The industry premium: What we know and what the New Zealand data say

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• I thank Alan Rogers, Tim Maloney, Sholeh Maani and Ian King of the University of Auckland, John Gibson, Les Oxley and other May 2000 seminar participants of the Economics Department of the University of Waikato, Adrian Pagan of the Australian National University and the participants of the 1999 Summer Meeting of the New Zealand Econometric Society Group (NZESG) and two anonymous referees for offering valuable comments on an earlier draft of this paper. I received research assistance from Richard Downing and Karim Emami Ijzeh, amicable assistance from Pat Coope of the Statistics New Zealand. Many thanks also to Leine Hunter of the Reserve Bank of New Zealand for painstaking review of this paper. I acknowledge the Marsden Grant #UOA618 for partially funding this research. The usual disclaimer applies. Department of Economics, The University of Auckland, Private Bag 92019, Auckland, New Zealand. e‐mail: [email protected]
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