Issue 15 December 2004
In this issue are the follwoing articles:
ICTelligence?
Information and communication technologies (ICT's) are becoming increasingly common in New Zealand, with this country being well ahead of others in its enthusiastic use of these technologies. But simply investing in ICT alone may not be as 'intelligent' as it first seems. ISCR's Bronwyn Howell points out some cogent lessons for both businesses and policymakers.
It's going to cost how much?
While many people think of unexpected visits to the dentist and the panelbeater as expensive, the costs of investing in a superannuation fund can be far greater over a lifetime. Richard Frogley investigates the fees charged by managers of superannuation funds- and finds they can add up to quite a lot.
Physician reveal thyself
New Zealand and the United States are the only countries that allow advertising of prescription drugs directly to consumers (DTCA) and this policy is now coming under close scrutiny as policymakers look to ban such advertising. But direct-to-doctor (DTD) advertising, which is extensive and occurs in all countries, is treated with indifference by regulators. Rhema Viathianathan from Auckland University's Economics Department says we should pay much more attention to the potential harm of a DTD to mislead patients.
Strange goings-on...in the New Zealand stockmarket...or not?
Are stock prices primarily determined by hard-headed and rationally calculating automatons, or are they instead the result of emotive and irrational tendencies and beliefs? Before about 1960, it would have been difficult to find anybody who believed in the former and, while most practitioners never retreated from this position, theoretical and empirical research resulted in the consensus academic view doing a 180 degree turn. In the last few years, however, so-called behavioural considerations have prompted an academic re-think. Glenn Boyle surveys the history of this debate and reports some recent New Zealand-based research.
The added value of water storage
Water resources in New Zealand and worldwide are becoming increasingly scarce - and with this comes a growing awareness that water, like any scarce resource, has value in its alternative uses. When water is an input into a production process, its value can be determined through the price of the commodity that's produced. But, as Kevin Counsell points out, the ability to store water may add an extra premium to its value.
Compliance costs: perception versus reality
There's a widespread belief that compliance costs impose a significant burden on New Zealand businesses - especially small businesses - and even the government now recognises compliance costs as a serious constraint on entrepreneurship and economic growth. A study by Business New Zealand in 2003 concluded that firms employing 0 - 5 workers spend 313 minutes a week on compliance. Perception? or reality? A recent study from Otago University has taken another look at the compliance burden, as Stephen Knowles explains.
Independence and incentives at NZX discipline
The recent Access Brokerage default highlighted some potential conflicts arising from the multiple roles that the demutualised and privately owned New Zealand Exchange (NZX) has as marketplace owner and operator, regulatory monitor and enforcer, and listed company. Drawing on work earlier this year by Veena Mishra, Lisa Ryan takes another look at these conflicts.