New Zealand’s new housing policy is really just a new tax package — and it’s a shambles

By Norman Gemmell, Chair in Public Finance, Te Herenga Waka — Victoria University of Wellington

Economists like to talk about “optimal policy instruments” — essentially, policies that achieve their objectives more effectively or efficiently than the alternatives, and have minimal unintended consequences.

Judged by those criteria, the New Zealand government’s recently announced package of housing policy instruments is a long way from optimal. You might even call it a shambles.

How so? To the uninformed,…

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