Research Discussion Paper – RDP 2010-02 Learning in an Estimated Small Open Economy Model

Contents

• Introduction
• A Small Open Economy DSGE Model
• Estimating the Small Open Economy Model
• Results
• Longer Sample: Break in the Gain Parameter
• Conclusion
• Appendix A: Log Linear Equations
• Appendix B: Data Description and Sources
• Appendix C: Robustness Checks
• References

We would like to thank Christopher Kent, Mariano Kulish, Kristoffer Nimark, Adrian Pagan and Tim Robinson for helpful comments and insightful discussions. Responsibility for any remaining errors rests with us. The views expressed in this paper are those of the authors and are not necessarily those of the Reserve Bank of Australia.