Formats and related files
The authors are especially grateful to Bob Buckle for helpful suggestions on testing for the possibility that the response parameters might change over time, and to participants in a Treasury workshop for challenging questions.
This document was commissioned by the New Zealand Treasury. However, the views, opinions, findings and conclusions or recommendations expressed in it are strictly those of the authors, do not necessarily represent and should not be reported as those of the New Zealand Treasury. The New Zealand Treasury takes no responsibility for any errors, omissions in, or for the correctness of, the information contained in this Paper.
Table of Contents
- 1 Introduction
- 2 Data
- 2.2 Total Hours Worked
- 3 Rate of Investment and the Growth of Capital: An International Comparison
- 4 Labour Productivity and Capital Intensity
- 4.3 The gap in the growth of labour productivity
- 4.4 The gap in the level of labour productivity
- 4.5 Decomposing the output gap
- 5 Returns to Capital
- 6 Relative Prices of Labour and Capital
- 6.2 Evidence on relative factor prices
- 6.3 Do the Underlying Production Functions Differ?
- 6.4 Allowing for dynamic effects
- 6.5 Assessing the contribution from relative prices on the capital-labour ratio gap between New Zealand and Australia
- 6.6 Adjustments to the definition of capital
- 7 Summary and Conclusions
- 8 References
- Appendix 1
- Appendix 2
- Appendix 3