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Working Papers

Motu working papers are research materials circulated by their authors for the purpose of information and discussion. They are reviewed, but not formally refereed. Any opinions expressed in papers are those of the author and do not represent a Motu position.

How does Changing Land Cover and Land Use in New Zealand relate to Land Use Capability and Slope?

Land cover and use are critical for climate change, water quality and use, biodiversity and soil conservation as well as important drivers of rural economic activity and the evolution of rural communities. The Land Use in Rural New Zealand (LURNZ) model is a simulation model that predicts...

Todd, Maribeth and Suzi Kerr. 2009. "How Does Changing Land Cover and Land Use in New Zealand relate to Land Use Capability and Slope?" Motu Working Paper 09-17.

Allocation of New Zealand Units within Agriculture in the New Zealand Emissions Trading System

When agricultural emissions are included in the New Zealand Emission Trading System (ETS) the economics of farming will be significantly altered. Under the legislation current in October 2009, in the early years of the system the agricultural sector as a whole would have received NZ units...

Kerr, Suzi and Wei Zhang. 2009. "Allocation of New Zealand Units within Agriculture in the New Zealand Emissions Trading System," Motu Working Paper 09-16.

The Need for Speed: Impacts of Internet Connectivity on Firm Productivity

Fast internet access is widely considered to be a productivity-enhancing factor. Internet access speeds vary regionally within countries and even within cities. Despite articulate pleas for network upgrades to accelerate internet access, there is little rigorous research quantifying...

Grimes, Arthur; Cleo Ren and Philip Stevens. 2009. "The Need for Speed: Impacts of Internet Connectivity on Firm Productivity," Motu Working Paper 09-15.

Fiscal, Distributional and Efficiency Impacts of Land and Property Taxes

Land taxes are known to be amongst the most efficient forms of taxation since land is an immobile factor; property (capital value) taxes are less efficient owing to the tax on improvements. However there is little international (or New Zealand) evidence regarding the distributional impacts...

Coleman, Andrew and Arthur Grimes. 2009. "Fiscal, Distributional and Efficiency Impacts of Land and Property Taxes," Motu Working Paper 09-14.

The Long Term Effects of Capital Gains Taxes in New Zealand

This paper develops a model of the housing market incorporating a construction sector, a rental sector, and a housing demand sector to examine the long term consequences for the housing market of different types of capital gains taxes. The sector is based on an overlapping generations model...

Coleman, Andrew. 2009. "The Long Term Effects of Capital Gains Taxes in New Zealand," Motu Working Paper 09-13.

Spatial Effects of ‘Mill’ Closures: Does Distance Matter?

When small towns experience a major infrastructure shock, such as a ‘mill’ closure, the effects can be devastating. We analyse the effects of two major freezing works closures in New Zealand, in Patea (1982) and Whakatu (1986). These two examples provide an interesting comparison: Whakatu...

Grimes, Arthur and Chris Young. 2009. "Spatial Effects of 'Mill' Closures: Does Distance Matter?" Motu Working Paper 09-12, Motu Economic and Public Policy Research, Wellington.

The Impact of Immigration on the Labour Market Outcomes of New Zealanders

This paper uses data from the 1996, 2001 and 2006 New Zealand Census to examine how the supply of immigrants in particular skill-groups affects the employment and wages of the New Zealand-born and of earlier migrants. We first estimate simple CES production functions that allow for...

David C. Maré and Steven Stillman. 2009. "The Impact of Immigration on the Labour Market Outcomes of New Zealanders," Motu Working Paper 09-11.

The Labour Market Adjustment of Immigrants in New Zealand

This paper uses data from the 1997-2007 New Zealand Income Survey to examine the economic performance of immigrants in New Zealand. Specifically, we use a synthetic cohort approach to examine how employment rates, hourly wages, annual income and occupations for immigrants compare to those...

Stillman, Steven and David C. Maré. 2009. "The Labour Market Adjustment of Immigrants in New Zealand," Motu Working Paper 09-10.

Nutrient Trading in Lake Rotorua: Cost Sharing and Allowance Allocation

This paper clarifies how the benefits and costs of water quality improvements in Lake Rotorua are likely to be shared in the absence of a trading system; presents different perspectives on and principles for deciding how costs should be allocated; and then shows how different options for...

Kerr, Suzi and Kelly Lock. 2009. "Nutrient Trading in Lake Rotorua: Cost Sharing and Allowance Allocation," Motu Working Paper 09-09.

A Simple Model of Housing Rental and Ownership with Policy Simulations

This paper develops a simple model that captures the essential features of the supply and demand for housing, and which is used to evaluate the impact of a range of policy interventions. The model incorporates functions describing the demand to rent or purchase housing, a function...

Coleman, Andrew and Grant M. Scobie. 2009. "A Simple Model of Housing Rental and Ownership with Policy Simulations," Motu Working Paper 09-08.

Variations in Earnings Growth: Evidence from Earnings Transitions in the NZ Linked Income Survey

This paper uses the New Zealand Linked Income Supplement (LIS) to investigate the annual transitions in hourly earnings of working age individuals over the years 1997 to 2004.  I first construct transition matrices for annual changes in weekly and hourly earnings, to enable comparison with...

Crawford, Ron. 2009. "Variations in Earnings Growth: Evidence from Earnings Transitions in the NZ Linked Income Survey," Motu Working Paper 09-07.

Agglomeration Elasticities in New Zealand

This paper analyses the relationship between firms’ multi-factor productivity and the effective employment density of the areas where they operate. Quantifying these agglomeration elasticities is of central importance in the evaluation of the wider economic benefits of transport...

Maré, David C. and Daniel J. Graham. 2009. "Agglomeration Elasticities in New Zealand," Motu Working Paper 09-06.

Trans-Tasman Migration, Transnationalism and Economic Development in Australasia

 This paper focuses on migration between Australia and New Zealand,...

Poot, Jacques. 2009. "Trans-Tasman Migration, Transnationalism and Economic Development in Australasia," Motu Working Paper 09-05.

China’s Energy Situation and Its Implications in the New Millennium

Many are interested in China’s energy situation, however, numerous energy related issues in China still remain unanswered. For example, what are the potential forces driving energy demand and supply? Previous reviews focused only on fossil fuel based energy and ignored other important...

Ma, Hengyun; Les Oxley and John Gibson. 2009. "China's Energy Situation and Its Implications in the New Millennium," Motu Working Paper 09-04.

Testing for Energy Market Integration in China

This paper investigates energy market integration in China by employing univariate, and panel-based unit root tests and Granger causality tests applied to a new energy price data set. We identify price series that converge either to absolute or relative price parity. In...

Ma, Hengyun; Les Oxley and John Gibson.2009. "Testing for Energy Market Integration in China," Motu Working Paper 09-03.

China’s Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution

With its rapid economic growth, China’s primary energy consumption has exceeded domestic energy production since 1994, leading to a substantial expansion in energy imports, particularly of oil. China’s energy demand has an increasingly significant impact on global energy...

Hengyun Ma; Les Oxley; John Gibson and Bongguen Kim. 2009. "China's Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution," Motu Working Paper 09-02.

Who Pays What for Primary Health Care? Patterns and Determinants of the Fees Paid by Patients in a Mixed Public-Private Financing Model

The New Zealand government introduced a Primary Health Care Strategy (PHCS) in 2001 aimed at improving access to primary health care, improving health, and reducing inequalities in health. The Strategy represented a substantive increase in health funding by government and a move from a...

Cumming, Jackie; Steven Stillman and Michelle Poland. 2009."Who Pays What for Primary Health Care? Patterns and Determinants of the Fees Paid by Patients in a Mixed Public-Private Financing Model," Motu Working Paper 09-01.

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