An aggregate consumption function is estimated for New Zealand from 1974 to 1995. The instability of previous New Zealand models is addressed by using a broad measure of net wealth and a theoretically more sound measure of income. Households are assumed to be forward-looking, but only partly so....

This paper models the determinants of house prices in New Zealand at an aggregate and regional level. We model the demand for housing as part of households ' overall consumption decision and combine it with a supply curve and an aggregate consumption function. Dynamics are captured through an...

This paper confirms the forward premium puzzle, or the failure of uncovered interest parity, in New Zealand's foreign exchange market. The rejection of the risk-neutral rational expectations hypothesis is traced to two sources. First, there is evidence of a time-varying and possibly...