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1 Earlier versions of this paper were presented at: (i) Economics Society of Australia (Tasmanian Branch), Hobart, 18 March 2009; (ii) Staff Developmental Workshop, School of Economics and Finance, La Trobe University, 23 April 2009; (iii) Seminar, University of Canterbury, Department of Economics, New Zealand, 1 May 2009; (iv) Seminar, University of Queensland, School of Economics, 22 May 2009; and (v) 38th Australian Conference of Economists, University of Adelaide, 28–30 September 2009. The authors would like to thank the various participants of the seminars and workshops for their comments and suggestions, as well as Seamus Hogan, Michael Smiddy, Ray Stefani, and two anonymous reviewers.
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