Modelling the Australian Macroeconomy

The aim of this subject is to provide students with a solid grounding in modern applied macroeconomic modelling. There are two components to the course. The first is theoretically orientated and builds on New Keynesian Dynamic Stochastic General Equilibrium (DSGE) models used to analyse the business cycle effects of macroeconomic policies. The second component is empirical. It will focus on the estimation of DSGE and the estimation and identification of Structural Vector Auto-Regressions (SVARs). Attention will be devoted to core components of a closed-economy frameworks as well as small-open economy models. Applications to Australia will be discussed. This subject also provides students with the experience of carrying out a research-based project on a specific topic in applied econometrics.