Why haven't economic reforms increased productivity growth in New Zealand?Footnote¹

An earlier draft of this paper was presented at the 2003 North American Winter Meetings of the Econometric Society held in Washington, D.C. I thank without implicating Lutz Hendricks, who discussed the paper at the meeting, Richard Rogerson, Steve Parente and other participants. I am also grateful to receive financial support from the Research Committee of the Auckland Business School, research assistance from Hae‐Min (Kate) Kim of the University of Auckland, earnings per hour data from Department of Labour sent by Weshah Razzak and comments from the Editor and an anonymous referee.

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• Department of Economics, The University of Auckland, Private Bag 92019, Auckland. New Zealand. E‐mail: [email protected].
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