Research Discussion Paper – RDP 2005-11 A Small Model of the Australian Macroeconomy: An Update

Contents

• Introduction and Overview
• Equations
• Remaining Components of the Model
• Simulations
• Summary
• Appendix A: Calculating Potential Output
• Appendix B: Econometric Issues
• Appendix C: Adjusting for the Balassa-Samuelson Effect
• Appendix D: Glossary and Data
• References

Since the publication of Beechey et al (2000), many people have played a part in the further development of the model of the Australian economy described there. Particular thanks are due to Kenneth Leong, Tim Robinson, Marileze van Zyl and Thomas Walker for their direct contributions over recent years, including the instigation or implementation of many of the changes to the model described here. The views expressed in this paper are, however, solely those of the authors, and should not be attributed either to these individuals or to the Reserve Bank of Australia.