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Working Paper – WP/14/04- A medium-sized open economy DSGE model of South Africa

Author

Listed:
  • Stan du Plessis
  • Ben Smit
  • Rudi Steinbach

Abstract

In this paper a dynamic stochastic general equilibrium (DSGE) model is specified for the South African economy. Nominal and real frictions help to make the model estimable, and is then estimated on South African and global data using Bayesian techniques. The empirical fit of the model is validated through a forecast comparison with private sector consensus forecasts. The model is found to outperform the inflation forecasts of private sector economists.

Suggested Citation

  • Stan du Plessis & Ben Smit & Rudi Steinbach, 2014. "Working Paper – WP/14/04- A medium-sized open economy DSGE model of South Africa," Working Papers 6319, South African Reserve Bank.
  • Handle: RePEc:rbz:wpaper:6319
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    File URL: http://www.resbank.co.za/Lists/News%20and%20Publications/Attachments/6319/WP1404.pdf
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    References listed on IDEAS

    as
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