James Tremewan

The Ups and Downs of New Zealand House Prices

This paper identifies the expansion and contraction phases of New Zealands national and regional house prices, by employing techniques typically used to study cycles in real activity, the so-called Classical cycle dating method. We then enquire into the nature of the cycles, addressing five questions: (1) What are the New Zealand and regional house price cycles, and do the regional cycles differ from the national cycle?; (2) What are the typical durations, magnitudes and shapes of these house price cycles?; (3) Do cycles in house prices match cycles in economic activity, at either national or regional levels?; (4) Does it matter which of the two main sets of house price series are used? i.e. Quotable Value New Zealand (QVNZ) or Real Estate Institute of New Zealand (REINZ)?; and (5) Does the sample period matter? Findings are evaluated in the context of work by Grimes, Aitken and Kerr (2004), and Hall and McDermott (2005). Avenues for further research are suggested.

Let the Punishment Fit the Criminal: An Experimental Study

We use a laboratory experiment to study the extent to which people tailor levels of punishment to the subjective experience of the person to receive that punishment, for both monetary and non-monetary sanctions. We find that subjects tend to apply higher fines to wealthier individuals. Additionally, subjects assign more repetitions of a tedious task to those with a lower willingness-to-pay to avoid it. We find no evidence that the distributions of monetary and non-monetary punishments are different when considered as proportions of the maximum possible punishment, but that this does not hold when non-monetary punishments are converted into monetary equivalents. This suggests that subjects do not have in mind a particular level of disutility from the punishment, but rather are guided by the sentencing possibilities.