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Aggregate investment in New Zealand pre-and post-restructuring

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The New Zealand economy has undergone a good deal of micro-economic and macro-economic reform in pursuit of higher economic growth. Investment is one of very few variables robustly associated with growth. We develop an eclectic model of investment demand and apply it to New Zealand data, concluding that, since restructuring began in 1984, the variables change in income and change in the real after-tax interest rate have become positively associated with investment.

Document Type: Research Article


Publication date: March 1, 1999

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