A Structural Model of Australia as a Small Open Economy

  title={A Structural Model of Australia as a Small Open Economy},
  author={Kristoffer P. Nimark},
  • Kristoffer P. Nimark
  • Published 2009
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 microfounded 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… CONTINUE READING

From This Paper

Figures and tables from this paper.


Publications referenced by this paper.
Showing 1-10 of 15 references

Can structural open economy models account for the influence of foreign disturbances

A. Justiano, B. Preston
View 6 Excerpts
Highly Influenced

Bayesian Analysis of DSGE Models

Frank Schorfheide
View 1 Excerpt

Can information heterogeneity explain the exchange rate determination puzzle?

P. Bacchetta, E. van Wincoop
American Economic Review, • 2006

Econometric issues arising from DSGE models’, unpublished manuscript, Australia

M. Fukac, A. Pagan, V. Pavlov

Uncovering the hit-list for small inflation targeters: A Bayesian structural analysis’, Reserve Bank of New Zealand Discussion Paper DP 2006/09, Wellington

T. Kam, K. Lees, P. Liu

A Bayesian Look at New Open Economy Macroeconomics

Thomas Lubik, Frank Schorfheide
View 1 Excerpt

Credit and monetary policy: An Australian SVAR

L. Berkelmans
Reserve Bank of Australia • 2005
View 1 Excerpt

Recursive Methods for Linear Economies, University of Chicago and New York University

L. Hansen, T. Sargent
View 1 Excerpt

Sticky price in the euro area: A summary

L. J. Alvarez, E. Dhyne, +8 authors J. Vilmunen
View 2 Excerpts

Similar Papers

Loading similar papers…