A Sectoral Model of the Australian Economy

Jeremy Lawson and Daniel Rees
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Jeremy Lawson: Reserve Bank of Australia

RBA Research Discussion Papers from Reserve Bank of Australia

Abstract: We use a structural vector autoregression (SVAR) to examine the effect of unanticipated changes in monetary policy on the expenditure and production components of GDP over the period from 1983 to 2007. We find that dwelling investment and machinery & equipment investment are the most interest-sensitive expenditure components of activity, and that construction and retail trade are the most interest-sensitive production components of activity. We subject our model to a range of sensitivity checks and find that our results are robust to omitted variables, alternative identification schemes and the time period over which our model is estimated.

Keywords: Australian economy; sectoral macroeconomic model; monetary policy (search for similar items in EconPapers)
JEL-codes: E32 E52 (search for similar items in EconPapers)
Date: 2008-04
New Economics Papers: this item is included in nep-cba and nep-mac
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:rba:rbardp:rdp2008-01

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