Inside a modern macroeconometric model. A guide to the Murphy model. With a contribution by Nicholas Conron (Q1899208)

The book gives a detailed description of the structure and workings of a 100-equation quarterly macroeconometric model of the Australian economy, model designed for policy analysis and forecasting. Distinguishing features (i.a. relationships to macro- and microparadigms, long-run properties) and principal mechanisms (for instance the exchange rate mechanisms) are laid out. The structural form (i.e. the basic equations in their original specification) of the model are described in detail: wage behaviour, labour force participation, private consumption behaviour (including house rentals), enterprise behaviour (investment, employment), imports-exports (including non-commodity exports), inventories, price dynamics, public sector and financial markets. Simulations are run on monetary and fiscal shocks.