Research Discussion Paper – RDP 2018-04 DSGE Reno: Adding a Housing Block to a Small Open Economy Model

Contents

• Introduction
• The Model
• Estimation
• The Transmission of Monetary Policy
• The Transmission of Housing Shocks
• Housing and Australia's Post Mining Boom Transition
• Conclusion
• Appendix A: Data Sources for Estimation
• Appendix B: Transmission of Commodity Price Shocks
• Appendix C: Transmission of Exchange Rate Shocks
• References

The authors would like to thank Daniel Rees, Tim Robinson, Gian-piero Lovicu, Jarkko Jääskelä, John Simon, participants of the Sydney Macro Reading Group Workshop and seminar participants at the Australian Treasury and the Australian National University for helpful comments. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia. The authors are solely responsible for any errors.