Factor income shares, the banking sector, the exchange rate, and the New Zealand current account deficit

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• Geoff Bertram, School of Economics and Finance, Victoria University of Wellington. Preliminary work on this project began while I was a visiting fellow at the New Zealand Institute of Economic Research in late 2000. Earlier versions of this paper were presented to the Symposium on Sustainable and Excessive Current Account Deficits, Victoria University of Wellington, December 2001, and the Australasian Macroeconomics Workshop, Wellington, April 2002. I am grateful to participants at those sessions, to Dennis Rose and Peter Gardiner for help with data and analysis, and to colleagues at NZIER and Victoria University and two anonymous referees for helpful comments. Remaining errors are my own.
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