Economies are large, complex and evolving so economic models need to be also. This project will 1) broaden the range of models that can be used for macroeconomic analysis to include models that are more realistic but difficult to compute. 2) Efficient computational methods will therefore be developed for these models. This innovative approach will then be applied to two applications at the forefront of current macroeconomic research (effects of noisy productivity signals on business cycles; effects of fiscal policy shocks). The project outputs will be broadly applicable to both policymakers and applied macroeconomists and should provide widespread and significant benefits by improving policy and boosting Australia’s comparative advantage.

Project members