Utopia, you are standing in it!

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Originally posted on The Growth Economics Blog:
Last post on the NBER growth session. Chang-Tai Hsieh (Chicago) and Enrico Moretti (Berkeley) presented a paper on wage dispersion across cities in the U.S. Wage dispersion (New Yorkers earn more than people in Cleveland) either represents compensation for living costs (housing in New York is more expensive…

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Figure 1: Real GDP per New Zealander and Australian aged 15-64, converted to 2013 price level with updated 2005 EKS purchasing power parities, 1956-2013, $US Source: Computed from OECD Stat Extract and The Conference Board, Total Database, January 2014, http://www.conference-board.org/economics Figure 1 shows that New Zealand lost two decades of growth between 1974 and 1992 …

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The median national population size is not much more than New Zealand’s current population. Controlling for location, Easterly and Kraay (2002) found that smaller states were richer than other states in per capita real GDP. Rose (2006) reviewed the impact of size on the level of income, inflation, material well-being, health, education, and the quality …

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Distance is common in many discussions of the relative growth performance of New Zealand. New Zealand is said to be small and remote and poorer for it. The figure below from a Productivity Commission report is an example. The Productivity Commission put it this way: New Zealand firms face reduced access to large markets and …

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