Repository of macro models
This repository contains descriptions of macro-models which relate to papers published or forthcoming in Economic Modelling
The “Traded-Nontraded Goods” Model for New Zealand
Title of Paper: An Empirical, Small Scale “Traded-Nontraded Goods” Model for New Zealand
Author: Selim Cagatay, Department
of Economics, Hacettepe University, Turkey and
Ralph Lattimore, New Zealand Institute of Economic Research,
Wellington, New Zealand.
Vol./Issue No.: scheduled for 18/-
Short description: The empirical “traded-nontraded goods” model introduced in this study is a 13-equation small scale model which was built to analyse the effect of various policy variables on the variation of the real exchange rate, and resulting impacts on the industrial distribution of domestic supply, demand and employment. The empirical model specifies “reduced-form” equations for both real exchange rate for exportables and importables, as a function of demand side fundamentals, border measures and external terms of trade. The economy is disaggregated into exportables (collected under primary agricultural, and primary processing sector and other exportables sector), importables and non-tradable industries. The impact of changing real exchange rates on the industrial distribution of supply, demand and employment are estimated by using "structural-form" supply and demand functions. The model provides a basis for dynamic deterministic policy simulation particularly to see impacts of variations in the timing and sequencing of various policy instruments.
JEL classification: E61, F14, O56
Keywords: New Zealand economic reforms, policy sequencing and timing, real exchange rate, tradable-non tradable model
Country: New Zealand
Linkage address: http://yunus.hacettepe.edu.tr/~selim/
Disclaimer: Responsibility for the full model structures of the models in this repository rests solely with the authors.