Abstract
This paper uses data from the Survey of Family, Income and Employment to estimate saving by the household sector in New Zealand during 2004–2006. Even our most conservative estimate is that at least 14% of gross income was saved during this period. By contrast, the indirectly derived Household Income and Outlay Accounts indicate (net) household saving was −12.5% per year over the same period. We also find no evidence that capital gains in housing during this time period crowded out saving or that the composition of household wealth in New Zealand differed from that in other developed countries.