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Competition is a transformative force and is responsible for shaping everything from biology to the economy. Governments have set up institutional bodies to foster and encourage it. Read more
Imagine a business that could charge anyone who just happened to pass by its shop window. Does that sound like a business that would strive to become better, more customer-friendly, and more service-oriented? Read more
In a week where the headlines were dominated by housing affordability concerns, Prime Minister John Key said central government would need a compelling reason to allow local councils to collect additional taxes on top of their standard rates revenue. Well, here are 415,000 reasons. Read more
One of the principal arguments put forward for the development of Auckland into an international-sized city is that urban economies of scale generate better outcomes. This is called an agglomeration benefit, or rather the economic advantage that firms and people get from being situated closer to markets, suppliers and places of work. Read more
In Greek mythology the Hydra was a deadly water serpent with multiple heads. For each head that was cut off, two others sprang out to replace it. Read more
Economists can agree about many things. The importance of tradable property rights in scarce fresh water is a case in point. Read more
Two years ago, when the New Zealand Business Roundtable merged with the New Zealand Institute to form The New Zealand Initiative, there were a fair share of people who wondered how these organisations would merge. Both were research organisations that had been headed by well-respected economists, the late Roger Kerr and David Skilling, who were perceived to come from opposite sides of the ideological spectrum. Read more
The Wellington City Council this week started holding community meetings over plans to introduce cycle lanes across large parts of Wellington, with the aim of making cycling safer. The move has been backed by an editorial from Green Party MP Julie Anne Genter, an adviser to Mayor Celia Wade Brown, who claims bike-only lanes could lift the percentage of people cycling from about 2.6 per cent in 2006 to 7 per cent – on par with Portland Oregon. Read more
As we discussed in a previous issue of Insights, New Zealand is rated as one of the most congested countries in the world, according to the figures in the latest Tom Tom Traffic Index. The Amsterdam-based navigation company’s data shows that despite very small urban areas and a low population base, travelling in Auckland, Wellington, and Christchurch takes 31.3 per cent longer than it should, based on the optimal carrying capacity of the roading infrastructure. Read more
In the for-and-against debate surrounding compact cities and their impact on housing affordability, Auckland and its Unitary Plan stand out as an oddity. The compact city term lacks a clear definition, but if you look for commonalities across the literature and practical examples of this urban form, two policy outcomes repeat themselves: urban growth restrictions and higher population densities. Read more