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Sovereign Net Worth: An Analytical Framework - WP 99/03

Publication Details

  • Sovereign Net Worth: An Analytical Framework
  • Published: Mar 1999
  • Status: Current
  • Authors: Bradbury, Simon; Brumby, Jim; Skilling, David
    • Hard copy: Available in PDF format only.
     

    Sovereign Net Worth: An Analytical Framework

    New Zealand Treasury Working Paper 99/03

    Published Mar 1999

    Authors: Simon Bradbury, Jim Brumby and David Skilling

    Abstract

    The Fiscal Responsibility Act requires the Crown to articulate targets for a series of fiscal variables, including net worth. Given the dramatic improvement in the fiscal position in recent years, a critical policy question relates to how (and which) measures of Crown net worth should be targeted. This paper sets out a framework for targeting Crown net worth. It does so by supplementing the GAAP-based measure with forward-looking information about spending and tax revenue. The paper argues that targeting net worth for the Crown requires the estimation of a path, rather than a static level.

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