Targeting social expenditure in New Zealand. An evaluation of the current policy regime

This paper provides a brief account a flow social expenditure in New Zealan d has been targeted (i.e, means-tested) since the late nineteenth century, outlines the policy framework at the dawn of the new millennium, and assess es the strengths and weaknesses of the current targeting regime. It is argu ed that Be existing policy settings are open to challenge on a number of co unts. In particular, they are complex inconsistent and relatively intrusive , they impose significant administrative and compliance costs, and they gen erate considerable incentive problems. Nor has the greater reliance on targ eting since the mid-1980s prevented an increase in relative poverty and ine quality. Given this situation, the paper outlines some possible reforms.