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Sources of macroeconomic fluctuations in the New Zealand economy: a real business cycle perspective

dc.contributor.authorConway, Paul Douglas
dc.date.accessioned2011-04-11T01:46:01Z
dc.date.accessioned2022-10-26T00:59:12Z
dc.date.available2011-04-11T01:46:01Z
dc.date.available2022-10-26T00:59:12Z
dc.date.copyright1997
dc.date.issued1997
dc.description.abstractThe primary objective of this thesis is to assess possible sources of macroeconomic fluctuations in the New Zealand economy, from the perspective of open economy real business cycle theory. Based on a review of the relevant literature, two structural vector autoregressive models are specified. Both models consist of the following macroeconomic variables: foreign output, the foreign real interest rate, the terms of trade, domestic output, domestic employment hours and the domestic real interest rate. The predominant difference between the two models is in the way in which business cycle fluctuations are empirically defined. The models measure business cycle fluctuations using the first difference and Hodrick-Prescott (1980) filters respectively. The mix of variables included in the models allow the relative importance of foreign and domestic shocks to be evaluated. No previous SVAR study of the New Zealand macro-economy has been conducive to this delineation. Shocks emanating from the foreign sector are found to explain a considerable share of New Zealand business cycle variability, particularly over the longer term. Both models are initially estimated over the period 1977:02 to 1996:01. However, to assess the sensitivity of simulation results to the removal of nominal interest rate and other controls and the floating of the New Zealand dollar, the models are also estimated over the sub-sample period 1985:02 to 1996:01. The truncation of the sample period is found to exert an important influence on the empirical conclusions of the thesis.en_NZ
dc.formatpdfen_NZ
dc.identifier.urihttps://ir.wgtn.ac.nz/handle/123456789/23854
dc.languageen_NZ
dc.language.isoen_NZ
dc.publisherTe Herenga Waka—Victoria University of Wellingtonen_NZ
dc.rights.holderAll rights, except those explicitly waived, are held by the Authoren_NZ
dc.rights.licenseAuthor Retains Copyrighten_NZ
dc.rights.urihttps://www.wgtn.ac.nz/library/about-us/policies-and-strategies/copyright-for-the-researcharchive
dc.subjectMacroeconomicsen_NZ
dc.subjectBusiness cyclesen_NZ
dc.subjectEconomic historyen_NZ
dc.titleSources of macroeconomic fluctuations in the New Zealand economy: a real business cycle perspectiveen_NZ
dc.typeTexten_NZ
thesis.degree.disciplineEconomicsen_NZ
thesis.degree.grantorTe Herenga Waka—Victoria University of Wellingtonen_NZ
thesis.degree.levelMastersen_NZ
vuwschema.type.vuwAwarded Research Masters Thesisen_NZ

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