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The Japan Model

70: Consumer price index (JA_CPI)
DEL(1: LOG(JA_CPI)) =
JA_CPI1 * DEL(1: LOG(JA_PIM)) + JA_CPI2 * DEL(1: LOG(JA_PGNP)) + (1 - JA_CPI1 - JA_CPI2) * LOG(JA_CPI(-1) / JA_CPI(-2)) + RES_JA_CPI

70: Consumer price index : Steady State Version (SS_JA_CPI)
DEL(1: LOG(JA_CPI)) =
DEL(1: LOG(JA_PGNP))+0 * (JA_CPI1 + JA_CPI2) + RES_JA_CPI

71: Unemployment rate (JA_UNR_A)
JA_UNR_A =
JA_UNR_FE + JA_UNR_1 * 100 * LOG(JA_GDP / JA_GDP_FE) + JA_UNR_2 * (JA_UNR(-1) - JA_UNR_FE(-1)) + RES_JA_UNR_A

71: Unemployment rate : Steady State Version (SS_JA_UNR_A)
JA_UNR_A =
JA_UNR_FE - 100 * LOG(JA_GDP / JA_GDP_FE) + RES_JA_UNR_A + JA_UNR_1 * JA_UNR_2 * 0

72: Unemployment rate (restricting the value to be above zero) (JA_UNR)
JA_UNR =
MAX(JA_UNR_A,0.1)

72: Unemployment rate (restricting the value to be above zero) : Steady State Version (SS_JA_UNR)
JA_UNR =
JA_UNR_A

73: Price level (GNP deflator) (JA_PGNP)
DEL(1: LOG(JA_PGNPNO)) =
JA_LAMBDA * (JA_DELTA_PI * DEL(1: LOG(JA_PGNPNO(1))) + (1 - JA_DELTA_PI) * DEL(1: LOG(JA_PGNPNO(-1)))) + (1 - JA_LAMBDA) * DEL(1: LOG(JA_PGNPNO(-1))) + JA_GAMMA / 100 * (JA_NLIN - JA_UNR) / (JA_UNR - JA_PHI) + RES_JA_PGNP

73: Price level (GNP deflator) : Steady State Version (SS_JA_PGNP)
0 * LOG(JA_PGNPNO) =
JA_GAMMA / 100 * (JA_NLIN - JA_UNR) / (JA_UNR - JA_PHI)+0 * JA_LAMBDA * JA_DELTA_PI + RES_JA_PGNP

74: Inflation (JA_INFL)
JA_INFL =
JA_MGROW / GREAL

74: Inflation : Steady State Version (SS_JA_INFL)
JA_INFL =
JA_MGROW / GREAL

75: Labor force growth (JA_DLLF)
JA_DLLF =
LOG(JA_LF / JA_LF(-1))

75: Labor force growth : Steady State Version (SS_JA_DLLF)
JA_DLLF =
LOG(JA_LF / JA_LF(-1))

76: Real GDP growth (JA_DLGDP)
JA_DLGDP =
LOG(JA_GDP / JA_GDP(-1))

76: Real GDP growth : Steady State Version (SS_JA_DLGDP)
JA_DLGDP =
LOG(JA_GDP / JA_GDP(-1))

77: Personal household expenditure (JA_C)
JA_C =
JA_C_DI + JA_C_PI

77: Personal household expenditure : Steady State Version (SS_JA_C)
JA_C =
JA_C_DI + JA_C_PI

78: Marginal propensity to consume (JA_MPC)
JA_MPC =
1 / JA_MPCINV

78: Marginal propensity to consume : Steady State Version (SS_JA_MPC)
JA_MPC =
JA_RSR * (1-1 / JA_SIGMA) + RES_JA_MPC / JA_SIGMA + JA_PROB

79: Marginal propensity to consume - inverse (JA_MPCINV)
JA_MPCINV(1) =
JA_MPCINV - 1 - ((1 - JA_SIGMA) * (JA_RSR + JA_PROB) - (RES_JA_MPC + JA_PROB)) * JA_MPCINV / JA_SIGMA

79: Marginal propensity to consume - inverse : Steady State Version (SS_JA_MPCINV)
JA_MPCINV =
1 / JA_MPC

80: Real human wealth - young (JA_WH1)
JA_WH1(1) =
JA_WH1 * (1 + JA_RSR + JA_ALPHA1 + RES_JA_WH1 + JA_PROB + EXP(JA_DLLF_SS)-1) - (((1 - JA_BETA) * JA_GDP * JA_PGNP - JA_TAXH) / JA_P + RES_JA_WK * JA_WK)

80: Real human wealth - young : Steady State Version (SS_JA_WH1)
JA_WH1 * GREAL_SS =
JA_WH1 * (1 + JA_RSR + JA_ALPHA1 + RES_JA_WH1 + JA_PROB + EXP(JA_DLLF_SS)-1) - (((1 - JA_BETA) * JA_GDP * JA_PGNP - JA_TAXH) / JA_P + RES_JA_WK * JA_WK)

81: Real human wealth - adult (JA_WH2)
JA_WH2(1) =
JA_WH2 * (1 + JA_RSR + JA_ALPHA2 + RES_JA_WH2 + JA_PROB + EXP(JA_DLLF_SS)-1) - (((1 - JA_BETA) * JA_GDP * JA_PGNP - JA_TAXH) / JA_P + RES_JA_WK * JA_WK)

81: Real human wealth - adult : Steady State Version (SS_JA_WH2)
JA_WH2 * GREAL_SS =
JA_WH2 * (1 + JA_RSR + JA_ALPHA2 + RES_JA_WH2 + JA_PROB + EXP(JA_DLLF_SS)-1) - (((1 - JA_BETA) * JA_GDP * JA_PGNP - JA_TAXH) / JA_P + RES_JA_WK * JA_WK)

82: Real human wealth - old (JA_WH3)
JA_WH3(1) =
JA_WH3 * (1 + JA_RSR + JA_ALPHA3 + RES_JA_WH3 + JA_PROB + EXP(JA_DLLF_SS)-1) - (((1 - JA_BETA) * JA_GDP * JA_PGNP - JA_TAXH) / JA_P + RES_JA_WK * JA_WK)

82: Real human wealth - old : Steady State Version (SS_JA_WH3)
JA_WH3 * GREAL_SS =
JA_WH3 * (1 + JA_RSR + JA_ALPHA3 + RES_JA_WH3 + JA_PROB + EXP(JA_DLLF_SS)-1) - (((1 - JA_BETA) * JA_GDP * JA_PGNP - JA_TAXH) / JA_P + RES_JA_WK * JA_WK)

83: Consumption - current income (JA_C_DI)
JA_C_DI =
(JA_LAMBDA1 * JA_BCHI1 + JA_LAMBDA2 * JA_BCHI2 + JA_LAMBDA3 * (1 - JA_BCHI1 - JA_BCHI2)) * ((1 - JA_BETA) * JA_GDP * JA_PGNP - JA_TAXH) / JA_P + RES_JA_C_DI * GREAL**TME

83: Consumption - current income : Steady State Version (SS_JA_C_DI)
JA_C_DI =
(JA_LAMBDA1 * JA_BCHI1 + JA_LAMBDA2 * JA_BCHI2 + JA_LAMBDA3 * (1 - JA_BCHI1 - JA_BCHI2)) * ((1 - JA_BETA) * JA_GDP * JA_PGNP - JA_TAXH) / JA_P + RES_JA_C_DI * GREAL**TME

84: Consumption - permanent income (JA_C_PI)
JA_C_PI =
JA_MPC * (JA_WK + (JA_M + JA_B + JA_NFA / JA_ER) / JA_P + JA_BCHI1 * (1 - JA_LAMBDA1) * JA_WH1 + JA_BCHI2 * (1 - JA_LAMBDA2) * JA_WH2 + (1 - JA_BCHI1 - JA_BCHI2) * (1 - JA_LAMBDA3) * JA_WH3)

84: Consumption - permanent income : Steady State Version (SS_JA_C_PI)
JA_C_PI =
JA_MPC * (JA_WK + (JA_M + JA_B + JA_NFA / JA_ER) / JA_P + JA_BCHI1 * (1 - JA_LAMBDA1) * JA_WH1 + JA_BCHI2 * (1 - JA_LAMBDA2) * JA_WH2 + (1 - JA_BCHI1 - JA_BCHI2) * (1 - JA_LAMBDA3) * JA_WH3)

85: Real human wealth (JA_WH)
JA_WH =
JA_BCHI1 * JA_WH1 + JA_BCHI2 * JA_WH2 + (1 - JA_BCHI1 - JA_BCHI2) * JA_WH3

85: Real human wealth : Steady State Version (SS_JA_WH)
JA_WH =
JA_BCHI1 * JA_WH1 + JA_BCHI2 * JA_WH2 + (1 - JA_BCHI1 - JA_BCHI2) * JA_WH3

86: Consumption of oil (JA_COIL)
DEL(1: LOG(JA_COIL)) =
JA_COIL0 + JA_COIL1 * DEL(1: LOG(JA_GDP)) + JA_COIL2 * DEL(1: LOG(POIL / JA_ER / JA_PGNP)) + JA_COIL3 * LOG(POIL(-1) / JA_ER(-1) / JA_PGNP(-1)) + JA_COIL4 * LOG(JA_GDP(-1) / JA_COIL(-1)) + RES_JA_COIL

86: Consumption of oil : Steady State Version (SS_JA_COIL)
LOG(GREAL) =
JA_COIL0 + JA_COIL1 * LOG(GREAL) + JA_COIL2 * 0 + JA_COIL3 * LOG(POIL / JA_ER / JA_PGNP) + JA_COIL4 * LOG(JA_GDP / JA_COIL) + RES_JA_COIL

87: Change in investment relative to the capital stock (JA_K)
JA_INVEST / JA_K(-1) - (JA_DELTA_SS + GREAL_SS - 1) =
JA_K1 * (JA_WK / JA_K(-1)-1) + JA_K2 * (JA_WK(-1) / JA_K(-2)-1) + RES_JA_K

87: Change in investment relative to the capital stock : Steady State Version (SS_JA_K)
GREAL * JA_INVEST / JA_K - (JA_DELTA_SS + GREAL_SS - 1) =
(JA_K1 + JA_K2) * (GREAL * JA_WK / JA_K - 1) + RES_JA_K

88: Marginal product of capital (JA_MPK)
JA_MPK =
JA_BETA * JA_GDP / JA_K

88: Marginal product of capital : Steady State Version (SS_JA_MPK)
JA_MPK =
JA_BETA * JA_GDP / JA_K

89: Tobin's Q (JA_Q)
JA_Q =
JA_CHI * (JA_INVEST / JA_K(-1) - (JA_DELTA_SS + GREAL_SS - 1))+1

89: Tobin's Q : Steady State Version (SS_JA_Q)
JA_Q =
1 + JA_CHI * 0

90: Real market value of the capital stock (JA_WK)
JA_WK(1) =
JA_WK * (1 + JA_RSR + JA_K / JA_K(-1)-1 + JA_DELTA + RES_JA_WK) - (JA_BETA * JA_GDP * JA_PGNP - JA_TAXK) / JA_P + (JA_CHI / 2 * ((JA_Q - 1) / JA_CHI)**2 + JA_INVEST / JA_K(-1) * (JA_Q - 1)) * JA_K(-1) * JA_PGNP / JA_P

90: Real market value of the capital stock : Steady State Version (SS_JA_WK)
JA_WK * GREAL =
JA_WK * (1 + JA_RSR + GREAL - 1 + JA_DELTA + RES_JA_WK) - (JA_BETA * JA_GDP * JA_PGNP - JA_TAXK) / JA_P

91: Real gross business investment (JA_INVEST)
JA_INVEST =
DEL(1: JA_K) + JA_DELTA * JA_K(-1)

91: Real gross business investment : Steady State Version (SS_JA_INVEST)
JA_INVEST =
(1 - (1 - JA_DELTA) / GREAL) * JA_K

92: Export volume - manufactured goods (JA_XM)
DEL(1: LOG(JA_XM)) =
JA_XM0 + DEL(1: LOG(JA_FACT)) + JA_XM1 * DEL(1: JA_RCI) + JA_XM2 * (JA_XM3 * JA_RCI(-1) + LOG(JA_FACT(-1)) - LOG(JA_XM(-1))) + RES_JA_XM

92: Export volume - manufactured goods : Steady State Version (SS_JA_XM)
LOG(GREAL) =
JA_XM0 + LOG(GREAL) + JA_XM1 * 0 + JA_XM2 * (JA_XM3 * JA_RCI + LOG(JA_FACT) - LOG(JA_XM)) + RES_JA_XM

93: Export volume - manufactured goods, adjusted for real world trade discrepancy (JA_XMA)
JA_XMA =
JA_XM + T02 * (WTRADER - TRDER * GREAL**TME) / JA_E96

93: Export volume - manufactured goods, adjusted for real world trade discrepancy : Steady State Version (SS_JA_XMA)
JA_XMA =
JA_XM + T02 * (WTRADER - TRDER * GREAL**TME) / JA_E96

94: Total exports volume (JA_XT)
JA_XT =
JA_XMA + JA_XOIL

94: Total exports volume : Steady State Version (SS_JA_XT)
JA_XT =
JA_XMA + JA_XOIL

95: Definition of real domestic economic activity (JA_ACT)
JA_ACT =
JA_C_MPROP * JA_C + JA_INVEST_MPROP * JA_INVEST + JA_G_MPROP * JA_G + JA_XT_MPROP * JA_XT

95: Definition of real domestic economic activity : Steady State Version (SS_JA_ACT)
JA_ACT =
JA_C_MPROP * JA_C + JA_INVEST_MPROP * JA_INVEST + JA_G_MPROP * JA_G + JA_XT_MPROP * JA_XT

96: Import volume - manufactured goods (JA_IM)
DEL(1: LOG(JA_IM)) =
JA_IM0 + DEL(1: LOG(JA_ACT)) + JA_IM1 * DEL(1: LOG(JA_PIMA / JA_PGNPNO)) + JA_IM2 * (JA_IM3 * LOG(JA_PIMA(-1) / JA_PGNPNO(-1)) + LOG(JA_ACT(-1)) - LOG(JA_IM(-1))) + RES_JA_IM

96: Import volume - manufactured goods : Steady State Version (SS_JA_IM)
LOG(GREAL) =
JA_IM0 + LOG(GREAL) + JA_IM1 * 0 + JA_IM2 * (JA_IM3 * LOG(JA_PIMA / JA_PGNPNO) + LOG(JA_ACT) - LOG(JA_IM)) + RES_JA_IM

97: Import volume - oil (JA_IOIL)
JA_IOIL =
JA_COIL + JA_XOIL - JA_PRODOIL + RES_JA_IOIL * GREAL**TME

97: Import volume - oil : Steady State Version (SS_JA_IOIL)
JA_IOIL =
JA_COIL + JA_XOIL - JA_PRODOIL + RES_JA_IOIL * GREAL**TME

98: Import volume - commodities (JA_ICOM)
DEL(1: LOG(JA_ICOM)) =
JA_IC0 + JA_IC2 * DEL(1: LOG(PCOM / JA_ER / JA_PGNP)) + JA_IC1 * DEL(1: LOG(JA_GDP)) + JA_IC3 * LOG(PCOM(-1) / JA_ER(-1) / JA_PGNP(-1)) + JA_IC4 * LOG(JA_GDP(-1)) + JA_IC5 * LOG(JA_ICOM(-1)) + RES_JA_ICOM - (JA_IC4 + JA_IC5) * LOG(GREAL**TME)

98: Import volume - commodities : Steady State Version (SS_JA_ICOM)
LOG(GREAL) =
JA_IC0 + JA_IC2 * 0 + JA_IC1 * LOG(GREAL) + JA_IC3 * LOG(PCOM / JA_ER / JA_PGNP) + JA_IC4 * LOG(JA_GDP / GREAL) + JA_IC5 * LOG(JA_ICOM / GREAL) + RES_JA_ICOM - (JA_IC4 + JA_IC5) * LOG(GREAL**TME)

99: Total imports volume (JA_IT)
JA_IT =
JA_IM + JA_IOIL + JA_ICOM

99: Total imports volume : Steady State Version (SS_JA_IT)
JA_IT =
JA_IM + JA_IOIL + JA_ICOM

100: Definition of real domestic absorption (JA_A)
JA_A =
JA_C + JA_INVEST + JA_G

100: Definition of real domestic absorption : Steady State Version (SS_JA_A)
JA_A =
JA_C + JA_INVEST + JA_G

101: Real GDP identity (JA_GDP)
JA_GDP =
JA_A + JA_XT - JA_IT

101: Real GDP identity : Steady State Version (SS_JA_GDP)
JA_GDP =
JA_A + JA_XT - JA_IT

102: Definition of real GNP (JA_GNP)
JA_GNP =
JA_GDP + (US_R + SUM(I =
-3 TO -1: JA_PREM(I)) / 3) * JA_NFA(-1) / JA_ER / JA_PGNP + RES_JA_GNP * GREAL**TME

102: Definition of real GNP : Steady State Version (SS_JA_GNP)
JA_GNP =
JA_GDP + (US_R + JA_PREM) * JA_NFA / (US_INFL * GREAL) / JA_ER / JA_PGNP + RES_JA_GNP * GREAL**TME

103: Real wealth (financial plus discounted future income) (JA_W)
JA_W =
JA_WH + JA_WK + (JA_M + JA_B + JA_NFA / JA_ER) / JA_P

103: Real wealth (financial plus discounted future income) : Steady State Version (SS_JA_W)
JA_W =
JA_WH + JA_WK + (JA_M + JA_B + JA_NFA / JA_ER) / JA_P

104: Real disposable income (JA_YD)
JA_YD =
(JA_GDP * JA_PGNP - JA_TAX) / JA_P - JA_DELTA * JA_K(-1)

104: Real disposable income : Steady State Version (SS_JA_YD)
JA_YD =
(JA_GDP * JA_PGNP - JA_TAX) / JA_P - JA_DELTA * JA_K / GREAL

105: Total government expenditures - nominal (JA_GE)
JA_GE =
JA_P * JA_G + JA_R * JA_B(-1) + JA_GEXOG

105: Total government expenditures - nominal : Steady State Version (SS_JA_GE)
JA_GE =
JA_P * JA_G + JA_R * JA_B / (GREAL * JA_INFL) + JA_GEXOG

106: Government tax receipts (JA_TAX)
JA_TAX =
JA_TRATE * JA_PGNP * JA_GNP

106: Government tax receipts : Steady State Version (SS_JA_TAX)
JA_TAX =
JA_TRATE * JA_PGNP * JA_GNP

107: Taxes on capital (JA_TAXK)
JA_TAXK =
JA_TAXK_ALPHA * JA_TAXK_SHAR * JA_TAX + (1 - JA_TAXK_ALPHA) * JA_TRATEK * JA_BETA * JA_GDP * JA_PGNP

107: Taxes on capital : Steady State Version (SS_JA_TAXK)
JA_TAXK =
JA_TAXK_ALPHA * JA_TAXK_SHAR * JA_TAX + (1 - JA_TAXK_ALPHA) * JA_TRATEK * JA_BETA * JA_GDP * JA_PGNP

108: Taxes on labor (JA_TAXH)
JA_TAXH =
JA_TAX - JA_TAXK

108: Taxes on labor : Steady State Version (SS_JA_TAXH)
JA_TAXH =
JA_TAX - JA_TAXK

109: Average tax rate (JA_TRATE)
JA_TRATE =
JA_TRATE_EXOG * (1 - JA_TRATE_ALPHA) + JA_TRATE_ALPHA * (SUM(I =
-2 TO 2: JA_TRATE(I) / 5) + TAU1 * (JA_B(1) / (JA_GNP(1) * JA_PGNP(1)) - JA_BT_GDP_RAT(1)) + RES_JA_TRATE)

109: Average tax rate : Steady State Version (SS_JA_TRATE)
0 =
TAU1 * (JA_B / (JA_GNP * JA_PGNP) - JA_BT_GDP_RAT) + RES_JA_TRATE

110: No equation Description (JA_BT)
JA_BT =
JA_BT_GDP_RAT * JA_GNP * JA_PGNP

110: No equation Description : Steady State Version (SS_JA_BT)
JA_BT =
JA_BT_GDP_RAT * JA_GNP * JA_PGNP

111: Government balance sheet (solves for nominal government debt) (JA_B)
DEL(1: JA_B) + DEL(1: JA_M) =
JA_R * JA_B(-1) + JA_P * JA_G - JA_TAX

111: Government balance sheet (solves for nominal government debt) : Steady State Version (SS_JA_B)
(JA_B + JA_M) * (1-1 / (JA_INFL * GREAL)) =
JA_R * JA_B / (JA_INFL * GREAL) + JA_P * JA_G - JA_TAX

112: Definition of nominal government deficit (JA_GDEF)
JA_GDEF =
DEL(1: JA_B + JA_M)

112: Definition of nominal government deficit : Steady State Version (SS_JA_GDEF)
JA_GDEF =
(JA_B + JA_M) * (1-1 / (JA_INFL * GREAL))

113: Money demand function (JA_M)
LOG(JA_M / JA_P) =
JA_M0 + (1 - JA_M4) * LOG(JA_A) + JA_M2 * JA_RS + JA_M4 * LOG(JA_M(-1) / JA_P(-1)) + RES_JA_M

113: Money demand function : Steady State Version (SS_JA_M)
LOG(JA_M / JA_P) =
JA_M0 + (1 - JA_M4) * LOG(JA_A) + JA_M2 * JA_RS + JA_M4 * LOG(JA_M / JA_P / GREAL) + RES_JA_M

114: Money supply reaction function - short-term interest rate (JA_RS)
JA_RS =
(1 - JA_X_RS1) * JA_RS_EXOG + JA_X_RS1 * (JA_RS(-1) + JA_RS1 * LOG(JA_MT / JA_M) / JA_M2 + JA_RS2 * LOG(GR_ER / JA_ER / JA_PAR) + JA_RSCON2 + RES_JA_RS) + JA_RS1PERM * 0

114: Money supply reaction function - short-term interest rate : Steady State Version (SS_JA_RS)
0 =
JA_RS1PERM * LOG(JA_MT / JA_M) / JA_M2 + JA_RS2 * LOG(GR_ER / JA_ER / JA_PAR) + RES_JA_RS + 0 * JA_RS1 * JA_RS_EXOG * JA_RSCON * JA_RSCON2

115: Term structure of interest rates (solves for long-term rate) (JA_RL)
JA_RL / 100 =
((1 + JA_RS / 100) * (1 + JA_RS(1) / 100) * (1 + JA_RS(2) / 100) * (1 + JA_RS(3) / 100) * (1 + JA_RS(4) / 100) * (1 + JA_RS(5) / 100) * (1 + JA_RS(6) / 100) * (1 + JA_RS(7) / 100) * (1 + JA_RS(8) / 100) * (1 + JA_RS(9) / 100))**0.1 * (1 + JA_TPREM)-1 + RES_JA_RL

115: Term structure of interest rates (solves for long-term rate) : Steady State Version (SS_JA_RL)
JA_RL / 100 =
(1 + JA_RS / 100) * (1 + JA_TPREM)-1 + RES_JA_RL

116: Interest rate on NFA faced by industrialized countries (JA_R)
JA_R =
0.5 * JA_RS(-1) / 100+0.5 * SUM(I =
-3 TO -1: JA_RL(I) / 100) / 3

116: Interest rate on NFA faced by industrialized countries : Steady State Version (SS_JA_R)
JA_R =
0.5 * JA_RS / 100+0.5 * JA_RL / 100

117: Real long-term interest rate (ex ante) (JA_RLR)
JA_RLR =
(1 + JA_RL / 100) / (JA_P(10) / JA_P)**0.1-1

117: Real long-term interest rate (ex ante) : Steady State Version (SS_JA_RLR)
JA_RLR =
(1 + JA_RL / 100) / JA_INFL - 1

118: Real short-term interest rate (ex ante) (JA_RSR)
JA_RSR =
(1 + JA_RS / 100) / (JA_P(1) / JA_P)-1

118: Real short-term interest rate (ex ante) : Steady State Version (SS_JA_RSR)
JA_RSR =
(1 + JA_RS / 100) / JA_INFL - 1

119: Non-oil GNP deflator (JA_PGNPNO)
JA_PGNPNO =
(JA_GDP * JA_PGNP - JA_PRODOIL * POIL / JA_ER * JA_E96) / (JA_GDP - JA_PRODOIL)

119: Non-oil GNP deflator : Steady State Version (SS_JA_PGNPNO)
JA_PGNPNO =
(JA_GDP * JA_PGNP - JA_PRODOIL * POIL / JA_ER * JA_E96) / (JA_GDP - JA_PRODOIL)

120: PGNP identity (with discrepancy) (JA_P)
JA_PGNP =
(JA_P * JA_A + JA_XT * JA_PXT - JA_IT * JA_PIT) / JA_GDP + RES_JA_P * JA_PGNP

120: PGNP identity (with discrepancy) : Steady State Version (SS_JA_P)
JA_PGNP =
(JA_P * JA_A + JA_XT * JA_PXT - JA_IT * JA_PIT) / JA_GDP + RES_JA_P * JA_PGNP

121: Manufactured goods export price (JA_PXM)
DEL(1: LOG(JA_PXM)) =
JA_PXM0 + JA_PXM1 * DEL(1: LOG(JA_PGNPNO)) + (1 - JA_PXM1) * DEL(1: LOG(JA_PFM)) + JA_PXM2 * LOG(JA_PGNPNO(-1) / JA_PXM(-1)) + RES_JA_PXM

121: Manufactured goods export price : Steady State Version (SS_JA_PXM)
JA_INFL =
JA_PXM0 + JA_PXM1 * JA_INFL + (1 - JA_PXM1) * JA_INFL + JA_PXM2 * LOG(JA_PGNPNO / JA_PXM) + RES_JA_PXM

122: Total export price (JA_PXT)
JA_PXT =
(JA_XMA * JA_PXM + POIL / JA_ER * JA_E96 * JA_XOIL) / JA_XT

122: Total export price : Steady State Version (SS_JA_PXT)
JA_PXT =
(JA_XMA * JA_PXM + POIL / JA_ER * JA_E96 * JA_XOIL) / JA_XT

123: Manufactured goods import price (JA_PIM)
JA_PIM =
(S0102 * US_PXM + S0202 * JA_PXM * JA_ER / JA_E96 + S0302 * GR_PXM * GR_ER / GR_E96 + S0402 * FR_PXM * FR_ER / FR_E96 + S0502 * IT_PXM * IT_ER / IT_E96 + S0602 * UK_PXM * UK_ER / UK_E96 + S0702 * CA_PXM * CA_ER / CA_E96 + S0802 * SI_PXM * SI_ER / SI_E96 + S0902 * RW_PXM * RW_ER / RW_E96) / (JA_ER / JA_E96) * (1 + RES_JA_PIM)

123: Manufactured goods import price : Steady State Version (SS_JA_PIM)
JA_PIM =
(S0102 * US_PXM + S0202 * JA_PXM * JA_ER / JA_E96 + S0302 * GR_PXM * GR_ER / GR_E96 + S0402 * FR_PXM * FR_ER / FR_E96 + S0502 * IT_PXM * IT_ER / IT_E96 + S0602 * UK_PXM * UK_ER / UK_E96 + S0702 * CA_PXM * CA_ER / CA_E96 + S0802 * SI_PXM * SI_ER / SI_E96 + S0902 * RW_PXM * RW_ER / RW_E96) / (JA_ER / JA_E96) * (1 + RES_JA_PIM)

124: Import price for manufactured goods - adjusted for world trade discrepancy (JA_PIMA)
JA_PIMA =
JA_PIM + T02 * (WTRADE - TRDE * GREAL**TME * US_INFL**TME) / JA_ER / JA_IM

124: Import price for manufactured goods - adjusted for world trade discrepancy : Steady State Version (SS_JA_PIMA)
JA_PIMA =
JA_PIM + T02 * (WTRADE - TRDE * GREAL**TME * US_INFL**TME) / JA_ER / JA_IM

125: Total import price (JA_PIT)
JA_PIT =
(JA_IM * JA_PIMA + JA_IOIL * POIL / JA_ER * JA_E96 + JA_ICOM * PCOM / JA_ER * JA_E96) / JA_IT

125: Total import price : Steady State Version (SS_JA_PIT)
JA_PIT =
(JA_IM * JA_PIMA + JA_IOIL * POIL / JA_ER * JA_E96 + JA_ICOM * PCOM / JA_ER * JA_E96) / JA_IT

126: No equation Description (JA_TFP_FE)
LOG(JA_TFP_FE) =
RES_JA_TFP_FE

126: No equation Description : Steady State Version (SS_JA_TFP_FE)
LOG(JA_TFP_FE) =
RES_JA_TFP_FE

127: Full-employment output production function (JA_GDP_FE)
JA_GDP_FE =
JA_TFP_FE * JA_K**JA_BETA * ((1 - JA_UNR_FE / 100) * JA_LF)**(1 - JA_BETA)

127: Full-employment output production function : Steady State Version (SS_JA_GDP_FE)
JA_GDP_FE =
JA_TFP_FE * JA_K**JA_BETA * ((1 - JA_UNR_FE / 100) * JA_LF)**(1 - JA_BETA)

128: Labor force (JA_LF)
JA_LF =
JA_POP * JA_PART / (1 + JA_DEM3)

128: Labor force : Steady State Version (SS_JA_LF)
JA_LF =
JA_POP * JA_PART / (1 + JA_DEM3)

129: Capacity utilization (JA_CU)
JA_CU =
100 * JA_GDP / JA_GDP_FE

129: Capacity utilization : Steady State Version (SS_JA_CU)
JA_CU =
100 * JA_GDP / JA_GDP_FE

130: Balance of payments (claims on foreigners), current U.S. dollars (JA_NFA)
DEL(1: JA_NFA) =
(JA_XT * JA_PXT - JA_IT * JA_PIT) * JA_ER + (US_R + SUM(I =
-3 TO -1: JA_PREM(I)) / 3) * JA_NFA(-1) + RES_JA_NFA * US_INFL**TME * GREAL**TME

130: Balance of payments (claims on foreigners), current U.S. dollars : Steady State Version (SS_JA_NFA)
JA_NFA * (1-1 / (US_INFL * GREAL)) =
(JA_XT * JA_PXT - JA_IT * JA_PIT) * JA_ER + (US_R + JA_PREM) * JA_NFA / (US_INFL * GREAL) + RES_JA_NFA * US_INFL**TME * GREAL**TME

131: Trade balance - local currency (JA_TB)
JA_TB =
JA_XT * JA_PXT - JA_IT * JA_PIT

131: Trade balance - local currency : Steady State Version (SS_JA_TB)
JA_TB =
JA_XT * JA_PXT - JA_IT * JA_PIT

132: Current account - current U.S. dollars (JA_CURBAL)
JA_CURBAL =
DEL(1: JA_NFA)

132: Current account - current U.S. dollars : Steady State Version (SS_JA_CURBAL)
JA_CURBAL =
JA_NFA * (1-1 / (US_INFL * GREAL))

133: Open interest parity condition (solves for exchange rate) (JA_ER)
1 + US_RS / 100 =
(1 + JA_RS / 100) * JA_ER(1) / JA_ER - JA_PREM + RES_JA_ER

133: Open interest parity condition (solves for exchange rate) : Steady State Version (SS_JA_ER)
1 + US_RS / 100 =
(1 + JA_RS / 100) * US_INFL / JA_INFL - JA_PREM + RES_JA_ER

134: Real effective exchange rate (relative export price) (JA_RCI)
JA_RCI =
LOG(JA_PXM) - LOG(JA_PFM)

134: Real effective exchange rate (relative export price) : Steady State Version (SS_JA_RCI)
JA_RCI =
LOG(JA_PXM) - LOG(JA_PFM)

135: Weighted average of foreign activity (JA_FACT)
JA_FACT =
(US_IM * US_E96 * S0201 + JA_IM * JA_E96 * S0202 + GR_IM * GR_E96 * S0203 + FR_IM * FR_E96 * S0204 + IT_IM * IT_E96 * S0205 + UK_IM * UK_E96 * S0206 + CA_IM * CA_E96 * S0207 + SI_IM * SI_E96 * S0208 + (HO_IM + DC_IM) * RW_E96 * S0209) / JA_E96

135: Weighted average of foreign activity : Steady State Version (SS_JA_FACT)
JA_FACT =
(US_IM * US_E96 * S0201 + JA_IM * JA_E96 * S0202 + GR_IM * GR_E96 * S0203 + FR_IM * FR_E96 * S0204 + IT_IM * IT_E96 * S0205 + UK_IM * UK_E96 * S0206 + CA_IM * CA_E96 * S0207 + SI_IM * SI_E96 * S0208 + (HO_IM + DC_IM) * RW_E96 * S0209) / JA_E96

136: Prices in foreign markets (JA_PFM)
LOG(JA_PFM) =
W0201 * LOG(US_PXM * US_ER / US_E96) + W0202 * LOG(JA_ER / JA_E96) + W0203 * LOG(GR_PXM * GR_ER / GR_E96) + W0204 * LOG(FR_PXM * FR_ER / FR_E96) + W0205 * LOG(IT_PXM * IT_ER / IT_E96) + W0206 * LOG(UK_PXM * UK_ER / UK_E96) + W0207 * LOG(CA_PXM * CA_ER / CA_E96) + W0208 * LOG(SI_PXM * SI_ER / SI_E96) + W0209 * LOG(RW_PXM * RW_ER / RW_E96)

136: Prices in foreign markets : Steady State Version (SS_JA_PFM)
LOG(JA_PFM) =
W0201 * LOG(US_PXM * US_ER / US_E96) + W0202 * LOG(JA_ER / JA_E96) + W0203 * LOG(GR_PXM * GR_ER / GR_E96) + W0204 * LOG(FR_PXM * FR_ER / FR_E96) + W0205 * LOG(IT_PXM * IT_ER / IT_E96) + W0206 * LOG(UK_PXM * UK_ER / UK_E96) + W0207 * LOG(CA_PXM * CA_ER / CA_E96) + W0208 * LOG(SI_PXM * SI_ER / SI_E96) + W0209 * LOG(RW_PXM * RW_ER / RW_E96)

137: Nominal effective exchange rate (JA_NEER)
JA_NEER =
EXP( - V0201 * LOG(US_ER / US_E96) + LOG(JA_ER / JA_E96) - V0203 * LOG(GR_ER / GR_E96) - V0204 * LOG(FR_ER / FR_E96) - V0205 * LOG(IT_ER / IT_E96) - V0206 * LOG(UK_ER / UK_E96) - V0207 * LOG(CA_ER / CA_E96) - V0208 * LOG(SI_ER / SI_E96))

137: Nominal effective exchange rate : Steady State Version (SS_JA_NEER)
JA_NEER =
EXP( - V0201 * LOG(US_ER / US_E96) + LOG(JA_ER / JA_E96) - V0203 * LOG(GR_ER / GR_E96) - V0204 * LOG(FR_ER / FR_E96) - V0205 * LOG(IT_ER / IT_E96) - V0206 * LOG(UK_ER / UK_E96) - V0207 * LOG(CA_ER / CA_E96) - V0208 * LOG(SI_ER / SI_E96))