Extending a SVAR model of the Australian economy

Mardi Dungey*, Adrian Pagan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

50 Citations (Scopus)

Abstract

Dungey and Pagan (2000) present a SVAR model of the Australian economy which models macroeconomic outcomes as transitory deviations from a deterministic trend. In this paper we extend that model in two directions. First, we relate it to an emerging literature on Dynamic Stochastic General Equilibrium modelling of small open economies. Second, we allow for both transitory and permanent components in the series and show how this modification has an impact on the design of macroeconomic models.

Original languageEnglish
Pages (from-to)1-20
Number of pages20
JournalEconomic Record
Volume85
Issue number268
DOIs
Publication statusPublished - 2009

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