Recently I’ve been talking a bundle about inequality in incomes, and fitting it within an idea of “equity”. However, as we’ve chatted about, policy choices often involve conceptualising an equity vs efficiency trade-off. A fundamental part of how we understand where we are in relation to this trade-off, especially with reference to “efficiency”, comes from thinking about productivity.
With this in mind, the Productivity Commission has been thinking about New Zealand’s productivity performance. And given that along many characteristics New Zealand and Australia are similar they have decided that looking into the productivity gap between these countries helps us to understand this issue. This led them to release a working paper titled “Investigating New Zealand-Australia productivity differences: New comparisons at industry level” on their main site (links can be found here).