School of Economics and Finance · accommodate the redesigned BCA degree, semesterisation of third year economics papers and the design of new papers to accommodate the Faculty development

School ofEconomics andFinance

Annual Report 2000

2 Annual Report 2000

School of Economics and FinanceAnnual Report

2000Contents PageFrom the Head of School .............................................................................................. 3Staff and Research Interests

Staff ...................................................................................................................... 5Research Interests ................................................................................................. 7

Research ActivitiesPublications ........................................................................................................ 16External Seminar and Conference Presentations ............................................... 22VUW Economics and Finance Seminar Series .................................................. 26Visitors................................................................................................................ 28

TeachingUndergraduate Teaching..................................................................................... 29Graduate Teaching .............................................................................................. 30Other Courses ..................................................................................................... 31Theses ................................................................................................................. 32Outstanding Students ......................................................................................... 34

Other Professional Activities...................................................................................... 35Master of Applied Finance .........................................................................................38New Zealand Institute for the Study of Competition and Regulation........................39

Postal Address: School of Economics and Finance, PO Box 600, WellingtonTelephone: (04) 463 5354 Fax: (04) 463 5014

Website: http://www.sef.fca.vuw.ac.nz

Annual Report 2000 3

From the Head of SchoolThe year 2000 was marked by significant teaching developments in our undergraduate and graduate programmesand sustained high quality research output by School of Economics and Finance staff, achieved against abackdrop of intensified staff recruitment and retention difficulties. The intensified staffing situation was theconsequence of strong international demand for skilled and experienced economists, econometricians and financestaff emerging at a time of insufficient financial flexibility on the part of the University to adequately match theinternational market. These circumstances will pose a significant management challenge for the Universityand the School over the next few years if the School is to maintain an eminent position as a centre for learningand research in economics and finance.The teaching developments that took effect in 2000 included restructuring first year economics papers toaccommodate the redesigned BCA degree, semesterisation of third year economics papers and the design ofnew papers to accommodate the Faculty development of an international business programme. These changeswere the culmination of consultation and design work on the part of School staff during the latter part of 1999and the early months of 2000. New marketing initiatives included the publication of the first Career View foreconomics (www.vuw.ac.nz/st_services/careers/cview.html), Sef Handbook and a new SEF Web page(www.sef.fca.vuw.ac.nz). Student enrolments and feedback have to date been very encouraging and the Schoolhas experienced a resurgence of enrolments in the core second and third year economics papers. The Master ofApplied Finance programme, introduced for the first time in 1999, continued to build on a successful first yearby introducing two new papers and accommodating significant enrolment growth.The School maintained an impressive range of research publications, conference participation and professionalcontributions. Research output included 21 articles in refereed journals, 4 books and 9 book chapters, 9 reviewarticles, 12 research monographs, 2 issues of Victoria Economic Commentaries and 1 VEC Monograph issue.The School was again well represented at professional meetings and conferences with staff contributing 52presentations at local and overseas conferences and seminars. The School hosted and had a significant role inorganising three special purpose meetings: a symposium on �New Perspectives on International Migration� on1st February, in cooperation with the Department of Labour, The Treasury and the Ministry of Education; aFinance colloquium on 7th April; and the 6th New Zealand Econometrics Study Group Meeting on 3rd and 4thMarch. A weekly economics and finance seminar series was run by the School throughout the year and manystaff were significantly involved with public policy organisations, various professional bodies, and held editorialand refereeing positions for professional journals.A steady stream of international visitors provided staff and other Wellington based economists with theopportunity for further exposure to international research and refreshing interaction with active internationalresearchers. Visitors during 2000 included Professors Peter Schmidt and Christine Amsler (Michigan StateUniversity, USA), Professor David Giles (University of Victoria, Canada), Professor Clive Granger (UC SanDiego, USA), Professor Argia Sbordone (Rutgers University, USA), Professor George Borjas (Harvard University,USA) and Professor Michael Greenwood (University of Colorado, USA). During June, Professor MichaelWoodford (Harold H Helm �20 Professor of Economics and Banking Princeton University, USA) was hostedby the School as the 6th VUW Foundation/RBNZ Professorial Fellow in Monetary Economics.Staff recruitment and retention proved to be the most difficult challenge facing the School in 2000. We weredisappointed to lose so many staff who�d made significant teaching and research contributions during the1990s. These included: Dr Young Sik Kim (to Kyung Hee University, South Korea), Dr Benoit Julien (toUniversity of Miami, USA), Dr Margaret Walls (to Resources for the Future, USA), Dr Shuntian Yao (to


Nanyang Technological University of Singapore), Dr John Haywood (to the School of Mathematical andComputing Sciences, VUW), and Dr Yue Yu completed his tenure.The outstanding career of Emeritus Professor Brian Philpott came to a close in 2000. Brian died on July 18th.Some of his most notable appointments during his outstanding career included Foundation Professor ofAgricultural Economics at Lincoln College during the 1960s and Macarthy Professor of Economics at VictoriaUniversity from 1970 to 1986. He was a co-founder in the late 1950s of Business and Economic Research Ltd(BERL), a member of the New Zealand Association of Economists, and a mentor and inspiration to numerousyounger economists. In recognition of his outstanding contributions to research, education and public policythroughout the second half of the 20th Century, Brian was the first economist elected a Fellow of the RoyalSociety of New Zealand and this year he was awarded the Companion of the New Zealand Order of Merit.Brian�s enthusiasm and commitment to rigorous economics and public policy based on sound empirical researchwill remain an outstanding example and inspiration for younger economists.

Robert A. BuckleHeadSchool of Economics and FinanceDecember, 2000


Staff and Research Interests

This section of the report lists staff, identifies their researchinterests, and provides a short selection of their most highlyregarded published research. A wide range of theoreticaland applied research is undertaken, and published in refereedjournals, books, monographs and government reports.

Head of SchoolAssociate Professor Robert A. Buckle, BCom (Acc) MCom (Hons, Econ) AuckProfessorsRoger J. Bowden, BA BSc MA Auck PhD Manchester, National Bank of New Zealand Chair in FinanceLewis T. Evans, MAgrSc (Hons) Linc, MA MS PhD Wisc, Chair of Economics (on leave as Director,

NZISCR)Viv B. Hall, MCom (Hons) PhD Auck, Macarthy Chair of EconomicsGary R. Hawke, BA (Hons) BCom VUW, DPhil Oxon, Chair of Economic HistoryAndrew A. Weiss, BEc (Hons) PhD Syd, Chair of EconometricsAssociate Professors/ReadersGordon Boyce, BA (Hons) Brock, MA Keele, PhD LSEJacek B. Krawczyk, MSc PhD WarsawH. Jacques Poot, Drs Amst, PhD VUWMargaret Walls, BSc Kentucky, PhD UCSBSenior LecturersI. Geoffrey Bertram, BA (Hons) VUW, MPhil, DPhil OxonStephen J. Burnell, MCA VUW, MPhil PhD CambColin E. Jeffcoat, BA MSc Auck, PhD N Carolina, BA (Hons) VUWStephen P. Keef, BSc (Hons) Leic, MBA PhD AstonMohammed Khaled, BA Dacca, MSc (Hons) Islam, MA (Econ) Essex, PhD Br ColKunhong Kim, MS (Econ) PhD Carnegie-MellonMartin T. Lally, BCA (Hons) PhD VUWJerry Mushin, BSc (Hons) LondLeigh Roberts, BSc (Hons) Melb, MSc Tas, MSc Lond , AIAAJohn Singleton, BA PhD Lanc, BD Edin, MSc LondPaul Tompkinson, BA (Hons) Leic, Dip Economics and Econometrics MSc SouthamptonShuntian Yao, MA Zhangshun, PhD UCLAJie Zhang, BA Sichuan, MBA Nankai, MA PhD Western Ontario


LecturersJudy G. Bethwaite, MA (Hons) Cant, DipTchg (Hons) Dip Health Econ (Hons) Tromso (Part-time)Paul E. Calcott, MSS Dip Econ Waikato, MCom Cant, PhD UCLAJohn Haywood, BSc (Hons) PhD LancasterLeslie Hull, BA UCSD, MA Fullerton, PhD UCSBBenoît Julien, BA Laval/Queen�s, MA PhD Western OntarioYue Yu, MS Shanghai, BS Fudan, PhD IowaTeaching Fellow and 100-level ECON and QUAN Courses AdministratorPenelope Proffitt, BSc CantAdministration AssistantsSue O�DonnellAlice FongSuzanne FreearAdjunct ProfessorsLeslie Young, MSc (Hons) VUW, DPhil Oxon, Professor of Finance, Chinese University of Hong

KongMichael Trebilcock, LLB Cant, LLM Adelaide, Professor of Law, University of Toronto (Adjunct

Professor of Law and Economics)Emeritus ProfessorsBryan P. Philpott, MCom NZ, MA Leeds, ACA, FRS NZ; Director, Research Project on Economic

Planning.L. Fraser Jackson, MA NZ, FSSExternal Contributing Lecturers to SEF ProgrammesDr Arthur Grimes, Institute of Policy Studies, VUWSimon McArley, KPMGPeter McKenzie, QCDr James Palmer, Law Faculty, VUWJohn Randal, School of Economics and Finance, VUWDr Peter Thomson, Statistics Research Associates Ltd.


Geoff BertramEnergy and environmental economics,deregulation of natural monopoly,employment, economic growth anddevelopment. Current research is on energysector reform in New Zealand with particularreference to the electricity and gas industries;and the use of economic instruments topromote greenhouse gas abatement.

Judy BethwaiteResource allocation decision-making in publiclyfunded health care systems, the incentive/monitoring tradeoff in health care organisation,health care reform; the economics ofcolonisation and Maori deprivation.

Dawn BowdenBank and corporate treasury and financialrisk management: Treasury and bankingeducation.

Roger BowdenMacroeconomics and monetary economics -prices, business fluctuations and cycles,money and interest rates. Monetary policy -Central Banking and the supply of moneyand credit. Macroeconomic aspects ofpublic finance, macroeconomic policy andgeneral outlook. International economics.financial economics. General financialmarkets.

�Economy�, Chapter 28 in Rapaport, M. (ed), The Pacific Islands:Environment and Society, Bess Press, Hawaii, 1999.�Modelling the Effects on the New Zealand Economy of the Use ofEconomic Instruments to Reduce Carbon Dioxide Emissions�, in Bouma,W.J., G.I. Pearman, and M.R. Manning (eds), CollingwoodGreenhouse:Coping with Climate Change, CSIRO Publishing, VIC, 1996, 586-606.�Tradeable Emission Quotas, Technical Progress and Climate Change�,Environment and Development Economics, Vol 1, No. 4, 1996, 461-483.�Non-linear Pricing Theory: the Case of Wholesale Electricity Pricingin New Zealand�, New Zealand Economic papers, Vol 30, No. 1, 1996,87-108.

�Health Care Reform in New Zealand: A Constitutional Issue� (with B.Howell & C. Cangialose), www.iscr.org.nz.�The Ultimatum Game and Non-Selfish Utility Functions� (with P.Tompkinson), Journal of Economic Psychology, Vol 17, 2, 1996, 259-271.The Ultimation Game: Raising the Stakes� (with P. Tompkinson), Journalof Economic Behaviour and Organisation, Vol 27, 1995, 439-451.�An Economic Evaluation of Vaccination Strategies Against Hepatitis BVirus: Health Care Workers and Homosexual Men�, (with P. Bethwaite),New Zealand Economic Papers, Vol 25, 1991, 19-38.

Financial Maths for Managers, New Zealand: Dunmore Press, 1999.

SELECTION OF PUBLICATIONS

�Generalising interest rate duration with directional derivatives:Direction X and applications�, Management Science, 43, No. 5 (May1997).Statistical Games and Human Affairs, New York: Cambridge UniversityPress, 1988.�Repeated Sampling in the Presence of Publication Effects� Journal ofthe American Statistical Association, Vol 82 (June 1987), lead articlewith commentaries by P C Ordeshook and L S Cahoon; 476-84/91.�On the Existence and Secular Stability of u-v Loci� Economica, VolXL VII, No.1 (February 1980), 35-50


Gordon BoyceInternational business history, economics ofinformation, principal-agent theory, andtransaction cost analysis.

Bob BuckleMacroeconomics, business cycles,macroeconomic policy, internationalfinance, the micro foundations ofmacroeconomic models, application ofsurvey data in the analysis of firmbehaviour. Current research includes NewZealand�s current account sustainability,budget balance targets, inventories andGDP volatility

Stephen BurnellMonetary and banking theory,microecnomics, dynamic generalequilibrium models. Currently, researchingbanking and monetary policy in NewZealand; the demand for cash andtransactions costs; optimal fiscal policy;and telecommunications andinterconnections agreements.

Paul CalcottPublic economics, health economics,economics and philosophy. Currentresearch includes information asymmetriesand health care, and on the separabilitybetween efficiency and equity underoptimal taxation.

�Institutional Change in Maritime and Business History�, International Journalof Maritime History, Vol IX, No. 1, June 1997, 257-65.Information, Mediation and Institutional Development: The Rise of Large-scale Enterprise in British Shipping, 1870-1914, Manchester University Press,May 1995.�Sixty-fourthers, Syndicates and Stock Promotions: Information flows andFund-Raising Techniques used by British Shipowners between 1870 and1914�, Journal of Economic History, Vol 52, March 1992, 181-205.�The Development of the Cargo Fleet Iron Co. A Study of Entrepreneurship,Planning and Production Costs in the Northeast Coast Basic Steel Industry�,Business History Review, Vol 63, No. 4, Winter 1989, 839-75.

�Inflation and asymmetric price adjustment�, (with J. A. Carlson), TheReview of Economics and Statistics, 82(1), February 2000, 157-160.�Key Features of New Zealand Business Cycles�, (with K. H. Kim andV. B. Hall), Economic Record, 70, March 1994, 56-72.�How Do Firms React to Surprising Changes in Demand?: A vectorautoregressive analysis using business survey data�, (with C. S. Meads),Oxford Bulletin of Economics and Statistics, 53, November 1991, 451-466.�Reserve Bank Autonomy and the Credibility of Monetary Policy: AGame Theoretic Approach:, (with P. J. Stemp), New Zealand EconomicPapers, 25 (1), 1991, 51-85.

�The Ultimatum Game: Optimal strategies without fairness�, (with LewisEvans and Shuntian Yao), Games and Economic Behaviour, 26, 1999,221-252.�New Zealand�s Monetary Conditions Index: A critical analysis�, Agenda,5, 1998, 477-486.�The Value of Money in an Overlapping Generations Model; A Note�,Journal of Economic Theory, 59, 1993, 214-221.

�Health Care Evaluation, Utilitarianism and distortionary taxes�, Journalof Health Economics, 19, 2000, 719-730.�New on Paternalism�, Economics and Philosophy, 16, October 2000,315-321.�Can downstream waste disposal policies encourage upstream� �Designfor Environment�?�, (with Margaret Walls), American Economic Review:Papers and Proceedings, May 2000, 233-237�Demand inducement as cheap talk�, Health Economics, 8, 1999, 721-733.


Lewis EvansMicroeconomics; regulation, organisationand performance of markets and firms,financial econometrics. Current researchincludes performance of firms underdifferent competition and regulatorystructures; the theory and practice ofcontracts as applied to networkinterconnection contracts in oligopolisticmarkets.

Graeme GuthrieModelling the term structure of interestrates. The implementation of monetarypolicy and its effect on asset pricedynamics. Implications of real options forcapital budgeting and network regulation.

Viv HallMacroeconomic theory, modelling andpolicy. Current research involves NewZealand�s current account deficit; NewZealand�s monetary conditions; and NewZealand and Pacific Rim business cycleanalysis.

Gary HawkeEconomic History, especially New Zealand;application of economics to policy issues.

�The Search for Quality in Universities�, Agenda, Vol 4, No. 4, 1997,399-406.�Shareholder Liability Regimes, Principal-Agent Relationships andBanking Industry Performance�, (with Neil Quigley), The Journal ofLaw and Economics, Vol XXXVIII, No. 2, October 1995, 497-520.�On the Restrictive Nature of Constant Elasticity of Demand Functions�,(with S Garber), International Economic Review, Vol 35, No. 4, 1994,1015-1018.�Public Utility Regulators Are Only Human: A Positive Theory ofRational Constraints�, (with S Garber), American Economic Review, Vol78, No. 3, June 1988, 444-463.

�Open Mouth Operations� (with Julian Wright), Journal of MonetaryEconomics, 46(2), September 2000, 489-516.�Testing the Expectations Theory of the Term Structure for NewZealand� (with Julian Wright and Jun Yu), New Zealand EconomicPapers 33(1), 1999, 93-114.�User Charges for Internet: The New Zealand Experience� (withMichael Carter), Telecommunications Systems 6, 1996, 301-313.�Recursion Operators and Nonlocal Symmetries� Proceedings of theRoyal Society of London, Series A 446, 1994, 107-114.

�Fiscal Expansion, Monetary Policy, Interest Rate Risk Premia, and WageReactions�, (with David Rae), Economic Modelling, Vol 15, 1998, 621-640.�Pacific Rim Business Cycle Analysis: Synchronisation and Volatility�,(with K.H. Kim and R. A. Buckle), New Zealand Economic Papers, 32(2),December 1998, 129-159.�Economic Growth�, Chapter 2 in A Study of Economic Reform: The Caseof New Zealand, Brian Silverstone, Alan Bollard and Ralph Lattimore (eds),North-Holland: Amsterdam, 1996, 31-71.�Key Features of New Zealand Business Cycles�, (with Kunhong Kim andRobert A. Buckle), The Economic Record, 70(208), March 1994, 56-72.

The Thoroughbred Among Banks in New Zealand: Vol 1 1872-1947 TheEarly Years, National Bank of New Zealand Ltd, 1997.Improving Policy Advice, Institute of Policy Studies, 1993.The Making of New Zealand: An Economic History, CambridgeUniversity Press, 1985.Railways and Economic Growth in England and Wales, 1840-1870,Clarendon Press, 1970.


John HaywoodFrequency domain approaches to time seriesforecasting and model estimation.Application-specific model estimation andtesting procedures. Investigation of theeffects of endogenour dating of structuralchange on time series models, withapplications to unit root testing andforecasting. Dynamic seasonal time seriesmodels and their application, particularly toseasonal adjustment and forecasting.Leslie HullOpen economy macroeconomics,international capital flows, and internationaltaxation issues.

Colin JeffcoatTeaching of mathematical and statisticalconcepts to students of economics andbusiness.

Benoît JulienAuctions and market design, models ofprice formation, microfoundations ofmatching, contractual relationships,organisational structures and deregulation.

�An Improved State Space Representation for Cyclical Time Series�,(with G. Tunnicliffe Wilson), Biometrika, Vol 87, No. 3, 2000, 724-726.�Selection and Estimation of Trigonometric Component Models forSeasonal Time Series�, (with G. Tunnicliffe Wilson), Journal ofForecasting, Vol 19, No. 5, 2000, 393-417.�Fitting Time Series Models by Minimising Multi-Step Ahead Errors:A Frequency Domain Approach�, (with G. Tunnicliffe Wilson),Journal of the Royal Statistical Society, Series B, Vol 59, No. 1,1997, 237-254.�Extended Least Squares Curve Fitting: A Comparison of SIPHAR andMKMODEL�, (with I. D. Cockshott), Biopharmaceutics and DrugDisposition, Vol 13, 1992, 461-480.

You Can Probably do Business Statistics (Co-authors: C Jeffcoat and PBelgrave), Sydney, McGraw-Hill, 1997.You Can Do Maths (with P Belgrave), Palmerston North, Dunmore Press,1995.�Choice Under Uncertainty�, Journal of Economic Surveys, Vol 3, No.1, 1989, 97-105.

�Bidding For Labor�, (with John Kennes and Ian King), Review ofEconomic Dynamics, Vol 3, 2000 (forthcoming).

�The Structure of International Capital Flow�, The World�s New Finan-cial Landscape: Challenges of Economic Policy, Conference Volumepublished by the Kiel Institute for World Economics, Kiel, Germany,2000.


Stephen KeefAccounting ethics and education, employeeshare ownership, futures.

Mohammed KhaledConsumer demand models, prices indiciesand equivalence scales, productivityanalysis and factor demands, economics ofscale and scope. Current researchinvestigates economics of scale and scopein the New Zealand life insurance industry,and adult equivalence scales for NewZealand.

Kunhong KimBusiness cycle theory, macroeconomicpolicy and international finance, time serieseconometrics and its application tostochastic dynamic models.

�Modelling real interest rates�, (with L. T. Evans and J. Okunev), Journalof Banking and Finance, Vol 18, 1994, 153-165.�Specific abilities in accounting and economics�, EducationalPsychology, Vol 14, No. 2, 1994, 167-180.�Employee share sale and job attitudes�, Asia Pacific Journal ofManagement, Vol 11, No. 1, April 1994, 91-102.�Company Purchase of Own Shares: the case of New Zealand�, VictoriaUniversity Press for Institute of Policy Studies, 1989, 119.

�Effects of Transport Costs on Exports from New Zealand to the USA�,(with J Guria), International Journal of Transport Economics, February1990.�Estimates of Energy and Non-energy Elasticities in Selected AsianManufacturing Sectors�, (with C Siddayao et al), Energy Economics,April 1987.�The Incidence and Exportability and Hotel Occupancy and Other TouristTaxes�, (with E Fujii and J Mak), National Tax Journal, June 1985.�Parametric Productivity Measurement and Choice Among FlexibleFunctional Forms�, (with E Berndt), Journal of Political Economy,December 1979.

�The Econometric Analysis of Calibrated Macroeconomic Models�, (withA. R. Pagan), in M. Hashem Pesaran and M. Wickens (eds), TheHandbook of Applied Econometrics: Macroeconomics, Oxford,Blackwell, 1995, 356-390.�Dating New Zealand Business Cycles�, (with R. A. Buckle and V. B.Hall), New Zealand Economic Papers, Vol 29, No. 2, 1995, 143-171.�Key features of New Zealand Business Cycles�, (with R. A. Buckle andV. B. Hall), The Economic Record, Vol 70, March 1994, 56-72.�Real Business Cycles in a Small Open Economy�, in L. Evans, J. Pootand N. Quigley (eds), Long-run Perspectives on the New ZealandEconomy, Vol 2 of the Proceedings of the Sesquicentennial Conferenceof the New Zealand Association of Economists, June 1991, 325-337.

Jacek KrawczykComputational economics, mathematicalmodelling, dynamic games and optimalcontrol theory. Recently, working on theapplication of dynamic games and optimalcontrol to environmental management andfinancial engineering.

�Relaxation Algorithms to Find Nash Equilibria With EconomicApplications�, (with S. Uryasev), Environmental Modeling and Assessment,Vol 5, 2000, 63-73.�Optimal Charge on River Effluent from Lumped and Distributed Sources�,Co-author: A. Haurie, Environmental Modeling and Assessment, Vol 2,1997, 177-189.�Controlling a Dam of Environmentally Acceptable Standards through theUse of a Decision Support Tool�, Environmental and Resource Economics,Vol 5, 1995, 287-304.�Monitoring Cooperative Equilibria in a Stochastic Differential Game�,(with A Haurie and M Roche), Journal of Optimisation Theory andApplications, Vol 18, No. 1, 1994, 73-95.


Martin LallyCost of capital and valuation. Currentresearch is on the implications of dividendimputation for valuation, and the effect oftime-variation in firm and market leverageon both betas and the market risk premium.

Jerry MushinMacroeconomics, monetary policy andexchange rates.

Bryan PhilpottDevelopment of large scale computablegeneral equilibrium models of the economyfor medium term projections and economicpolicy planning. Current research is inexploring the use of such models for theanalysis of economic growth in NZ from1950-95.

Jacques PootGlobalisation: The �New EconomicGeography� and implications for NewZealand; International migration; Regionaldevelopment; Monopsony in local labourmarkets; Meta-analysis; Empirical evidencefor endogenous growth.

Income, Interest Rates and Prices [Third Edition], The Dunmore PressLtd, Palmerston North, 1999.�Exchange-Rate Policy in the South Pacific�, Journal of IndustrialAffairs, Vol 4, No. 2, December 1995.�A Multi-Currency Adjustment System for the South Pacific�, SingaporeEconomic Review, Vol 36, No. 1, May 1993.�Exchange-Rate Adjustment in a Multi-Currency Monetary System�,Simulation, Vol 36, No. 5, 1981.

�General Equilibrium Modelling for Policy Analysis and EconomicPlanning�, International Forecasting Association, Wellington 1992.�Economic Growth in New Zealand: Models and Experience�, Long-Run Perspectives of the New Zealand Economy: Proceedings of theSesquincentennial Conference of the New Zealand Association ofEconomists Auckland, August 20-22, 1990, Vol II, L. Evans, J.Poot andN. Quigley (eds), June 1991, 290-235.�Jobs and High Wages: The Implications of Productivity Gains in aGeneral Equilibrium Setting�, Institute of Policy Studies and VictoriaUniversity Press, Wellington 1989.�International Migration and the New Zealand Economy: A Long-RunPerspective� (with G Nana and J Poot), Institute of Policy Studies andVictoria University Press, Wellington, 1988.

�Valuation of Companies and Projects Under Differential PersonalTaxation�, Pacific-Basin Finance Journal, Vol 8, No. 1, 2000, 115-133.�The Cost of Equity Capital and its Estimation, McGraw-Hill Series inAdvanced Finance, Vol 3, Sydney: McGraw-Hill, Australia, 1999.�An Examination of Blume and Vasicek Betas�, The Financial Review,Vol 33, No. 3, 1998, 183-198.�The CAPM Under Dividend Imputation�, Pacific Accounting Review,Vol 4, 1992, 31-44.

Regional Cohesion and Competition in the Age of Globalization, (co-editors H. Kohno and P. Nijkamp), Edward Elgar, Cheltenham UK, 2000.Crossing Borders: Regional and Urban Perspectives on InternationalMigration, (co-editors C. Gorter and P. Nijkamp), Ashgate, AldershotUK, 1998.�A Stud of Trade Liberalisation and Factor Mobility with a CGE Modelof Australia and New Zealand�, (with G Nana), Studies in RegionalScience, Vol 26, No. 2, 1996, 27-52.�A System Approach to Modelling the Inter-Urban Exchange of Workersin New Zealand�, Scottish Journal of Political Economy, Vol 33, No. 3,1986, 249-274.


�On the Existence of Moments of Ratios of Quadratic Forms�,Econometric Theory, 11, 750-774, 1995.�Risk Management of Catastrophes in New Zealand�, Australian Instituteof Actuaries� Quarterly Journal, 23-46, 1995.�Weighted Mortality Rates as Early Warning Signals for InsuranceCompanies�, Astin Bulletin, Vol 23, No. 2, 273-286, 1993.�On Ratios of Random Variables and Generalised Mortality Rates�,Journal of Applied Probability, 29, 1992, 268-279.

Leigh RobertsFinancial mathematics, risk managementand insurance.

John SingletonNew Zealand�s international economicrelations in the twentieth century, in thecontext of the evolving commercial andfinancial networks of the British Empireand Commonwealth.

�The Old Commonwealth and Britain�s First Application to Join theEEC�, (with P. Robertson), Australian Economic History Review, Vol40, No. 2, 2000, 153-77.The World Textile Industry, Routledge, 1997.The Political Economy of Nationalisation in Britain, 1920-50, (jointeditor R. M. Millward), Cambridge University Press, 1995, 256.Lancashire on the Scrapheap: The Cotton Industry, 1945-70, OxfordUniversity Press, 1991.

Paul TompkinsonEconomic methodology, international tradetheory and policy. Current research is ontrade and welfare with occupationalpreferences, argumentation in economicsand the methodology of economicmodelling.

Margaret WallsEnvironmental and natural resourceeconomics, public economics, and theeconomics of transportation.

�The Ultimation Game: and Non-Selfish Utility Functions�, (with J.Bethwaite), Journal of Economic Psychology, Vol 1, 1996, 48-71.�The Ultimation Game: Raising the Stakes�, (with J. Bethwaite), Journalof Economic Behaviour and Organisation, Vol 27, 1995, 439-451.�The Strategic Use of Economic Models in a Macro Game�, New ZealandEconomic Papers, Vol 25, 1991, 39-50.�The Effect of Information on Fiscal Preferences�, (with J. Bethwaite),Journal of Economic Psychology, Vol 12, 1991, 287-298.

�Measuring the Incidence of an Environmental Tax Shift: The Case ofMotor Vehicle Emissions Taxes�, (with Jean Hanson), National TaxJournal, Vol 52, No. 1, (March 1999), 53-66.�Optimal Policies for Solid Waste Disposal: Taxes, Subsidies, andStandards�, (with Karen Palmer), Journal of Public Economics, Vol 65,No. 2, (August 1997), 193-205.�Valuing the Characteristics of Natural Gas Vehicle: An Implicit MarketsApproach�, Review of Economics and Statistics, Vol 78, No. 2, (May 1996),266-76.�Nonrenewable Resource Supply: Theory and Practice�, (with MichaelToman), Chapter 9 of The Handbook of Environmental Economics, DanielBromley (ed), Basil Blackwell, Oxford, 1995.


Andrew WeissTheoretical and applied econometrics, timeseries analysis and forecasting. Currentresearch is on simultaneity and sampleselection in poisson regression models andBayesian analysis of calibrated models.

�The Effects of Vertical Integration Between Cable Television Systemsand Pay Cable Networks�, (with D Waterman), Journal of Econometrics,Vol 72 (1-2), 1996, 357-395.�Estimating Time Series Models using the Relevant Cost Function�,Journal of Applied Econometrics, Vol 11, 1996, 539-560.�Estimating Nonlinear Dynamic Models using Least Absolute ErrorEstimation�, Econometric Theory, Vol 7, 1991, 46-68.�Asymptotic Theory for ARCH Models: Estimation and Testing�,Econometric Theory, Vol 2, 1986, 107-131.

Shuntian YaoGame theory, general equilibrium theory,microeconomic theory and mathematicaleconomics.

�Corruption and the Anti-corruption Movement: Modelling and Analysisof the Situation in China�, Australian Economic Papers, Vol 36, June1997, 156-165.�Market Mechanism for the State-Owned Enterprises and GovernmentTaxation�, Victoria Economic Commentaries, Vol 9, No. 2, 1992.�A Strategic Market Game with Complete Markets�, Journal of EconomicTheory, Vol 51, No. 1, 1992.�The Non Co-operative Equilibria of a Trading Economy with CompleteMarkets and Consistent Prices�, Journal of Mathematical Economics,Vol 18, No. 4, 1989.

Yue YuEconometrics, non-parametric and semi-parametric estimation, discrete choiceanalysis.

Jie ZhangEconomic growth and development,macroeconomic, monetary economics,public economics. Current researchinvestigates the impacts of public policyand institutional changes on growth, fertilityand welfare.

�Gender Bias and Economic Development in an Endogenous GrowthModel�, (with Junsen Zhang and Tianyou Li), Journal of DevelopmentEconomics, Vol 59, 1999, 497-525.�The Transition to Market Economies in an Endogenous Growth Modelwith Altruistic Agents�, Scandinavian Journal of Economics, Vol 101,No. 1, 1999, 11-31.�Optimal Public Investment in Education and Endogenous Growth�,Scandinavian Journal of Economics, Vol 98, No. 3, 1996, 387-404.�Social Security and Endogenous Growth�, Journal of Public Economics,Vol 58, No. 2, 1995, 185-213.


Research Activities

Research in the School of Economics and Finance has a highpriority. The quality and range of research by members ofthe School is demonstrated in this section of the AnnualReport. These publications represent the outcome of researchthat may have been undertaken in 2000 or in earlier years.Research is funded from the normal University budgetallocation to Faculties and Schools, and by specific researchgrants from external organisations.The dissemination of research by members of the School atconferences and seminars both here and overseas is alsorecognised in this section of the Report. The School hostsvisiting overseas academics. It runs a seminar series whichis held every Wednesday during the academic year, and aworkshop series held on Fridays. Through conferencepresentations, the seminar series and visiting academics whomay spend several months at Victoria University, the Schoolenjoys a valuable interchange of ideas with economists fromaround the world.The School also publishes the Victoria EconomicCommentaries which includes economic analysis, reviews andcommentaries on contemporary economic issues and ideas.


PUBLICATIONSRefereed Journal PublicationsBuckle, Robert A. (with J. A. Carlson), �Inflation and asymmetric price adjustment�, Review of Economics andStatistics, 82(1), 2000, 157-160.Buckle, Robert A. (with J. A. Carlson), �Menu costs, firm size and price rigidity�, Economics Letters, 66(1),2000, 59-63.Buckle, Robert A., �Macroeconomic Stability: Good Luck, Good Policy or Good Management?�, Competitionand Regulation Times, Institute for the Study of Competition and Regulation, April 2000, 6-7.Calcott, Paul E., �Health Care Evluation, utilitarianism and distortionary taxes�, Journal of Health Economics,19, 2000, 719-730.Calcott, Paul E., �New on paternalism�, Economics and Philosophy, 16, 2000, 315-321.Calcott, Paul E. (with M Walls), �Can downstream waste disposal policies encourage upstream �Design forEnvironment�?�, American Economic Review: Papers and Proceedings, May 2000, 233-237.Guthrie, Graeme (with J. Wright), �Open Mouth Operations�, Journal of Monetary Economics, 46(2), September2000, 489-516.Guthrie, Graeme (with R. Bowden), �Venture Options: Unlocking the Value of Information�, ASX Perspective47-52, 1st Quarter, 2000.Hawke, Gary, �Bookmarking the Century�, Landfall 1999, March 2000, 55-9.Haywood, John (with G. Tunnicliffe Wilson), �An Improved State Space Representation for Cyclical TimeSeries�, Biometrika, Vol 87, No 3, 2000, 724-726.Haywood, John (with G. Tunnicliffe Wilson), �Selection and Estimation of Trigonometric Component Modelsfor Seasonal Time Series�, Journal of Forecasting, Vol 19, No 5, 2000, 393-417.Khaled, Mohammed (with M. Adams and M. Pickford), �Estimates of Scale and Scope Economies in the NewZealand Life Insurance Industry�, The Manchester School, March 2000.Kim, Kunhong (with S. Moon), �Foreign Reserve Crisis and the Korean Industrial Structure - A CGE Approach�,Mathematical and Computer Modelling, Elsevier Science, Vol 33, Issue 6/7, 2001, 577-596.Krawczyk, Jacek (with S. Uryasev), �Relaxation Algorithms to Find Nash Equilibria with EconomicApplications�, Environmental Modeling and Assessment, Vol 5, 2000, 63-73.Lally, Martin, �Valuation of Companies and Projects Under Differential Personal Taxation�, Pacific-BasinFinance Journal, Vol 8, No 1, 2000, 115-133.Lally, Martin, �The Valuation of GSF�s Defined Benefit Pension Entitlements�, New Zealand Economic Papers,Vol 34, No 2, 2000.


Mushin, Jerry, �Co-Existing Prices and Cross-Elasticity of Demand�, Kyklos, Vol 53, No 1, March 2000, 71-74.Poot, Jacques, �A Synthesis of Empirical Research on the Impact of Government on Long-run Growth�, Growthand Change, Vol 31, No 4, 2000, 516-546.Poot, Jacques (with P. Nijkamp), �Tegenvoeters Veranderen van Koers� (Antipodeans are Changing Course),Economisch Statistische Berichten, Vol 85, No 4247, 2000, 226-227 (in Dutch).Singleton, John (with P. Robertson), �The Old Commonwealth and Britain�s First Application to join the EEC�,Australian Economic History Review, Vol. 40, No 2, 2000, 153-77.Zhang, Jie (with J Davies and Jinli Zeng), �Consumption vs. Income Taxes When Private Human CapitalInvestments are Imperfectly Observable�, Journal of Public Economics, Vol 77, No.1, 2000, 1-28.

BooksBoyce, Gordon, Co-operative Structures in Global Business: Communicating, Transferring Knowledge, andLearning across the Corporate Frontier, London: Routledge, 2000.Lally, Martin, The Cost of Equity Capital and its Estimation, McGraw-Hill Series in Advanced Finance, Vol 3,Sydney: McGraw-Hill Australia, 1999.Mushin, Jerry, Income, Interest Rates and Prices [Third edition], The Dunmore Press Ltd, Palmerston North,1999, 210.Poot, Jacques, (with H Kohno and P. Nijkamp) (ed), Regional Cohesion and Competition in the Age ofGlobalization, Edward Elgar, Cheltenham UK, 2000.Poot, Jacques, Economic Principles for the Building Sector: A New Zealand Text, School of Architecture,Victoria University of Wellington, revised edition, 2000.

Chapters in BooksBertram, Geoffrey, �The MIRAB Model�, The Pacific Island: An Encyclopaedia, (eds), B.V. Lal and K. Fortune,University of Hawaii Press, 1999.Buckle, Robert A. (with D. Haugh and P. Rodway), �What determines firm investment intentions? Micro and macroanalyses using business survey data�, Chapter 15, K.H. Oppenlander, G. Poser and B. Schips (eds), Use of Survey Datafor Industry, Research and Economic Policy, Aldershot, Ashgate, 2000, 291-309.Buckle, Robert A. (with J. Carlson), �Menu costs, firm size and price rigidity: Evidence and Business Survey Data�,Chapter 14, K.H Oppenlander, G. Poser and B. Schips (eds), Use of Survey Data for Industry, Research and EconomicPolicy, Aldershot, Ashgate, 2000, 279-290.


Hawke, Gary, �WTO, APEC and Bilateral Relations: The Mutual Interest of Japan and New Zealand in an EconomicConception of Economic Integration,�, in New Zealand and Japan: What Next�, (Palmerston North: NZ JapanCentre, Massey University, and Tokyo: Ministry of Foreign Affairs, 2000), 7-13.Hawke, Gary, �Constraints and Opportunities of the Globalised Economy� in Colin James (ed), Building the Constitution,(Wellington: Institute of Policy Studies, 2000), 133-38 [Also printed in IPS Policy Newsletter 62, August 2000, 7-13]Hawke, Gary, �Special article on twentieth century experience: The economy�, New Zealand Official Yearbook,(Wellington: Statistics New Zealand, 102nd edition 2000), 379-84.Poot, Jacques, �Reflections on Local and Economy-Wide Effects of Territorial Competition�, in P.W.J. Batey and P.Friedrich (eds), Regional Competition, Springer Verlag, Heidelberg, 2000, 205-230.Poot, Jacques, �The Impact of Globalization on Labour Markets in the Pacific Rim�, in The 21st Century: An Era ofGlobalization and Creative Diversity - Proceedings of an International Symposium, University of Ulsan, Korea, 2000,49-77.Singleton, John (jointly P. Robertson), �Britain, the Dominions and the EEC, 1961-1963�, in A. Deighton and A.S.Milward, (eds), Widening, Deepening and Acceleration: The European Economic Community, 1957-1963, Baden-Baden, Nomos Press and Brussels, Bruylalnt, 1999, 107-22.

Review ArticlesBertram, Geoffrey, review of �New Ideas from Dead Economists: An Introduction to Modern Economics�, by ToddBuchholz, The Economic Record, Vol 76, No 234, September 2000, 312-314.Bowden, Roger and Graeme Guthrie, �Venture Options: Unlocking of the value of information�, ASX Perspectives,Journal of the Australian Stock Exchange, 1Q, 2000, 47-52.Boyce, Gordon, review of �The Global Restructuring of the Steel Industry�, by A. D�Costa, Business History, Vol 42,No 1, January 2000, 146-7.Boyce, Gordon, review of �The Abandoned Ocean. A History of United States Maritime Policy�, by A. Gibson and A.Donovan, E-H net, September 2000.Krawczyk, Jacek, review of �Stochastic and Differential Games� by M. Bardi, TES Raghavan, T. Parthasarathy, forControl and Cybernetics, published by Birkhauser, 1999.Mushin, Jerry, review of �From EMS to EMU: 1979 to 1999 and Beyond�, by David Cobhamd and George Zis (eds),Macmillan Press Ltd, London, UK, 1999, Kyklos, Vol 53, No 1, March 2000.Singleton, John, review of �Gentlemanly Capitalism and British Imperialism�, by R.E. Dummet, (ed), in BusinessHistory, Vol 42, No 1, 2000, 111-12.Singleton, John, review of �British Industrial Decline�, by P. Dormois and M. Dintenfass, (eds), in BusinessHistory, Vol 40, No 1, 2000, 112-13.


Singleton, John, review of �Australia in the Global Economy�, by D. Meredith and B. Dyster, in Australian EconomicHistory Review, Vol 40, No 3, 315-16.

Monographs and other Research PapersBertram, Geoffrey (with S Terry),�Lining Up the Charges: Electricity Line Charges and ODV�, Wellington ,Simon Terry Associates Monograph, July 2000, 42.Buckle, Robert A. and Kunhong Kim (with Julie Tam ), �A Structural VAR Approach to Estimating andAppropriate Ex Ante Budget Balance Target�, Research Paper for NZ Treasury, Wellington, 2000, 36.Calcott, Paul (with M Walls), �Policies to encourage recycling and �design for environment�: what to do whenmarkets are missing�, Resources for the Future discussion paper, June 2000, 30.Hawke, Gary, �Evidence�, Waitangi Tribunal Petroleum claim, WAI 796 #A32 40 pp + �Supporting Documents�,Vol 1 and Vol 2, 2000.Hawke, Gary, �Evidence on Economic History issues�, Waitangi Tribunal Hauraki regional enquiry, WAI 686,and WAI 100 & Ors, 68.Haywood, John, �On Log-Transformations, Vector Autoregressions and Empirical Evidence�, GSBGM WorkingPaper, 5/100, Victoria University of Wellington, September 2000, 1-16.Lally, Martin, �The Real Cost of Capital in New Zealand: Is it too High?�, published by the New ZealandBusiness Rountable, 2000.Poot, Jacques (with P. Morrison and K. Papps), �Local labour Markets, Migration and Wage Determination:Theory and Evidence for the Wage Curve in New Zealand�, GSBGM Working Paper 1/100, 2000, 38.Poot, Jacques (with K. Kleinveld and P. Nijkamp), �Kiwi�s in de Polder� (Kiwis in the Polder), ResearchMemorandum 2000-9, Faculty of Economics and Econometrics, Free University Amsterdam, 2000, 8 (in Dutch).Yao, Shuntian, �Walrasian Equilibrium Computation, Network Formation and the Wen Theorem�, MonashUniversity, Economics Department Working Paper, March 2000.Yao, Shuntian, �Privilege and Corruption, the Problems of China�s Socialist Market Economy�, MonashUniversity, Economics Department Working Paper, October 2000.


Victoria Economic Commentaries ContributionsEditor: Dr Colin JeffcoatOctober 2000, Volume 17, Number 2.�Bryan Philpott�, pp 1-7 Professor Gary Hawke, Victoria University of Wellington�Tasman or Pacific? The case for a multilateral USD connection�, pp 8-16 Jacques Poot, Victoria University of Wellington�Case for a World Currency: Is an ANZAC Dollar a Logical Step�, pp 17-26 Dr Arthur Grimes, Victoria University of Wellington.�An Australasian Oceans Policy?�, pp 27-34 Peter Cozens, Victoria University of Wellington�Free Market Reform in New Zealand: An Australian Perspective�, pp 35-42 John Quiggin, Australian National University, Canberra, Australia�Valuing the Benefits of Public Goods to Meet the Requirements of the Local Government Act in New Zealand�, pp 43-50 Caroline Saunders and Ross Cullen, Lincoln University and R Ball, Canterbury Regional Council, Christchurch�VUW Economic Graduate No.2�, pp 51-52

Tim Groser (Asia 2000 Foundation)

March 2000, Volume 17, Number 1.�World Famous in New Zealand: Growing World-Competitive Firms from a New Zealand Base�, pp 1-10

Associate Professor Colin Campbell-Hunt, Associate-Professor Laurie Corbett & Dr Sylvie Chetty,Victoria University of Wellington

"Reassessing Protectionism� , pp 11-16 Deborah Mabbett, Brunel University, Middlesex, UK�Tomorrow is Another Day: Forecasts and their Uses�, pp 17-21 Dr John Haywood, Victoria University of Wellington�Are we Delivering Indigenous Biodiversity Conservation Outcomes in the Best Possible Way? pp 22-29 David A. Norton & C. Hamish Cochrane, University of Canterbury, Christchurch�Voting for More?: Ageing and Health Spending�, pp 30-38

Audrey Teasdale, Ministry of Health, Wellington


�Paternalism and Public Choice�, pp 39-46 Paul Calcott, Victoria University of Wellington�VUW Economic Graduate No.1�, pp 47-48 Matthew Goodson (J.B Were & Son, NY)

Victoria Economic Commentaries Monograph Series:�The Research Project on Economic Planning: A brief account of its 30 years of work, 1970-200�,pp 1-32

Emeritus Professor Bryan Philpott, Victoria University of Wellington


Bertram, Geoff, The Optimised Deprival Value Methodology and the Objectives of Utility Sector reform inNew Zealand, New Zealand Association of Economists Conference, Wellington, July 2000.Bertram, Geoff, The Factor Shares Debate: An Update, Ninth Labour Employment and Work Conference,Wellington, November 2000.Bertram, Geoff, Examining the Options for Developing a Basis for Valuation and Pricing, Electricity IndustryConference, Welllington, November 2000.Boyce, Gordon, Transferring Capabilities across Sectoral Frontiers: Ship Owners entering the AirlineBusiness 1920-1970, Third International Congress of Maritime History, Esbjerg, Denmark, August 2000.Boyce, Gordon, Negotiating Costs and Transaction Costs, Economic History Society of Australia and NewZealand, Wollongong, December 2000.Boyce, Gordon (with L. Lepper), Assessing Information Quality, Economic History Society of Australia andNew Zealand, Wollongong, December 2000.Buckle, Robert A. (with J. Tam and Kunhong Kim), A Structural VAR Approach to Estimating and Appropriate exante Budget balance Target, NZ Association of Economists Annual Conference, Wellington, July 2000.Burnell, Stephen, The Political Economy of Distortionary Taxation, Research Department, Federal ReserveBank of Minneapolis, April 2000.Burnell, Stephen, The Political Economy of Distortionary Taxation, CREB, Barcelona, May 2000.Guthrie, Graeme, The Optimal Design of Interest Rate Target Changes, Reserve Bank of New ZealandWorkshop, Monetary Policy Decision Making - Proactive or Reactive?, June 2000.Guthrie, Graeme, Interest Rate Dynamics and Interest Rate Targeting, Reserve Bank of New Zealand,November 2000.Hall, Viv (with Kunhong Kim and R. A. Buckle), New Zealand�s Current Account Deficit: Analysis basedon the Intertemporal Optimisation Approach, Seminar to New Zealand Treasury�s Macroeconomic IssuesGroup, January 2000.Hall, Viv (with Kunhong Kim and R. A. Buckle), New Zealand�s Current Account Deficit: Analysis basedon the Intertemporal Optimisation Approach, the Department of economics, Purdue University, WestLafayette, Indiana, April 2000.Hall, Viv (with Kunhong Kim and R. A. Buckle), New Zealand�s Current Account Deficit: Analysis basedon the Intertemporal Optimisation Approach, Economics Department, Federal Reserve bank of St. Louis,Missouri, May 2000.Hall, Viv (with Kunhong Kim and R. A. Buckle), New Zealand�s Current Account Deficit: Analysis basedon the Intertemporal Optimisation Approach, NZ Association of Economists Annual Conference, Wellington,July 2000.

EXTERNAL SEMINAR AND CONFERENCEPRESENTATIONS


Hall, Viv (with Kunhong Kim and R. A. Buckle), New Zealand�s Current Account Deficit: Analysis basedon the Intertemporal Optimisation Approach, the Department of Economics, University of Auckland, July2000.Hawke, Gary, Economic Performance, NZIER Public Policy Workshop, Wellington, February 2000.Hawke, Gary, WTO, APEC, and Bilateral Relations: The mutual interest of Japan and New Zealand in aneconomic conception of economic integration, Seminar on �New Zealand and Japan: What Next?�, NewZealand Japan Centre and the Embassy of Japan as part of the Gaimusho Peace, Friendship and ExchangeProgramme (the Murayama Initiative), Wellington, February 2000.Hawke, Gary, Implications of a Global Society, Institute of Policy Studies Convention, Building theConstitution, Wellington, April 2000.Hawke, Gary, Strategic Issues for New Zealand, NZ Association of Economists Annual Conference,Wellington, July 2000.Haywood, John, An Improved State Space Model for Stochastic Cycles with Seasonal Applications, Schoolof Economic Studies Econometric Seminar, University of Manchester, November 2000.Haywood, John, An Improved State Space Representation for Cyclical Time Series, New Zealand EconometricsStudy Group Meeting, Victoria University of Wellington, March 2000.Hull, Leslie (with Linda L.Tesar), The Structure of International Capital Flow, The World�s New FinancialLandscape: Challenges for Economic Policy, Kiel Institute of World Economics, Kiel, Germany, June2000.Hull, Leslie (with Linda L. Tesar), Risk, Specialisation, and the Composition of International Capital Flows,NZ Association of Economists Annual Conference, Wellington, July 2000.Kim, Kunhong (with R. A. Buckle and J. Tam), A Structural VAR Approach to Estimating and Appropriateex ante Budget Balance Target, New Zealand Treasury Macroeconomics Group Seminar, Wellington, August2000.Kim, Kunhong, New Zealand�s Current Account Deficit: Analysis based on the Intertemporal OptimizationApproach, Reseach Institute for Economics and Business Administration, Kobe University, Kobe, Japan,November 2000.Kim, Kunhong, Asset Pricing Puzzles and the Business Cycle in Agency-Cost Model, Department ofEconomics, Osaka University, Osaka, Japan, November 2000.Krawczyk, Jacek, An Open-Loop Nash Equilibrium in an Environmental Game with Coupled Constraints,Ninth International Symposium on Dynamic Games and Applications, Adelaide, South Australia, December2000. http://www.vuw.ac.nz/~jacek/somepapers/oploopj.psKrawczyk, Jacek, A Markovian Approximated Solution to a Portfolio Management Problem, FifthInternational Conference on Computing in Economics and Finance, Barcelona, Spain, July 2000.http//:www.vuw.ac.nz/~jacek/somepapers/portfbet1b.ps


Krawczyk, Jacek, Nash Normalised Equilibria in an Environmental Game with Coupled Constraints, Seminarof the Research Institute for Economics & Business Administration, Kobe University, Kobe, Japan, July2000.Krawczyk, Jacek, Solutions to a Portfolio Management Problem through Markovian Approximations, Schoolof Finance and Economics, University of Technology, Sydney, Australia, September 2000.Lally, Martin, Betas and Industry Weights, Accounting Assocation of Australia and New Zealand Conference,Hamilton Island, Queensland, July 2000.Lally, Martin, Betas and Industry Weights, Southern Finance Association Conference, Savannah, Georgia,November 2000.Lally, Martin, Capital Gains and the Capital Asset Pricing Model, Australasian Finance and BankingConference, Sydney, December 2000.Poot, Jacques, Local labour markets, migration and wage determination, International Symposium onRegional Development, Port Elizabeth Technikon, South Africa, 25 January 2000.Poot, Jacques, Meta-analytic perspectives on the impact of fiscal policies on long-run regional growth,International Symposium on Reginal Development, Port Elizabeth Technikon, South Africa, 26 January2000.Poot, Jacques, Local labour markets, migration and wage determination: New Zealand evidence for thewage curve, New Zealand Econometric Study Group Meeting, Old Government Buildings, Wellington, 4March 2000.Poot, Jacques, Wages and Unemployment: A Meta-Analysis of Research on the Wage Curve in ReginalLabour Markets, 6th Summer Institute of the Pacific Regional Science Conference Organisation, MexicoCity, 14 June 2000.Poot, Jacques, A Meta-Analytic Study of the Role of Government in Long-Run Economic Growth, NewZealand Association of Economists Annual Conference, Wellington, 13 July 2000.Poot, Jacques, The Impact of Globalisation on Regional Labour Markets in the Pacific Rim, InternationalSymposium in Commemoration of the 30th Anniversary of the University of Ulsan, Korea, 31 October2000.Poot, Jacques, Disparities and Despair: Changes in Regional Income Distributions in New Zealand 1981-1996, 24th Annual Conference of the Australian and New Zealand Section of the Regional Science AssociationInternational, Hobart, Australia, 4 December 2000.Poot, Jacques, Wages and Unemployment in Local Labour Markets: a Meta-Analysis of Empirical EvidenceRegarding the Wage Curve, 24th Annual Conference of the Australian and New Zealand Section of theRegional Science Association International, Hobart, Australia, 4 December 2000.Roberts, Leigh, Towards the approximate evaluation of Jack polynomials, New Zealand Econometrics StudyGroup, Christchurch, November 2000.


Roberts, Leigh, Chaos in Finance, or Finance in Chaos?, New Zealand Society of Actuaries, Christchurch, November2000.Singleton, John, The Postwar British Arms Industry and the Commonwealth: A Case Study of the New ZealandMarket, 1950-70,Association of Business Historians Conference, London, June 2000.Singleton, John, The Postwar British Arms Industry and the Commonwealth: A Case Study of the New ZealandMarket, 1950-70,Anglo-American Conference of Historians, London, July 2000.Singleton, John, New Zealand as a Market for British and American Arms, Australasian Economic and MaritimeHistory Conference, Wollongong, December 2000.Zhang, Jie, Growth, Convergence, and Income Inequality in a Model with Life-Cycle Saving and Human Capital,University of Windsor, Canada, March 2000.Zhang, Jie, Optimal Tax Mix in a Two-Sector Growth Model with Transitional Dynamics: An Analytical Approach,University of Western Ontario, Canada, March 2000.Zhang, Jie, Growth, Convergence, and Income Inequality in a Model with Life-Cycle Saving and Human Capital,Canterbury University, Christchurch, May 2000.Zhang, Jie, Optimal Tax Mix in a Two-Sector Growth Model with Transitional Dynamics: An Analytical Approach,New Zealand Association of Economists Annual Conference, Wellington, June 2000.Zhang, Jie, Growth, Convergence, and Income Inequality in a Model with Life-Cycle Saving and Human Capital,University of Queensland, Australia, October 2000.


VUW ECONOMICS AND FINANCE SEMINAR SERIESConvenor: Benoit Julien (January to June 2000)

Jie Zhang (July to December 2000)

March 22Peter Read (Massey University)Dynamically efficient climate change policy for New ZealandApril 5Peter Kennedy (Simon FraserUniversity, Canada)Eight reasons why real versus nominal interest rates is the most important concept in macroeconomicsprinciples coursesMay 3Steve Jones (University of Dundee)Routines, capabilities and the growth of the firm: The case of Ross & Glendining Ltd., Dunedin, 1862-1900May 26Jian Yang (University of Western Ontario, London, Canada)Semiparametric maximum likelihood estimation of ARMA modelsMay 31Ed Glaeser (Harvard University)The Poor and CitiesJune 14Argia Sbordone (Rutgers University)Price and unit labour costs: A new test of price stickinessJune 21Peter Berg (Michigan State University)Do high performance work systems pay offJuly 7Ronald MacDonald (University of Strathclyde)International parity relationships between Germany and the United States: A joint modelling approachJuly 26Julia Lane (University of Maryland, USA)An issue regarding matching models in labour marketsJuly 26Harry Paarsch (University of Iowa, USA) (with Institute for the Study of Competition & Regulation)Identification, estimation and testing in empirical models of sequential, ascending-price auctions withmulti-unit demand: An application to Siberian timber-export permitsAugust 18Andrew Muller (McMasters University, Ontario, Canada)Single-trader market power in double auctions for emissions permits


August 23Robert MacCulloch (London School of Economics, UK)Partisan social happinessSeptember 15Wing Thye Woo (University of California, Davis CA, USA)Transition strategies: The second round of debateOctober 27Clive Granger (University of California, San Diego, USA)Models for volatility and lessons for time series methodologyNovember 15Jacek Krawczyk (VUW, SEF)An open-loop nash equilibrium in an environmental game with coupled constraintsNovember 20Malgosia Madajewicz (Economics Department, Columbia University)Capital for the Poor: The effect of wealth on the optimal credit contractNovember 22Chris Plantier (Reserve Bank of New Zealand)Interest rate smoothing in New Zealand: An international comparisonDecember 1Gustav Feichtinger (Vienna University of Technology)Dynamic cost-benefit analysis in the economic of crime


VISITORS

Professor Peter SchmidtProfessor of Econometrics, Michigan State University, USA.

Professor David GilesProfessor of Econometrics, University of Victoria, Canada.

Professor Clive GrangerProfessor of Econometrics, University of California at San Diego, USA.

Professor Christine AmslerProfessor of Economics, Michigan State University, USA..

Professor Michael WoodfordProfessor of Economics, Princeton University, USA.

Professor Argia SbordoneProfessor of Economics, Rutgers University, USA.

Professor George BorjasProfessor of Economics, Harvard University, USA.

Professor Michael GreenwoodProfessor of Economics, University of Colorado, USA.


Teaching

The School of Economics and Finance is responsible for thedelivery of core undergraduate and graduate (Honours andMasters) programmes. The papers taught and numbersenrolled in 2000 are listed in this section. They include papersin Economics (primarily ECON labelled courses),Econometrics (QUAN labels), Economic History (ECHIlabels), Money and Finance (MOFI labels), FinancialMathematics (FINM labels), the Master of Applied Finance(MMAF), and the Diploma and Masters in FinancialMathematics. SEF Staff also taught in a wide range of otherpapers as part of programmes run elsewhere at VUW,including the MBA, MPP, MPM and MDS programmes andvarious Diploma programmes.The Graduate Economics programme (which incorporatespapers in Economics, Econometrics, Economic History, andMoney and Finance) has an international reputation for thequality of the graduates it turns out. The outstandingacademic achievements of some of our students are alsodocumented in this section of the Annual Report.

Undergraduate TeachingCourse co-ordinators are denoted by an asterisk and enrolments for these courses appear in brackets

Economics CoursesECON 102: Introduction to Applied Economics (41) G Boyce*ECON 130: Microeconomics (1112) G Hawke*, J Bethwaite, R Bowden, L Hull, J Mushin, P ProffittECON 113: Economics for Tourism (62) J Singleton*ECON 140: Macroeconomics (401) P Calcott*, J Mushin, R BowdenECON 201: Microeconomics (121) Margaret Walls*, M KhaledECON 202: Macroeconomics (110) Viv Hall*, Leslie HullECON 305: Macroeconomic Theory (34) G Bertram*, K H Kim, J ZhangECON 309: International Economics (32) P Tompkinson*, B JulienECON 310: History of Economic Thought (7) G Hawke*


ECON 314: Microeconomics: Information and Markets (37) P Calcott*, S YaoECON 328: Industrial Organisation (20) M Walls*, G BoyceECON 330/LAWS 335: Special Topic: Law and Economics (30) J Bethwaite*, James Palmer(Law Faculty)ECON 333: Labour Economics (14) P Calcott, J Poot*ECON 335: Managerial Economics (13) S Yao*Economic History CoursesECHI 201: Introduction to Asian Economic History (28) J Singleton*ECHI 202: The Development of the Modern International Economy (16) G Hawke*ECHI 303: Modern British Economic History (12) J Singleton*ECHI 305: Special Topic: Advanced Topics in Modern Business Enterprise (10) G Boyce*Money and Finance CoursesMOFI 201: Finance (267) S Keef*, M LallyMOFI 202: Money and Finance (111) S Burnell*, J MushinMOFI 301: Corporate Finance (75) M Lally, G Guthrie*MOFI 302: Financial Policy and Management (36) S Keef*MOFI 303: Monetary Economics (43) S Burnell*MOFI 305: Investments (68) M Lally*FINM 865: Mathematics of Finance (7) L Roberts*Econometrics CoursesQUAN 102: Statistics for Business (526) C Jeffcoat, J Haywood*QUAN 103: Introductory Maths for Business (36) P Proffitt*QUAN 111: Mathematics for Economics and Finance (336) M Khaled*, P ProffittQUAN 201: Applied Economic Statistics (43) J Haywood, M Khaled*QUAN 202: Business and Economic Forecasting (24) A Weiss*, J PootQUAN 301: Econometrics (23) A Weiss*, S YaoQUAN 304: Applied Econometrics (8) A Weiss*, J RandalQUAN 371/FINM 371: Financial Mathematics (26) L Roberts*, C Jeffcoat

Graduate TeachingECON 401: Topics in the Nature of Economic Inquiry (3) P Tompkinson*ECON 402: Advanced Macroeconomic Theory A (13) K H Kim*, V HallECON 403: Advanced Macroeconomic Theory B (12) R Buckle*ECON 404: Advanced Microeconomic Theory A (9) G Guthrie*ECON 405: Advanced Microeconomic Theory B (9) S Yao*ECON 406: Economic Dynamics A (2) J Krawczyk*ECON 407: Economic Dynamics B (0) J Krawczyk*ECON 408: Advanced Econometrics A (10) A Weiss*, Y YuECON 409: Advanced Econometrics B (8) A Weiss*, P Thomson (Statistic Research Associates Ltd)ECON 410: Public Economics A (8) R Stephens* (SBPM), P CalcottECON 411/PUBL 411: Public Economics B (8) P Calcott*, R Stephens, M WallsECON 412: International Economics A (1) P Tompkinson*ECON 413: International Economics B (7) L Hull*


ECON 414/ECHI 401: Theories of Growth and Development (4) J Zhang*ECON 415: Topics in Development Economics (4) J Zhang*ECON 416: Labour Markets (3) J Poot*ECON 417: Topics in Advanced Labour Economics (2) J Poot*ECHI 405: Research Project in New Zealand Economic and Business History (1) G Boyce*ECHI 410: Business History (2) G Boyce*ECHI 413: New Zealand in the World Economy, 1900-80 (1) J Singleton*ECHI 414: Trade and Industry in Asia since 1945 (2) J Singleton*MOFI 401: Options (13) G Guthrie*MOFI 402: Corporate Finance (8) M Lally*MOFI 403: Monetary Economics A (3) S Burnell*MOFI 404: Monetary Economics B (8) A Grimes* (Institute of Policy Studies)MOFI 407: Advanced Investments (2) R Bowden*FINM 467: Actuarial Statistics (5) L Roberts*FINM 470: Introduction to Risk Management and Insurance (9) L Roberts*

Master of Applied Finance CoursesMMAF 501: NZ Capital Markets (25) D BowdenMMAF 502: Corporate Finance (20) R BowdenMMAF 511: International Corporate Finance (22) B JulienMMAF 512: Treasury Management (17) D BowdenMMAF 514: Derivatives (15) G GuthrieMMAF 515: Financial Institutions Management (21) D BowdenMMAF 521: Macroeconomic Processes and Financial Management (19) D BowdenMMAF 522: Law and Finance (21) S McArley (KPMG Legal), P McKenzie QC

Other CoursesMembers of the School of Economics and Finance also taught in the following courses administered by other departments atVictoria University.ARCH 261/BBSC 261: Building Economics (21) J Poot*COML 304: Competition Law (68) G BertramDEVE 501: Development Theory and Practice (10) G Bertram*GBGM 801: Accounting and Finance (27) S Keef*, P Dunmore and B Khanna (SACL)GBGM 803: Economics (19) B H*MAPP 521: Economics (24) C Scott* (SBPM), R BuckleMAPP 522: Economics and Public Policy (25) R Stephens* (SBPM), V HallMAPP 552: Special Topic in Education Policy (7) G HawkeMMBA 540: Asian Business Environment (5) G Boyce*, J SingletonMMCA 401: Methodology (22) P Tompkinson*, G BertramMMPM 503: Economic Principles and Policies for Public Managers (14) J Bethwaite, V Hall*OPRE 358/OPRE 359: Special Topic (23) J Krawczyk*


PhD ThesesClaus, Iris, �Banks and Macroeconomic disturbances under inflation targeting� Supervised by A Grimes

(IPS) and S BurnellCallister, Paul, �Diversity or polarisation: The growth in work-rich and work-poor individuals, families

and communities between 1986 and 1996� Supervised by G HawkeHowell, Bronwyn, �Contracting in non-profit organisations� Supervised by N Quigley (FCA Dean)

and L Evans (NZISCR)Randal, John, �The Constant Elasticity of Variance in the Option Pricing Model� Supervised by P

Thomson (Statistics Research Associates Ltd) and M LallySrzich, Anthony, �Consumer behaviour in social and economic networks� Supervised by S Burnell, L

Evans (NZISCR) and S YaoViets, Dan, �The role and impact of domestic and internationally imposed regulatory controls and

compliance procedures on APEC financial institutions and the resultant national and internationalconsequences for the period 1980-2000� Supervised by A Grimes (IPS) and J Singleton

Masters ThesesCozens, Peter, �An inquiry into Japanese fishing activity in the South Pacific Ocean� Supervised by J

SingletonFraser, Peter, �Economic policy making in the New Zealand Treasury in the early 1980s� Supervised

by J SingletonMason, Grant, �Spot Price Performance and Risk Management in Electricity�, Supervised by L Evans

(NZISCR) and G GuthrieLepper, Larry, �Assessing Information Quality� Supervised by G BoyceMafekeni, Rimasi, �Deregulation of the New Zealand Dairy Board� Supervised by L Evans (NZISCR)Mellsop, James, �Information sharing and the winner�s curse in the New Zealand meat procurement

market� Supervised by L Evans (NZISCR)Papps, Kerry, �Wage determination in local labour markets: theory and evidence for the wage curve in

New Zealand� Supervised by J PootYoung, Angus, �Two countries, one modus operandi: instituting a trans-Tasman central bank�

Supervised by J Singleton and A Grimes (IPS)


MPP Research PapersTod, Linda, �The Effectiveness of Secondary School Student Evaluation of Teacher Performance�,

Supervised by G HawkeMutch, Lisa, �Local Content on New Zealand Radio and Television: why and how should government

increase it? Reconciling economic, regulatory and cultural imperatives� Supervised by G HawkeO�Shea, Sue, �The Right of children with intellect disability to enrol in state secondary schools; the

experience of parents� Supervised by G Hawke


VUW Graduate AwardsRon Dorward, Jennifer Dunmore, Luke Geldermans, Alisha OxleyBernard Edward Murphy Memorial ScholarshipsAwarded to the best eligible graduate/s in Economics proceeding to Honours/Masters study:Natalie YatesCredit Suisse First Boston ScholarshipAwarded to encourage the study of Business Finance, to students enrolled in MOFI 400-level or 300-levelcourses:Lauren WoodfieldABN-AMRO Scholarship in FinanceAwarded to encourage the study of Business Finance, to students enrolled in MOFI 400-level courses:Angela Louise RyderMacquarie New Zealand Scholarships in FinanceAwarded to encourage the study of Business Finance, to undergraduate students intending to proceed toGraduate Study:Richard FrogleyTower Financial Services Group PrizeAwarded to the best student in MOFI 305: InvestmentsLauren WoodfieldJan Whitwell Prize for Monetary and MacroeconomicsAwarded to the best student in ECON 305 and MOFI 303:Daniel Keith TobiasSchool of Economics and Finance Prize Makower McBeath & Co Staff PrizeAwarded to the best student in ECON 140: Awarded to the best student in ECON 130:Tim Benseman Penelope NicholsonThe National Bank of New Zealand Ltd PrizeAwarded to the best student in MOFI 302:Charlotte PongApplied Economics Award:Awarded to the best student in ECON 309 who is going on to study at Honours level:David LawAustralian Institute of Banking & Finance:Awarded to the best student in MOFI 30l:Stephen Hutton

OUTSTANDING STUDENTS


Other Professional Activities

Every year members of the academic staff contribute to a widerange of professional and community organisations. Thissection lists contributions for 1999. Activities include servingon the editorial boards of professional journals, refereeingresearch papers, membership of national and internationaladvisory bodies, and managerial responsibilities.

Dawn BowdenServed as member of Index Committee, New Zealand Stock ExchangeElected as Certified Treasury Professional to membership of NZ Society of Corporate Treasurers Ongoing

liaison with Corporate Treasurers Society in New Zealand and the UKGeoff BertramReferee for Asia and Pacific Viewpoint, New Zealand Economic Papers, Environment and Development

EconomicsGordon BoyceEditorial Board member, Australian Economic History Review, International Journal of Maritime

History, Enterprise and SocietySponsored by the International Commission for Maritime History to organise its session at the

International Economic History Congress, Buenos Ayres, 2002 and a pre-conference in Hull, U.K.,July 2001

Referee for Business History Review, Busines History, Australian Economic History Review andInternational Journal of Maritime History, European Journal of Economic History

Robert A. BuckleMember of the Advisory Committee on Economic Statistics (ACES), Statistics New ZealandCentre for International Research on Economic Tendency Surveys (CIRET), Munich, Germany,

Contributions to Economic Survey InternationalHead, School of Economics and Finance; Member, FCA Faculty Management Team; Member,

Development Studies Project TeamReferee for New Zealand Economic Papers, New Zealand TreasuryGraeme GuthrieReferee for Economic Journal, Journal of Money, Credit, & Banking, New Zealand Treasury


Viv B. HallDirector, Reserve Bank of New Zealand and contributor to the Reserve Bank of New Zealand Non-

executive Directors� written and verbal submissions to the �Independent Review of the Operationof Monetary Policy�

Member of Board of Trustees, New Zealand Institute of Economic Research (Inc.)Member of the VUW Foundation Management Committee for the VUW/RBNZ Professorial Fellowship

in Monetary Economics, and invited participant to June 2000 Monetary Policy WorkshipAdvice to the IMF Mission to New Zealand for the IMF Executive Board�s 2000 Article IV Consultation

with New Zealand, and to the OECD�s 2000 Mission to New Zealand for its Economic Survey ofNew Zealand

Referee for The Economic Record and Quality Assurance Advice to New Zealand TreasuryGary HawkeChair, Education Review Office Advisory Council on Quality in EducationMember, Superannuation 2000 Task ForceQuality Assurance Advice - to Ministry of Education, Ministry of Foreign Affairs and Trade, Reserve

Bank (APEC officials committee), TreasuryMember, Ministry of Foreign Affairs and Trade, Advisory Committee on Research Grants for projects

on �New Zealand�s Place in the World�Senior appointments panel, Department of Prime Minister & CabinetDeputy Chair, Board of New Zealand Pacific Economic Co-operation Council (NZPECC)University representative, Standing Committee, NZ Institute of International AffairsRoyal Society of New Zealand, convener Social Sciences Fellowships Selections PanelNew Zealand Institute of Public Administration; chair of seminar on Crown Entities reform, 20 September 2000Member, Board of Trustees of the Centre for New Zealand Music (SouNZ)Leader of NZ Committee for Pacific Economic Co-operation Council to Co-ordinating Group and Standing Council meetings, Jarkarta, October 2000Leslie HullMember of the VUW Foundation Management Committee for the VUW/RBNZ Professorial Fellowship

in Monetary EconomicsJacek KrawczykReferee for International Game Theory Review, Journal of Mathematical Analysis and Applications,

Journal of the Franklin InstituteMartin LallyReferee for Pacific Accounting Review, New Zealand Investment AnalystJacques PootPolicy Advisor to Ministry of Social Policy and Ministry of Foreign Affairs and Trade: Review of

trans-Tasman travel and Australia-New Zealand social security arrangementsTrustee, New Zealand Netherlands FoundationPacific Editor, Papers in Regional ScienceMember of Editorial Board, Studies in Regional Science and Australasian Journal of Regional StudiesReferee for Annals of Regional Science, Construction Management and Economics, Journal of Regional

Science, Networks and Spatial Economics


John SingletonEditor of Victoria Economic CommentariesReferee for Australian Economic History ReviewPaul TompkinsonReferee for Journal of Economic Psychology, Journal of Economic Behaviour and Organisation, The

Labour Market BulletinAndrew WeissAssociate Editor: Econometric Theory, Econometric Reviews, and Journal of EconometricsReferee for Journal of EconometricsShuntian YaoReferee for Journal of Comparative Economics, and New Zealand Economic PapersJie ZhangReferee for German Economic Review, Journal of Macroeconomics, and Economic Inquiry


KNIGHT�S MOVE 2001

New Career Directions in ....

The Master of Applied FinanceA national post-experience programme in

block release mode

l funds management l corporate bankingl investment banking l corporatetreasury l corporate financialplanning l investmentadvising l financial controll stockbroking l derivatives

l financial communications l government


The Institute for the Study of Competition and Regulation meets the need for research into New Zealand’sbusiness and regulatory environments following the economic reforms of the 1980s and early 1990s.

It conducts demonstrably high quality, empirical and conceptual research on competition and regulatoryissues. It has a broad mandate to conduct research in any area of organisations and markets that are deter-

mined to be of interest. The central area of expertise is economics but other subjects, such as law, areimportant to many of its projects.

The research conducted is of direct relevance to companies and individuals as well as to policy makinggovernment bodies. Seminars on research projects are also undertaken.

Funding for the Institute’s work comes from its membership base of private and public corporations. All of theInstitute’s research outputs are available on its website located at

www.iscr.org.nz