The authors wish to thank an anonymous referee of this journal for several helpful comments. This paper draws extensively on “Enrolments in Economic Studies in New Zealand Universities”, Discussion Paper No. 99.06, Department of Applied and International Economics, Massey University, June 1999. The authors are grateful to all those heads of department who completed the survey. In January 2000 the Auckland Institute of Technology will become the Auckland University of Technology and thus the eighth NZ university.