working Papers in Public Finance 06/2014.


Productivity growth

The goal of our research is to facilitate a move from an economy that grows by using more “inputs” (such as labour or natural resources), to one where productivity plays a greater role in driving economic growth – essentially, working smarter, with greater financial and knowledge capital employed per worker.

Our research explores a wide range of productivity issues: employment, firm dynamics, technology diffusion, innovation, regional development, spatial and public-sector productivity.

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