Research Discussion Paper – RDP 2015-07 A Multi-sector Model of the Australian Economy Abstract

This paper describes the dynamic stochastic general equilibrium (DSGE) model currently in use at the Reserve Bank of Australia. The model extends previous DSGE models of the Australian economy by incorporating multiple production sectors, including a resource sector. We estimate the model, describe its dynamic properties, illustrate its use in scenario analysis and use the model to identify the sources of Australian business cycle fluctuations.