diff --git a/Gali_2015/Gali_2015_chapter_5_commitment.mod b/Gali_2015/Gali_2015_chapter_5_commitment.mod index acc7b39..bdb72e5 100644 --- a/Gali_2015/Gali_2015_chapter_5_commitment.mod +++ b/Gali_2015/Gali_2015_chapter_5_commitment.mod @@ -105,7 +105,7 @@ model(linear); #psi_n_ya=(1+varphi)/(siggma*(1-alppha)+varphi+alppha); %defined on page 62 [name='Definition efficient interest rate, below equation (7)'] r_e=siggma*(y_e(+1)-y_e)+(1-rho_z)*z; -[name='Definition efficient output'] +[name='Definition efficient output, e.g. page 155'] y_e=psi_n_ya*a; [name='Definition linking various output gaps, middle page 128'] y_gap=x+(y_e-y_nat); diff --git a/Gali_2015/Gali_2015_chapter_5_discretion.mod b/Gali_2015/Gali_2015_chapter_5_discretion.mod index 58a0132..9ff7e6b 100644 --- a/Gali_2015/Gali_2015_chapter_5_discretion.mod +++ b/Gali_2015/Gali_2015_chapter_5_discretion.mod @@ -115,7 +115,7 @@ model(linear); #psi_n_ya=(1+varphi)/(siggma*(1-alppha)+varphi+alppha); %defined on page 62 [name='Definition efficient interest rate, below equation (7)'] r_e=siggma*(y_e(+1)-y_e)+(1-rho_z)*z; -[name='Definition efficient output'] +[name='Definition efficient output, e.g. page 155'] y_e=psi_n_ya*a; [name='Definition linking various output gaps, middle page 128'] y_gap=x+(y_e-y_nat); @@ -125,8 +125,8 @@ pi=betta*pi(+1)+kappa*x + u; x=x(+1)-1/siggma*(i-pi(+1)-r_e); [name='Definition real interest rate'] r_real=i-pi(+1); -[name='Definition natural output, eq. (20)'] -y_nat=psi_n_ya*a; +[name='Implicit definition of natural output, following from definition of u'] +u=kappa*(y_e-y_nat); [name='Definition output gap'] y_gap=y-y_nat; [name='cost push shock, equation (3)']