3 Other structural factors
3.1 Candidate factors
The term CAB is sometimes used synonymously with the structural budget balance (SBB). However, a number of studies have pointed to factors which may be considered to have a transitory, or windfall, impact on the fiscal balance in addition to the fluctuations caused by the business cycle.
The following key areas merit investigation because they have been identified as issues by others:
- the terms of trade;
- asset prices; and
- output composition.
Each is considered in turn, looking at the implications for New Zealand.
