International shocks on Australia: The Japanese effect
Although Australia has an equivalently large trading relationship with Japan and the US, current macro models often incorporate only US variables in the external sector of Australia. This paper explores the consequences of including both US and Japanese effects in the international sector of a SVAR model of Australia. The results indicate the significance of the Japanese effects. Excluding Japan results in an overstatement of the impact of US based shocks on the Australian economy. When Japan...[Show more]
|Collections||ANU Research Publications|
|Source:||Australian Economic Papers 42.2 (2003): 158–182|
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