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Measuring Saving Rates in New Zealand: An Update

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Abstract

This paper reviews the flow approach (income less consumption) to measuring saving and the associated trends in sectoral saving rates for New Zealand, as derived from the national accounts. It also presents estimates for the household sector, of the stock measure of savings (changes in net wealth). The latter estimates are found to be consistently greater than the flow measures of household savings. Finally a series of adjustments are made to the flow measures of household and national saving rates. These include adjustment to the boundary between consumption and investment, the impact of inflation and the role of the New Zealand Superannuation Fund. As a result the adjusted measure of net national saving is found, on average to be some 10 percentage points of GDP higher than the raw measure. The associated estimate of the level of adjusted net foreign liabilities is on average 2 percent of GDP lower than the raw data. bilateral exchange rate movements.

Suggested Citation

  • Emma Gorman & Grant M Scobie & Yongjoon Paek, 2013. "Measuring Saving Rates in New Zealand: An Update," Treasury Working Paper Series 13/04, New Zealand Treasury.
    • Handle: RePEc:nzt:nztwps:13/04
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    File URL: https://treasury.govt.nz/sites/default/files/2013-02/twp13-04.pdf
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    References listed on IDEAS

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    15. John Gibson & Trinh Le & Grant Scobie, 2004. "Women’s Retirement Incomes in New Zealand: A Household Bargaining Approach," Treasury Working Paper Series 04/22, New Zealand Treasury.
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    17. repec:bla:revinw:v:45:y:1999:i:4:p:435-53 is not listed on IDEAS
    18. Grant Scobie & Trinh Le & John Gibson, 2007. "Housing in the Household Portfolio and Implications for Retirement Saving: Some Initial Finding from SOFIE," Treasury Working Paper Series 07/04, New Zealand Treasury.
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    20. David Law & Lisa Meehan & Grant M Scobie, 2011. "KiwiSaver: An Initial Evaluation of the Impact on Retirement Saving," Treasury Working Paper Series 11/04, New Zealand Treasury.
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    Cited by:

    1. Anna Orthofer, 2017. "Concepts and Measures of Saving: Selected Issues for South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 85(2), pages 222-241, June.
    2. Talosaga Talosaga & Mark Vink, 2014. "The Effect of Public Pension Eligibility Age on Household Saving: Evidence from a New Zealand Natural Experiment," Treasury Working Paper Series 14/21, New Zealand Treasury.
    3. Mark Vink, 2014. "Intergenerational Developments in Household Saving Behaviour," Treasury Working Paper Series 14/23, New Zealand Treasury.
    4. Anne-Marie Brook, 2014. "Options to Narrow New Zealand’s Saving – Investment Imbalance," Treasury Working Paper Series 14/17, New Zealand Treasury.

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    More about this item

    Keywords

    Savings; measurement; New Zealand;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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