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International Monetary Fund. Asia and Pacific Dept
This paper discusses prospects for potential growth, house prices, household debt, and financial stability risks, and tax policy reforms in New Zealand. Despite having world-class institutions and strong policy framework, income levels remain low relative to other Organisation for Economic Co-operation and Development (OECD) countries. During 1980–2014, per capita income levels have remained about 20 percent below the OECD's average income. Longstanding structural issues need to be addressed to boost potential growth. House prices and household debt have increased rapidly in New Zealand over the past two decades. New Zealand's low national saving rate is a source of vulnerability and likely contributes to the relatively high interest rates needed to attract foreign capital.
International Monetary Fund. Asia and Pacific Dept
This Selected Issues paper analyzes the housing prices in Australia. Housing prices in Australia have increased strongly over the past two decades, including by comparison internationally. Thus housing prices are often argued to be overvalued. Many counter-arguments have been put forward for why such measures are flawed. This paper argues that housing prices are moderately stronger than consistent with current economic fundamentals, but less than a comparison to historical or international averages would suggest. International comparisons of price-to-income ratios suggest that Australia is broadly in line with comparator countries, although significant data comparability issues make inference difficult.
International Monetary Fund

price of an equivalent consumer durable for the same period of time; the user cost approach . In this approach, the initial purchase cost of the durable is decomposed into two parts: one part which reflects an estimated cost of using the services of the durable for the period, and another part which is regarded as an investment that must earn some exogenous rate of return. These three approaches will be discussed more fully in the following three sections. 23.4 The above three approaches to the treatment of durable purchases can be applied to the

Statistical Office of the European Communities, International Labour Office, International Monetary Fund, Organization for Economic Co-operation and Development, United Nations, and World Bank

could be rented. ( 10 ) The user cost approach . In this approach, the financial opportunity cost of owning the house and using its services during the reference period is calculated. Since the CPI Manual (2004) was written, a fifh concept for pricing the services of OOH has been suggested: ( 11 ) The opportunity cost approach . In this approach, the price for the services of an owned dwelling unit is set equal to the maximum of its rental equivalence and user cost prices. 3.16 The conceptual differences between these approaches should be

International Monetary Fund. Asia and Pacific Dept

fundamentals. User cost approach . Another method to assess house prices is to apply the concept of user cost of housing. The user cost approach compares the relative costs of owning a home versus renting it by adding up the discounted costs of each alternative over the period for which a house is expected to be owned (see Appendix 2 for details). User costs are affected by a range of factors, including the direct cost of owning a home such as the real interest rate (after tax deductions), operating and maintenance costs, property taxes. The cost of owning a home is also

International Monetary Fund. Asia and Pacific Dept

text chart). 2 User cost approach . Another method to assess house prices is to apply the concept of user cost of housing. The user cost approach compares the relative costs of owning a home versus renting it by adding up the discounted costs of each alternative over the period for which a house is expected to be owned (see Appendix 2 for details). User costs are affected by a range of factors, including the direct cost of owning a home such as the real interest rate (after tax deductions), operating and maintenance costs, property taxes. The cost of owning a

International Monetary Fund

Manual . 2.2 Scope 2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices. The scope of the CPI expenditure concepts coincide with household final consumption expenditures in the national accounts for all categories of goods and services (including goods and services employers provide as in-kind compensation). The SSC approach to owner occupied housing can be characterized as a partial user cost approach to imputed rentals and thus imputed rentals are in scope for the Azerbaijan CPI. 2

International Monetary Fund

. During this year a user advisory group will be re-established, to discuss all major problems and changes in macroeconomic calculations. A working plan for this advisory group will be elaborated by all institutions involved. 2. Progressively improve measurement of consumption of fixed capital (using the perpetual inventory model) and dwelling services (adopting the user cost approach). Consumption of fixed capital in the General Government sector as well as the imputed rent of owner-occupied dwellings has been recalculated and the new results are included in