Research Discussion Paper – RDP 19 Prospectus for RBA2


This paper amplifies earlier proposals [6 ]about the intended structure of RBA2, and ought to be read in conjunction with the attached list of equations. Because most of the estimation work is not final, and some of it scarcely underway, the list of equations and any comments on the details of model structure are very tentative. Even at this early stage, however, it is likely to be helpful to attempt to fit the prospective bits together to see whether the model is likely to have sensible balance and causal mechanisms.

The next five sections of the paper deal with the eighteen sectors of model, divided into five main groups.