Ashley Dunstan | Reserve Bank of New Zealand (original) (raw)

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Papers by Ashley Dunstan

Research paper thumbnail of Analysing wage and price dynamics in New Zealand

This paper examines the relationship between wages and consumer prices in New Zealand over the la... more This paper examines the relationship between wages and consumer prices in New Zealand over the last 15 years. Reflecting the open nature of the New Zealand economy, the headline CPI is disaggregated into non-tradable and tradable prices. We find that there is a joint causality between wages and disaggregate inflation. An increase in wage inflation forecasts an increase in non-tradable

Research paper thumbnail of In search of greener pastures - improving the REINZ farm price index

Research paper thumbnail of The evolution of the Forecasting and Policy System (FPS) at the Reserve Bank of New Zealand

The Forecasting and Policy System model (FPS) has been a very useful tool for forecasting and com... more The Forecasting and Policy System model (FPS) has been a very useful tool for forecasting and communication at the Reserve Bank of New Zealand. In part, its success has been due to pragmatic use, and the evolution of the model to reflect changing views of the New ...

Research paper thumbnail of The impact of fiscal policy on the business cycle

The spending and taxation plans of the government are often collectively described as fiscal poli... more The spending and taxation plans of the government are often collectively described as fiscal policy. Fiscal policy is generally shaped by factors other than stabilising the business cycle–the government's main focus is to take in tax revenue to pay for services like hospitals and ...

Research paper thumbnail of Time-Varying Returns, Intertemporal Substitution and Cyclical Variation in Consumption

Abstract: This paper studies the importance of intertemporal substitution in consumption for the ... more Abstract: This paper studies the importance of intertemporal substitution in consumption for the cyclical co-movement of consumption, net worth and income. We can largely explain the empirical hump-shaped consumption response to a transitory wealth increase by allowing ...

Research paper thumbnail of Time-Varying Returns, Intertemporal Substitution and Cyclical Variation in Consumption

This paper studies the importance of intertemporal substitution in consumption for the cyclical c... more This paper studies the importance of intertemporal substitution in consumption for the cyclical co-movement of consumption, net worth and income. We can largely explain the empirical hump-shaped consumption response to a transitory wealth increase by allowing for time-varying returns in an otherwise standard Permanent Income Hypothesis (PIH) model. At the net worth peak, households bring consumption forward in anticipation of low returns on saving. The PIH model fully explains the empirical response when households initially expect the net worth shock to be permanent, but gradually learn that it is in fact transitory.

Research paper thumbnail of How do Housing Wealth, Financial Wealth and Consumption Interact? Evidence from New Zealand

... Emmanuel De Veirman Ashley Dunstan (Reserve Bank of New Zealand ... Note that these files are... more ... Emmanuel De Veirman Ashley Dunstan (Reserve Bank of New Zealand ... Note that these files are not on the IDEAS site. ... formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF Length: 35 p. Date of creation: Feb 2008 ...

Research paper thumbnail of Debt dynamics and excess sensitivity of consumption to transitory wealth changes

We analyse the consumption-wealth relationship using a framework that accounts for transitory var... more We analyse the consumption-wealth relationship using a framework that accounts for transitory variation in wealth, and in a setting where transitory variation in household net worth is not dominated by boom and bust cycles in stock markets. We find that transitory ...

Research paper thumbnail of Time-varying returns, intertemporal substitution and cyclical variation in consumption

Abstract: This paper studies the importance of intertemporal substitution in consumption for the ... more Abstract: This paper studies the importance of intertemporal substitution in consumption for the cyclical co-movement of consumption, net worth and income. We can largely explain the empirical hump-shaped consumption response to a transitory wealth increase by allowing ...

Research paper thumbnail of Analysing wage and price dynamics in New Zealand

This paper examines the relationship between wages and consumer prices in New Zealand over the la... more This paper examines the relationship between wages and consumer prices in New Zealand over the last 15 years. Reflecting the open nature of the New Zealand economy, the headline CPI is disaggregated into non-tradable and tradable prices. We find that there is a joint causality between wages and disaggregate inflation. An increase in wage inflation forecasts an increase in non-tradable

Research paper thumbnail of In search of greener pastures - improving the REINZ farm price index

Research paper thumbnail of The evolution of the Forecasting and Policy System (FPS) at the Reserve Bank of New Zealand

The Forecasting and Policy System model (FPS) has been a very useful tool for forecasting and com... more The Forecasting and Policy System model (FPS) has been a very useful tool for forecasting and communication at the Reserve Bank of New Zealand. In part, its success has been due to pragmatic use, and the evolution of the model to reflect changing views of the New ...

Research paper thumbnail of The impact of fiscal policy on the business cycle

The spending and taxation plans of the government are often collectively described as fiscal poli... more The spending and taxation plans of the government are often collectively described as fiscal policy. Fiscal policy is generally shaped by factors other than stabilising the business cycle–the government's main focus is to take in tax revenue to pay for services like hospitals and ...

Research paper thumbnail of Time-Varying Returns, Intertemporal Substitution and Cyclical Variation in Consumption

Abstract: This paper studies the importance of intertemporal substitution in consumption for the ... more Abstract: This paper studies the importance of intertemporal substitution in consumption for the cyclical co-movement of consumption, net worth and income. We can largely explain the empirical hump-shaped consumption response to a transitory wealth increase by allowing ...

Research paper thumbnail of Time-Varying Returns, Intertemporal Substitution and Cyclical Variation in Consumption

This paper studies the importance of intertemporal substitution in consumption for the cyclical c... more This paper studies the importance of intertemporal substitution in consumption for the cyclical co-movement of consumption, net worth and income. We can largely explain the empirical hump-shaped consumption response to a transitory wealth increase by allowing for time-varying returns in an otherwise standard Permanent Income Hypothesis (PIH) model. At the net worth peak, households bring consumption forward in anticipation of low returns on saving. The PIH model fully explains the empirical response when households initially expect the net worth shock to be permanent, but gradually learn that it is in fact transitory.

Research paper thumbnail of How do Housing Wealth, Financial Wealth and Consumption Interact? Evidence from New Zealand

... Emmanuel De Veirman Ashley Dunstan (Reserve Bank of New Zealand ... Note that these files are... more ... Emmanuel De Veirman Ashley Dunstan (Reserve Bank of New Zealand ... Note that these files are not on the IDEAS site. ... formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF Length: 35 p. Date of creation: Feb 2008 ...

Research paper thumbnail of Debt dynamics and excess sensitivity of consumption to transitory wealth changes

We analyse the consumption-wealth relationship using a framework that accounts for transitory var... more We analyse the consumption-wealth relationship using a framework that accounts for transitory variation in wealth, and in a setting where transitory variation in household net worth is not dominated by boom and bust cycles in stock markets. We find that transitory ...

Research paper thumbnail of Time-varying returns, intertemporal substitution and cyclical variation in consumption

Abstract: This paper studies the importance of intertemporal substitution in consumption for the ... more Abstract: This paper studies the importance of intertemporal substitution in consumption for the cyclical co-movement of consumption, net worth and income. We can largely explain the empirical hump-shaped consumption response to a transitory wealth increase by allowing ...

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