Research Discussion Paper – RDP 2015-07 A Multi-sector Model of the Australian Economy

Contents

• Introduction
• The Model
• Estimation
• The Dynamics of the Estimated Model
• The Model in Action: Scenario Analysis
• What has Driven the Australian Business Cycle?
• Conclusion
• Appendix A: The Log-linearised Model
• Appendix B: Data Sources and Definitions
• Appendix C: Posterior and Prior Distributions
• Appendix D: Smoothed Shocks
• References

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We would like to thank James Hansen, Adrian Pagan, Jarkko Jääskelä, Bruce Preston, Adam Gorajek, John Simon, Mariano Kulish and Christopher Kent for comments and helpful suggestions. Penelope Smith would like to thank the Bank of Canada for their hospitality during the early stages of this project.