Policy Analysis with the MSG2 Model
AbstractThis paper uses a dynamic intertemporal macroeconomic model of the world economy to examine the macroeconomic consequences for a small economy, such as Australia, of shocks in the world economy. The model, called the MSG2 (McKibbin-Sachs Global) model, is based on the assumption that agents maximise objective functions subject to intertemporal budget constraints. Allowance is also made for the existence of various rigidities in labour markets and imperfections in the ability of agents to borrow and lend. The model is parameterized based on techniques from computable general equilibrium models and standard macroeconomic models. It is used to examine the impact on Australia of fiscal and monetary policies in the U.S. and Japan as well as the transmission of policy changes within the Australian economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Reserve Bank of Australia in its series RBA Research Discussion Papers with number rdp8712.
Date of creation: Nov 1987
Date of revision:
Other versions of this item:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Tony Hall & Jan Jacobs & Adrian Pagan, .
"Macro-Econometric System Modelling @75,"
NCER Working Paper Series
95, National Centre for Econometric Research.
- Martin Fukac & Adrian Pagan, 2009.
"Structural macro-wconometric modelling in a policy environment,"
Reserve Bank of New Zealand Discussion Paper Series
DP2009/16, Reserve Bank of New Zealand.
- Martin Fukac & Adrian Pagan, 2009. "Structural Macro-Econometric Modelling in a Policy Environment," NCER Working Paper Series 50, National Centre for Econometric Research.
- Martin Fukac & Adrian Pagan, 2010. "Structural macro-econometric modelling in a policy environment," Research Working Paper RWP 10-08, Federal Reserve Bank of Kansas City.
- Rae, David, 1996. "NBNZ-DEMONZ: A dynamic equilibrium model of New Zealand," Economic Modelling, Elsevier, vol. 13(1), pages 91-165, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paula Drew).
If references are entirely missing, you can add them using this form.