RDP 2008-07: A Medium-scale Open Economy Model of Australia Appendix C: Supplementary Tables

Jarkko Jääskelä and Kristoffer Nimark

December 2008

Table C1: Calibrated Parameters
Parameter
β 0.999
α 0.290
ωc 0.200
ωi 0.500
δ 0.013
σa 0.049
σl 1.000
σq 10.620
ν 0.950
Al 7.500
Aq 0.380
ρν 0.000
λw 1.050
Table C2: Constant Weight Prior Posterior Distributions – Structural Parameters
Parameter Posterior
Mean Std 5% 95%
Price stickiness
ξw 0.706 0.124 0.516 0.929
ξd 0.985 0.021 0.940 0.999
ξm,c 0.743 0.066 0.618 0.834
ξm,i 0.468 0.165 0.178 0.730
ξx 0.829 0.148 0.528 0.992
ξe 0.774 0.040 0.699 0.833
Indexation
κw 0.921 0.069 0.777 0.995
κd 0.931 0.048 0.842 0.984
κm,c 0.124 0.105 0.008 0.334
κm,i 0.181 0.193 0.010 0.645
κx 0.060 0.045 0.004 0.147
Mark-ups
λd 7.485 0.250 7.055 7.893
λm,c 2.725 0.198 2.370 2.993
λm,i 3.259 0.371 2.841 4.151
Investment friction and habits
Inline Equation 4.355 0.270 3.770 4.660
b 0.825 0.063 0.719 0.935
Substitutions of elasticity
ηc 1.179 0.127 1.020 1.429
ηi 1.925 0.232 1.524 2.264
ηf 1.149 0.112 1.011 1.372
Risk premium
Inline Equation 0.002 0.001 0.000 0.003
Technology growth
μz 1.001 0.001 1.000 1.002
Monetary policy
ρR 0.889 0.026 0.841 0.925
rπ 2.404 0.153 2.147 2.649
rΔπ 0.222 0.087 0.082 0.364
rx 0.009 0.010 −0.004 0.027
ry 0.016 0.012 −0.002 0.037
rΔy 0.043 0.026 0.000 0.087
Table C3: Constant Weight Prior Posterior Distributions – Exogenous Processes
Parameter Posterior
Mean Std 5% 95%
Exogenous processes – AR(1) coefficients
Inline Equation 0.927 0.032 0.868 0.969
ρε 0.869 0.052 0.780 0.950
ρϒ 0.246 0.159 0.031 0.550
Inline Equation 0.879 0.121 0.627 0.993
Inline Equation 0.949 0.049 0.837 0.993
Inline Equation 0.127 0.089 0.013 0.304
Inline Equation 0.845 0.072 0.725 0.931
Inline Equation 0.993 0.006 0.981 0.999
Inline Equation 0.064 0.053 0.004 0.163
Inline Equation 0.086 0.067 0.007 0.216
Inline Equation 0.560 0.116 0.407 0.783
ρpcom 0.972 0.018 0.935 0.992
ρcom 0.996 0.032 0.990 0.999
Exogenous processes standard deviations (×10−2)
Inline Equation 0.133 0.033 0.085 0.193
σε 1.484 0.371 0.915 2.133
σϒ 1.479 0.272 1.017 1.912
Inline Equation 0.061 0.042 0.005 0.140
Inline Equation 0.076 0.025 0.045 0.132
Inline Equation 0.397 0.054 0.310 0.492
Inline Equation 0.463 0.208 0.155 0.842
Inline Equation 0.062 0.023 0.021 0.098
Inline Equation 0.240 0.160 0.089 0.552
Inline Equation 7.291 2.990 4.041 13.552
Inline Equation 4.562 1.267 2.997 7.055
σr 0.021 0.016 0.002 0.051
Inline Equation 0.526 0.141 0.306 0.757
σcom 2.263 0.217 2.027 2.736
σpcom 4.810 0.741 3.675 6.191