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I have 2 questions on the IMF MULTIMOD Mark3 model that they publish on the IMF site http://www.imf.org/external/np/res/mmod/mark3/html/us.htm The first question is the steady state version of the model. There are several equations in the Steady State version of the MULTIMOD model that have a 0 for the left hand side of the equation. I've listed them below for the US model. What is the function of these equations? They do not have an endogenous variable they can be solved for. Each of the terms are either defined by another equation, are a parameter, or are exogenous, rather than having an endogenous variable the equation is solved for. Does this just set the variables like US_PGNP to 0? 4: Price level (GNP deflator) : Steady State Version (SS_US_PGNP) 0 * LOG(US_PGNPNO) = US_GAMMA / 100 * (US_NLIN - US_UNR) / (US_UNR - US_PHI)+0 * US_LAMBDA * US_DELTA_PI + RES_US_PGNP 40: Average tax rate : Steady State Version (SS_US_TRATE) 0 = TAU1 * (US_B / (US_GNP * US_PGNP) - US_BT_GDP_RAT) + RES_US_TRATE 45: Money supply reaction function - short-term interest rate : Steady State Version (SS_US_RS) 0 = US_RS1PERM * LOG(US_MT / US_M) / US_M2 + US_RS2 * LOG(GR_ER / US_ER / US_PAR) + RES_US_RS + 0 * US_RS1 * US_RS_EXOG * US_RSCON * US_RSCON2 The second question is the Rational Expectations version of the model. Equation 18 in the US model is 18: Change in investment relative to the capital stock (US_K) US_INVEST / US_K(-1) - (US_DELTA_SS + GREAL_SS - 1) = US_K1 * (US_WK / US_K(-1)-1) + US_K2 * (US_WK(-1) / US_K(-2)-1) + RES_US_K The variable US_K only appears with a lag, so I'm guessing the equation does not predict the previous time periods value. What is the dependent variable? Thanks in Advance
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