Category Archives: Social Policy

Evidence to the Human Rights Review Tribunal

The case involved a number of parents of disabled adult children who claimed that the Ministry of Health discriminated against them, by not paying them for services for which it would pay outside carer. For more detail see http://www.eastonbh.ac.nz/?p=1396 . My role was a very small one dealing with the costs. Keywords: Health; Social Policy;…
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Incentives Matter: Incentive Design Matters More

Listener: 22 March, 2008. Keywords: Social Policy; Statistics; “Incentives matter” is a routine part of economists’ thinking. Tax a commodity, its price goes up and there is an incentive to reduce consumption. Reduce the tax, the price goes down and the incentive goes the other way. But many real-life circumstances are more complex, and the…
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The Globalisation Of a Welfare State

Chapter 3 of New Zealand, New Welfare, edited by N. Lunt, M. O’Brien & R. Stephens. (Cenage Learning, 2007)   Keywords: Globalisation & Trade; Labour Studies; Social Policy;   In March 1952, just two men were on the Department of Social Security’s unemployment benefit. The rules of entitlement partly determine the numbers, but those registered…
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Mortgage Stress: How Much Has It Risen?

This note was commissioned by the Sunday Star Times (5 August, 2007)   Keywords: Distributional Economics; Macroeconomics & Money; Social Policy;  In the year to June 2004, 3.7% of all households suffered ‘mortgage stress’ defined as having at least 40% of their disposable income being used to service their mortgage. This definition of mortgage stress…
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Research and Destroy

Studies of race relations are sometimes used to bolster prejudice, not reveal the truth.    Listener: 10 February, 2007.     Keywords: Health; Maori; Social Policy;    Don Brash’s January 2004 Orewa speech may have been a key event in New Zealand race relations. The earlier foreshore and seabed decisions had stirred a restlessness about…
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What Does the 2004 Living Standards Report Tell Us?

This was submitted to http://norightturn.blogspot.com/, posted 3 August, 2006.  Keywords: Distributional Economics; Social Policy; Statistics;  The New Zealand Living Standards 2004 report depends entirely upon its “Economic Living Standards Index” (ELSI), first used in the previous (2000) report. At that time I expressed reservations about the index. Many have not been addressed. What I do…
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Is New Zealand the Best Place in the World to Bring Up Children?

Presentation to the Wellington WEA, 25 July 2005.

Keywords: Social Policy;

There is one outstanding fact about New Zealand poverty. Choose any reasonable poverty line, and you will find that over 80 percent of the poor are children and their parents. The figure would be even higher if one included other adults living in households with children. The economic problem of poverty is overwhelming children and the families they live in.

The Caring Tax: Why Do We Rate Minding Sheep Ahead Of Raising Children?

Listener: 21 May, 2005.

Keywords: Regulation & Taxation; Social Policy;

There is no consensus as to whether mothers should or should not go out to paid work and put their young children into childcare. The research says that it depends on family circumstances and the availability of care, together with the culture of the society. The policy conclusion must be that we should leave the decision to the primary carer and her or his family. But if we pursue a strategy of such neutrality, we should ensure that other aspects of public policy do not bias the family decision.

Medical Misadventures: Should Patients Be Compensated for Managerial Failure?

Listener: 26 February, 2005.

Keywords: Health; Social Policy;

An earlier column Accidents Will Happen (April 17, 2004) commended the proposed change in the ACC compensation criteria from medical error (which involves fault) and medical mishap (with a rare and severe outcome) to the situation where unexpected treatment injury occurs. The column worried that the opportunities the new scheme promises for prevention might be overlooked. I gather the ACC is instituting a programme to improve the medical safety cultures of health professionals. Great. As the column concluded, the biggest gains from the reform may be that there will be less medical misadventure.

Lock into Savings

The retirement debate depends on a disagreement between economists.

Listener : 23 October, 2004.

Keywords: Social Policy;

About 30 years ago economics sharpened its theory of behaviour with the assumption that everyone took economic decisions that gave them the best outcome. We might call this the “neoclassical paradigm”. It simplifies analysis enormously, and was used in policy extensively in the 1980s and 90s. In practice, the paradigm recognises that individuals don’t actually maximise, but it assumes that people are always taking actions that move them closer to the optimum, so the assumption of best outcomes is near enough to be true.

Economics for the Children

Paper for the AGM of the Auckland Child Poverty Action Group, 19 July, 2004

Keywords: Social Policy;

The government has at last attempted to address child poverty. And not a year too soon, for 2004 is also the 30th anniversary of the major research paper, Poverty in New Zealand which pointed out that poverty was mainly in households with children. That one main fact about poverty in New Zealand, often gets lost behind a myriad of minor facts. The consequence is that attempts to reduce poverty are at best inefficient, and at worst ineffective. That primary fact is that a substantial majority of the poor are children and their parents and we need to target on their needs.

Accidents Will Happen

The ACC reforms for treatment injury should replace a culture of blame with a culture of safety.

Listener: 17 April, 2004.

Keywords: Social Policy;

A friend recovering from a serious operation was on two occasions offered medicine that was not prescribed and, once, a scan that was unnecessary. Suppose she had been unconscious, or lacked the character to know what was going on and say “no”. Whether the mistakes could have led to medical injury, I cannot tell. But they would have consumed scarce resources.

Public Policy and the Maori

The following is a transcript of an interview by Carol Archie for Mana News broadcast on “Radio New Zealand”, 6.25am Tuesday 10 February 2004. It has been lightly edited.(“Hansard” rules – for presentation, syntax, and sense – but not for content).

Keywords: Maori; Social Policy;

Presenter (Dale Husband): This morning our focus is economics and how the National Party’s new policy around Maori services stacks up in the world of finance. One economist, Brian Easton, disagrees with Don Brash’s contention that resources should be based purely on need and never targeted specifically for Maori as a race. Brian Easton told Carol Archie that targeting particular groups often makes good economic sense.

Ending Fault in Accident Compensation:

Issues and Lessons from Medical Misadventure
Paper to The Future of Accident Compensation: New Directions and Visions, Faculty of Law, Victoria University of Wellington, 5-6 December, 2003.

Keywords: Social Policy;

Introduction: The Woodhouse Vision

There seems to be common agreement that the treatment of medical misadventure should conform to the Woodhouse Principles and therefore there should be no notion of fault in its coverage. I shall not to labour this point, but it is worthwhile to remind ourselves of the Principles and how the 1966 Commission rejected fault as relevant. Their primary principles were

Submission on review Of Medical Misadventure

Keywords: Social Policy;

Executive Summary

1. That the ‘Woodhouse Principles’ be applied to assessing the options on the treatment of medical misadventure. (Section 1)

2. The fault principle which underpins medical error conflicts with the Woodhouse Principles, the Ottawa Charter and the Ministry of Health’s guidelines to reportable events, particularly in regard to prevention. (Section 2)

3. On the available information Option 3 (Unintended injury in the treatment process) is the choice which most closely fulfils these principles. (Section 3)

4. However, the consultation document does not pay sufficient attention to the prevention possibilities of the scheme, nor to the administration costs issues. Some suggestions for improvement are discussed. (Section 4)

5. The ACC should be charged with a vigorous program to reduce medical misadventure. (Section 5)

6. While the medical misadventure is currently funded as a part of the non-earners scheme, it is suggested that an ‘insurance’ levy on health professionals as a part of their ACC levy would be more appropriate. The introduction of such a levy, plus the gains from a vigorous prevention program and a reduction in compliance costs would mean that the application of option three would not add a burden to the public purse. (Section 6)

Treat the Kids: Why Michael Cullen Should Blow a Bit Of the Budget Surplus.

Listener 17 May, 2003.

Keywords: Macroeconomics & Money; Social Policy;

One of the political oddities is how American conservatives are keen to blow the US budget surplus, creating an enormous deficit which will substantially adding to the US government’s debt. Under Ronald Reagan the justification was the merits of tax cuts, and the belief the deficit would force the US Congress to cut spending. It didn’t. Under George W. Bush the justification is the merit of tax cuts and need to support a sluggish economy, even though the cuts are poorly designed for macroeconomic stimulus. The commonality is the cutting of the burden of taxation on the rich, in effect switching the burden to future generations.