A Bayesian analysis of stochastic volatility (SV) models using the class of symmetric scale mixtures of normal (SMN) distributions is considered. In the face of non-normality, this provides an appealing robust alternative to the routine use of the normal distribution. Specific distributions...

In this paper, a dynamic general equilibrium (DGE) model of growth-inequality relationships, with missing credit markets, knowledge spillover and self-employed agents, is calibrated to New Zealand data. The model explains how two distinct policy shocks involving redistribution and immigration...

Crucial data on productivity was omitted from my article titled, “Why Haven't Economic Reforms Increased Productivity Growth in New Zealand?. The data consist of GDP per hour and real earnings per hour as two alternative measures of productivity. More importantly, they are crucial to...

Earning regressions often reveal time-invariant industry premiums. Competitive theories explain them by referring to unobservable characteristics or compensating differentials. Non-competitive theories do the same by using efficiency wage, insider-outsider and rent sharing hypotheses. Those...

Productivity, measured by output per hour, grew by less than one percent per annum in post reform New Zealand. During the same period productivity grew at a rate two times faster in relatively protected Australia and one and half time faster in the “free market” economy of the US. This...

We present a neo-classical model that explores the determinants of growth-inequality correlation and attempts to reconcile the seemingly conflicting evidence on the nature of the growth-inequality relationship. The initial distribution of human capital determines the long-run income distribution...