Issue 13 January 2004
In this issue are the following articles:
Out to pasture Pastoral leases in the 21st century
The burgeoning local and international demand for New Zealand land is focusing attention on the potential conflicts arising from alternative uses of land - and on the optimal regimes for the use and management of these lands. ISCR's Lew Evans and Neil Quigley think it's time to pay more attention to covenants as a socially optimal way of providing for the multiple uses of land.
A far-from-random walk to Nobel glory
On December 10th Welshman Clive W J Granger received the 2003 Nobel Prize for Economics (with Robert F. Engle). Kevin Counsell and Steen Videbeck explain the rebellious thinking of this down-to-earth economic professor.
Authors:
Kevin Counsell, Steen Videbeck
Calculating the cost of capital A Revisionist's Appraisal
In determining the viability of any business investment, one of the most crucial factors is the cost of capital used. Financial economists long ago devoted considerable time and energy to identifying the cost of capital, a process that resulted in a 30 year consensus. That consensus is now beginning to fall apart. Glenn Boyle, Professor of Finance at Otago University, explains why.
Cost-benefit analysis in competition law
In a range of prominent cases, the Commerce Commission has evaluated the benefits and costs that certain of its actions would have for the New Zealand public. These evaluations are important to many decisions the Commission makes; so it's crucial for economic investment and growth that the cost-benefit analysis be done properly. Lewis Evans, ISCR Executive Director, explains why domestic and foreign firms should generally be treated the same in the Commission's cost-benefit analysis.
Skill and stamina win the growth race at the OECD stadium
In terms of economic growth, the period from 1992 to 2002 is exceptional for New Zealand. It is the longest period since the 1960s in which New Zealand's average per-capita GDP growth matched the pace of the total OECD's per -capita GDP growth. The Treasury's Bob Buckle and Nathan McLellan began their examination of this phenomenon in the August issue of Competition and Regulation Times. Now they pick up the pace.
Authors:
Robert A. Buckle , Nathan McLellan
Genetically modified liability
Now that the moratorium on genetically modified organisms (GMOs) has expired, the focus is shifting to risk management and to institutional systems - such as a liability regime - that can help manage GMO risks appropriately. Stephen Hutton notes that, under current law, GMOs will generally be governed by a negligence regime. And he asks: is this the best system?
Author:
Stephen Hutton
