Appendix A: Data definitions and sources
Real private consumption
This is the sum of household outlays on consumer goods and services and the final consumption expenditure on non-capital items of private non-profit organisations serving households. Quarterly data are seasonally adjusted in millions of dollars, expressed in 1995/96 prices. Data source is Statistics New Zealand, and the official series starts from 1987:2. (Statistics New Zealand series identifier code is SNCQ.S2RP30GS).
Consumption deflator
This is the implicit price deflator for consumption, calculated by dividing the seasonally adjusted current price quarterly series (Statistics New Zealand series identifier code is SNCQ.S2NP30GS) by the equivalent constant price series (Statistics New Zealand series identifier code is SNCQ.S2RP30GS). Data source is Statistics New Zealand, and the official series starts from 1987:2. The consumption deflator was used to deflate all nominal series.
After-tax labour income
This series was derived using data from Statistics New Zealand, The Treasury, and the Ministry of Social Development. After-tax labour income is defined as wages and salaries less social security contributions and tax plus transfer payments:
LY = (WAGES – ACC - TAXES) + (TRANSFERS)
WAGES is the quarterly wage bill constructed by multiplying the average weekly earnings series (Statistics New Zealand series identifier code is EESQ.SASZ9A) by the total number of wage and salary earners (full-time equivalent adjusted) (Statistics New Zealand series identifier code is HLFQ.SLA3HA), and scaling it into a quarterly series. ACC and TAXES are calculated from the WAGES series based on the official statutory ACC and income tax rates obtained from The Treasury.
TRANSFERS is derived by multiplying the relevant weekly net benefit rates by the estimated number of beneficiaries, and scaling it into a quarterly series. There are three main beneficiary groups in TRANSFERS. The weekly benefit rates are based on the actual main statutory rates obtained from the Ministry of Social Development. The number of beneficiaries are estimated from population and labour market data from Statistics New Zealand.
Population
This is the New Zealand resident population estimates at the end of each quarter, expressed in thousands. The data source is Statistics New Zealand, and the official series starts from 1991:1. This series was backdated by splicing it with the de facto resident population estimates. The population series was used to express all aggregate series into per capita terms. (Statistics New Zealand series identifier code is DPEQ.SDAC).
Wealth
All wealth data comes from the WestpacTrust Household Savings Indicators (HSI). The series starts from 1989:4, and the unit is in millions of dollars. Data is available via subscription only from Morningstar (www.morningstar.net.nz).
Total net wealth is defined as all household holdings of M3 funds, government securities, private share holdings, managed fund assets, life insurance surrender value, solicitors trust accounts and value of housing assets less all borrowings from financial and other institutions.
Total net non-financial wealth is defined as total housing assets less all borrowings from financial institutions for housing.
Total net financial wealth is defined as all non-housing assets less non-housing borrowings.
Unemployment rate
The unemployment rate is the proportion of people in the labour force actively seeking work but not currently employed. Quarterly data are seasonally adjusted in percentage terms. Data source is Statistics New Zealand, and the official series starts from 1985:4. (Statistics New Zealand series identifier code is HLFQ.S1F3S).
Interest rate
The interest rate used in this paper is the quarterly average 90-day bank bill yield as at 11am. Data source is the Reserve Bank of New Zealand, and the official series starts from 1985:1. (Data available at www.rbnz.govt.nz/statistics/exandint/index.html).
Migrant transfers
Migrant transfers are defined as individuals (other than students, medical patients or diplomatic, military or similar personnel stationed abroad) who move to a new country and are expected to stay there for at least a year. In principle, migrant transfers include all the net worth of the migrant in his or her former persona as a non-resident (immigrant) or resident (emigrant). Net migrant transfers is calculated as all transfers by immigrants (Statistics New Zealand series identifier code is BOPQ.S5AC2A1021) less all transfers by emigrants (Statistics New Zealand series identifier code is BOPQ.S5AD2A1021). Quarterly data are seasonally adjusted in millions of dollars. Data source is Statistics New Zealand, and the official series starts from 1987:3.
Mortgage equity withdrawal
Mortgage equity withdrawal is borrowing that is secured on the housing stock but not invested in it. It represents additional funds available for reinvestment or to finance consumption spending. Mortgage equity withdrawal is estimated as the difference between net lending secured on dwellings and households’ gross investment in housing. Mortgage equity withdrawal is derived as the quarterly change in household borrowings against housing less the nominal value of residential investment for the quarter. The derived series is in millions of dollars. Household borrowing data comes from the HSI and residential investment data comes from Statistics New Zealand (Statistics New Zealand series identifier code is SNCQ.S3RP51AN1110S).
