A Structural Model of Australia as a Small Open Economy
Year: 2009
Type: article
Abstract: This paper sets up and estimates a structural model of Australia as a small open economy using Bayesian techniques. Unlike other recent studies, the paper shows that a small micro‐founded model can capture the open economy dimensions quite well. Specifically, the model attributes a substantial fraction of the volatility of domestic output and inflation to foreign disturbances, close to what is suggested by unrestricted VAR studies. The paper also investigates the effects of various exogenous shocks on the Australian economy.
Source: Australian Economic Review
Author: Kristoffer P. Nimark
Institution: Reserve Bank of Australia
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2005444572