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The United Kingdom Model

342: Consumer price index (UK_CPI)
DEL(1: LOG(UK_CPI)) =
UK_CPI1 * DEL(1: LOG(UK_PIM)) + UK_CPI2 * DEL(1: LOG(UK_PGNP)) + (1 - UK_CPI1 - UK_CPI2) * LOG(UK_CPI(-1) / UK_CPI(-2)) + RES_UK_CPI

342: Consumer price index : Steady State Version (SS_UK_CPI)
DEL(1: LOG(UK_CPI)) =
DEL(1: LOG(UK_PGNP))+0 * (UK_CPI1 + UK_CPI2) + RES_UK_CPI

343: Unemployment rate (UK_UNR_A)
UK_UNR_A =
UK_UNR_FE + UK_UNR_1 * 100 * LOG(UK_GDP / UK_GDP_FE) + UK_UNR_2 * (UK_UNR(-1) - UK_UNR_FE(-1)) + RES_UK_UNR_A

343: Unemployment rate : Steady State Version (SS_UK_UNR_A)
UK_UNR_A =
UK_UNR_FE - 100 * LOG(UK_GDP / UK_GDP_FE) + RES_UK_UNR_A + UK_UNR_1 * UK_UNR_2 * 0

344: Unemployment rate (restricting the value to be above zero) (UK_UNR)
UK_UNR =
MAX(UK_UNR_A,0.1)

344: Unemployment rate (restricting the value to be above zero) : Steady State Version (SS_UK_UNR)
UK_UNR =
UK_UNR_A

345: Price level (GNP deflator) (UK_PGNP)
DEL(1: LOG(UK_PGNPNO)) =
UK_LAMBDA * (UK_DELTA_PI * DEL(1: LOG(UK_PGNPNO(1))) + (1 - UK_DELTA_PI) * DEL(1: LOG(UK_PGNPNO(-1)))) + (1 - UK_LAMBDA) * DEL(1: LOG(UK_PGNPNO(-1))) + UK_GAMMA / 100 * (UK_NLIN - UK_UNR) / (UK_UNR - UK_PHI) + RES_UK_PGNP

345: Price level (GNP deflator) : Steady State Version (SS_UK_PGNP)
0 * LOG(UK_PGNPNO) =
UK_GAMMA / 100 * (UK_NLIN - UK_UNR) / (UK_UNR - UK_PHI)+0 * UK_LAMBDA * UK_DELTA_PI + RES_UK_PGNP

346: Inflation (UK_INFL)
UK_INFL =
UK_MGROW / GREAL

346: Inflation : Steady State Version (SS_UK_INFL)
UK_INFL =
UK_MGROW / GREAL

347: Labor force growth (UK_DLLF)
UK_DLLF =
LOG(UK_LF / UK_LF(-1))

347: Labor force growth : Steady State Version (SS_UK_DLLF)
UK_DLLF =
LOG(UK_LF / UK_LF(-1))

348: Real GDP growth (UK_DLGDP)
UK_DLGDP =
LOG(UK_GDP / UK_GDP(-1))

348: Real GDP growth : Steady State Version (SS_UK_DLGDP)
UK_DLGDP =
LOG(UK_GDP / UK_GDP(-1))

349: Personal household expenditure (UK_C)
UK_C =
UK_C_DI + UK_C_PI

349: Personal household expenditure : Steady State Version (SS_UK_C)
UK_C =
UK_C_DI + UK_C_PI

350: Marginal propensity to consume (UK_MPC)
UK_MPC =
1 / UK_MPCINV

350: Marginal propensity to consume : Steady State Version (SS_UK_MPC)
UK_MPC =
UK_RSR * (1-1 / UK_SIGMA) + RES_UK_MPC / UK_SIGMA + UK_PROB

351: Marginal propensity to consume - inverse (UK_MPCINV)
UK_MPCINV(1) =
UK_MPCINV - 1 - ((1 - UK_SIGMA) * (UK_RSR + UK_PROB) - (RES_UK_MPC + UK_PROB)) * UK_MPCINV / UK_SIGMA

351: Marginal propensity to consume - inverse : Steady State Version (SS_UK_MPCINV)
UK_MPCINV =
1 / UK_MPC

352: Real human wealth - young (UK_WH1)
UK_WH1(1) =
UK_WH1 * (1 + UK_RSR + UK_ALPHA1 + RES_UK_WH1 + UK_PROB + EXP(UK_DLLF_SS)-1) - (((1 - UK_BETA) * UK_GDP * UK_PGNP - UK_TAXH) / UK_P + RES_UK_WK * UK_WK)

352: Real human wealth - young : Steady State Version (SS_UK_WH1)
UK_WH1 * GREAL_SS =
UK_WH1 * (1 + UK_RSR + UK_ALPHA1 + RES_UK_WH1 + UK_PROB + EXP(UK_DLLF_SS)-1) - (((1 - UK_BETA) * UK_GDP * UK_PGNP - UK_TAXH) / UK_P + RES_UK_WK * UK_WK)

353: Real human wealth - adult (UK_WH2)
UK_WH2(1) =
UK_WH2 * (1 + UK_RSR + UK_ALPHA2 + RES_UK_WH2 + UK_PROB + EXP(UK_DLLF_SS)-1) - (((1 - UK_BETA) * UK_GDP * UK_PGNP - UK_TAXH) / UK_P + RES_UK_WK * UK_WK)

353: Real human wealth - adult : Steady State Version (SS_UK_WH2)
UK_WH2 * GREAL_SS =
UK_WH2 * (1 + UK_RSR + UK_ALPHA2 + RES_UK_WH2 + UK_PROB + EXP(UK_DLLF_SS)-1) - (((1 - UK_BETA) * UK_GDP * UK_PGNP - UK_TAXH) / UK_P + RES_UK_WK * UK_WK)

354: Real human wealth - old (UK_WH3)
UK_WH3(1) =
UK_WH3 * (1 + UK_RSR + UK_ALPHA3 + RES_UK_WH3 + UK_PROB + EXP(UK_DLLF_SS)-1) - (((1 - UK_BETA) * UK_GDP * UK_PGNP - UK_TAXH) / UK_P + RES_UK_WK * UK_WK)

354: Real human wealth - old : Steady State Version (SS_UK_WH3)
UK_WH3 * GREAL_SS =
UK_WH3 * (1 + UK_RSR + UK_ALPHA3 + RES_UK_WH3 + UK_PROB + EXP(UK_DLLF_SS)-1) - (((1 - UK_BETA) * UK_GDP * UK_PGNP - UK_TAXH) / UK_P + RES_UK_WK * UK_WK)

355: Consumption - current income (UK_C_DI)
UK_C_DI =
(UK_LAMBDA1 * UK_BCHI1 + UK_LAMBDA2 * UK_BCHI2 + UK_LAMBDA3 * (1 - UK_BCHI1 - UK_BCHI2)) * ((1 - UK_BETA) * UK_GDP * UK_PGNP - UK_TAXH) / UK_P + RES_UK_C_DI * GREAL**TME

355: Consumption - current income : Steady State Version (SS_UK_C_DI)
UK_C_DI =
(UK_LAMBDA1 * UK_BCHI1 + UK_LAMBDA2 * UK_BCHI2 + UK_LAMBDA3 * (1 - UK_BCHI1 - UK_BCHI2)) * ((1 - UK_BETA) * UK_GDP * UK_PGNP - UK_TAXH) / UK_P + RES_UK_C_DI * GREAL**TME

356: Consumption - permanent income (UK_C_PI)
UK_C_PI =
UK_MPC * (UK_WK + (UK_M + UK_B + UK_NFA / UK_ER) / UK_P + UK_BCHI1 * (1 - UK_LAMBDA1) * UK_WH1 + UK_BCHI2 * (1 - UK_LAMBDA2) * UK_WH2 + (1 - UK_BCHI1 - UK_BCHI2) * (1 - UK_LAMBDA3) * UK_WH3)

356: Consumption - permanent income : Steady State Version (SS_UK_C_PI)
UK_C_PI =
UK_MPC * (UK_WK + (UK_M + UK_B + UK_NFA / UK_ER) / UK_P + UK_BCHI1 * (1 - UK_LAMBDA1) * UK_WH1 + UK_BCHI2 * (1 - UK_LAMBDA2) * UK_WH2 + (1 - UK_BCHI1 - UK_BCHI2) * (1 - UK_LAMBDA3) * UK_WH3)

357: Real human wealth (UK_WH)
UK_WH =
UK_BCHI1 * UK_WH1 + UK_BCHI2 * UK_WH2 + (1 - UK_BCHI1 - UK_BCHI2) * UK_WH3

357: Real human wealth : Steady State Version (SS_UK_WH)
UK_WH =
UK_BCHI1 * UK_WH1 + UK_BCHI2 * UK_WH2 + (1 - UK_BCHI1 - UK_BCHI2) * UK_WH3

358: Consumption of oil (UK_COIL)
DEL(1: LOG(UK_COIL)) =
UK_COIL0 + UK_COIL1 * DEL(1: LOG(UK_GDP)) + UK_COIL2 * DEL(1: LOG(POIL / UK_ER / UK_PGNP)) + UK_COIL3 * LOG(POIL(-1) / UK_ER(-1) / UK_PGNP(-1)) + UK_COIL4 * LOG(UK_GDP(-1) / UK_COIL(-1)) + RES_UK_COIL

358: Consumption of oil : Steady State Version (SS_UK_COIL)
LOG(GREAL) =
UK_COIL0 + UK_COIL1 * LOG(GREAL) + UK_COIL2 * 0 + UK_COIL3 * LOG(POIL / UK_ER / UK_PGNP) + UK_COIL4 * LOG(UK_GDP / UK_COIL) + RES_UK_COIL

359: Change in investment relative to the capital stock (UK_K)
UK_INVEST / UK_K(-1) - (UK_DELTA_SS + GREAL_SS - 1) =
UK_K1 * (UK_WK / UK_K(-1)-1) + UK_K2 * (UK_WK(-1) / UK_K(-2)-1) + RES_UK_K

359: Change in investment relative to the capital stock : Steady State Version (SS_UK_K)
GREAL * UK_INVEST / UK_K - (UK_DELTA_SS + GREAL_SS - 1) =
(UK_K1 + UK_K2) * (GREAL * UK_WK / UK_K - 1) + RES_UK_K

360: Marginal product of capital (UK_MPK)
UK_MPK =
UK_BETA * UK_GDP / UK_K

360: Marginal product of capital : Steady State Version (SS_UK_MPK)
UK_MPK =
UK_BETA * UK_GDP / UK_K

361: Tobin's Q (UK_Q)
UK_Q =
UK_CHI * (UK_INVEST / UK_K(-1) - (UK_DELTA_SS + GREAL_SS - 1))+1

361: Tobin's Q : Steady State Version (SS_UK_Q)
UK_Q =
1 + UK_CHI * 0

362: Real market value of the capital stock (UK_WK)
UK_WK(1) =
UK_WK * (1 + UK_RSR + UK_K / UK_K(-1)-1 + UK_DELTA + RES_UK_WK) - (UK_BETA * UK_GDP * UK_PGNP - UK_TAXK) / UK_P + (UK_CHI / 2 * ((UK_Q - 1) / UK_CHI)**2 + UK_INVEST / UK_K(-1) * (UK_Q - 1)) * UK_K(-1) * UK_PGNP / UK_P

362: Real market value of the capital stock : Steady State Version (SS_UK_WK)
UK_WK * GREAL =
UK_WK * (1 + UK_RSR + GREAL - 1 + UK_DELTA + RES_UK_WK) - (UK_BETA * UK_GDP * UK_PGNP - UK_TAXK) / UK_P

363: Real gross business investment (UK_INVEST)
UK_INVEST =
DEL(1: UK_K) + UK_DELTA * UK_K(-1)

363: Real gross business investment : Steady State Version (SS_UK_INVEST)
UK_INVEST =
(1 - (1 - UK_DELTA) / GREAL) * UK_K

364: Export volume - manufactured goods (UK_XM)
DEL(1: LOG(UK_XM)) =
UK_XM0 + DEL(1: LOG(UK_FACT)) + UK_XM1 * DEL(1: UK_RCI) + UK_XM2 * (UK_XM3 * UK_RCI(-1) + LOG(UK_FACT(-1)) - LOG(UK_XM(-1))) + RES_UK_XM

364: Export volume - manufactured goods : Steady State Version (SS_UK_XM)
LOG(GREAL) =
UK_XM0 + LOG(GREAL) + UK_XM1 * 0 + UK_XM2 * (UK_XM3 * UK_RCI + LOG(UK_FACT) - LOG(UK_XM)) + RES_UK_XM

365: Export volume - manufactured goods, adjusted for real world trade discrepancy (UK_XMA)
UK_XMA =
UK_XM + T06 * (WTRADER - TRDER * GREAL**TME) / UK_E96

365: Export volume - manufactured goods, adjusted for real world trade discrepancy : Steady State Version (SS_UK_XMA)
UK_XMA =
UK_XM + T06 * (WTRADER - TRDER * GREAL**TME) / UK_E96

366: Total exports volume (UK_XT)
UK_XT =
UK_XMA + UK_XOIL

366: Total exports volume : Steady State Version (SS_UK_XT)
UK_XT =
UK_XMA + UK_XOIL

367: Definition of real domestic economic activity (UK_ACT)
UK_ACT =
UK_C_MPROP * UK_C + UK_INVEST_MPROP * UK_INVEST + UK_G_MPROP * UK_G + UK_XT_MPROP * UK_XT

367: Definition of real domestic economic activity : Steady State Version (SS_UK_ACT)
UK_ACT =
UK_C_MPROP * UK_C + UK_INVEST_MPROP * UK_INVEST + UK_G_MPROP * UK_G + UK_XT_MPROP * UK_XT

368: Import volume - manufactured goods (UK_IM)
DEL(1: LOG(UK_IM)) =
UK_IM0 + DEL(1: LOG(UK_ACT)) + UK_IM1 * DEL(1: LOG(UK_PIMA / UK_PGNPNO)) + UK_IM2 * (UK_IM3 * LOG(UK_PIMA(-1) / UK_PGNPNO(-1)) + LOG(UK_ACT(-1)) - LOG(UK_IM(-1))) + RES_UK_IM

368: Import volume - manufactured goods : Steady State Version (SS_UK_IM)
LOG(GREAL) =
UK_IM0 + LOG(GREAL) + UK_IM1 * 0 + UK_IM2 * (UK_IM3 * LOG(UK_PIMA / UK_PGNPNO) + LOG(UK_ACT) - LOG(UK_IM)) + RES_UK_IM

369: Import volume - oil (UK_IOIL)
UK_IOIL =
UK_COIL + UK_XOIL - UK_PRODOIL + RES_UK_IOIL * GREAL**TME

369: Import volume - oil : Steady State Version (SS_UK_IOIL)
UK_IOIL =
UK_COIL + UK_XOIL - UK_PRODOIL + RES_UK_IOIL * GREAL**TME

370: Import volume - commodities (UK_ICOM)
DEL(1: LOG(UK_ICOM)) =
UK_IC0 + UK_IC2 * DEL(1: LOG(PCOM / UK_ER / UK_PGNP)) + UK_IC1 * DEL(1: LOG(UK_GDP)) + UK_IC3 * LOG(PCOM(-1) / UK_ER(-1) / UK_PGNP(-1)) + UK_IC4 * LOG(UK_GDP(-1)) + UK_IC5 * LOG(UK_ICOM(-1)) + RES_UK_ICOM - (UK_IC4 + UK_IC5) * LOG(GREAL**TME)

370: Import volume - commodities : Steady State Version (SS_UK_ICOM)
LOG(GREAL) =
UK_IC0 + UK_IC2 * 0 + UK_IC1 * LOG(GREAL) + UK_IC3 * LOG(PCOM / UK_ER / UK_PGNP) + UK_IC4 * LOG(UK_GDP / GREAL) + UK_IC5 * LOG(UK_ICOM / GREAL) + RES_UK_ICOM - (UK_IC4 + UK_IC5) * LOG(GREAL**TME)

371: Total imports volume (UK_IT)
UK_IT =
UK_IM + UK_IOIL + UK_ICOM

371: Total imports volume : Steady State Version (SS_UK_IT)
UK_IT =
UK_IM + UK_IOIL + UK_ICOM

372: Definition of real domestic absorption (UK_A)
UK_A =
UK_C + UK_INVEST + UK_G

372: Definition of real domestic absorption : Steady State Version (SS_UK_A)
UK_A =
UK_C + UK_INVEST + UK_G

373: Real GDP identity (UK_GDP)
UK_GDP =
UK_A + UK_XT - UK_IT

373: Real GDP identity : Steady State Version (SS_UK_GDP)
UK_GDP =
UK_A + UK_XT - UK_IT

374: Definition of real GNP (UK_GNP)
UK_GNP =
UK_GDP + (US_R + SUM(I =
-3 TO -1: UK_PREM(I)) / 3) * UK_NFA(-1) / UK_ER / UK_PGNP + RES_UK_GNP * GREAL**TME

374: Definition of real GNP : Steady State Version (SS_UK_GNP)
UK_GNP =
UK_GDP + (US_R + UK_PREM) * UK_NFA / (US_INFL * GREAL) / UK_ER / UK_PGNP + RES_UK_GNP * GREAL**TME

375: Real wealth (financial plus discounted future income) (UK_W)
UK_W =
UK_WH + UK_WK + (UK_M + UK_B + UK_NFA / UK_ER) / UK_P

375: Real wealth (financial plus discounted future income) : Steady State Version (SS_UK_W)
UK_W =
UK_WH + UK_WK + (UK_M + UK_B + UK_NFA / UK_ER) / UK_P

376: Real disposable income (UK_YD)
UK_YD =
(UK_GDP * UK_PGNP - UK_TAX) / UK_P - UK_DELTA * UK_K(-1)

376: Real disposable income : Steady State Version (SS_UK_YD)
UK_YD =
(UK_GDP * UK_PGNP - UK_TAX) / UK_P - UK_DELTA * UK_K / GREAL

377: Total government expenditures - nominal (UK_GE)
UK_GE =
UK_P * UK_G + UK_R * UK_B(-1) + UK_GEXOG

377: Total government expenditures - nominal : Steady State Version (SS_UK_GE)
UK_GE =
UK_P * UK_G + UK_R * UK_B / (GREAL * UK_INFL) + UK_GEXOG

378: Government tax receipts (UK_TAX)
UK_TAX =
UK_TRATE * UK_PGNP * UK_GNP

378: Government tax receipts : Steady State Version (SS_UK_TAX)
UK_TAX =
UK_TRATE * UK_PGNP * UK_GNP

379: Taxes on capital (UK_TAXK)
UK_TAXK =
UK_TAXK_ALPHA * UK_TAXK_SHAR * UK_TAX + (1 - UK_TAXK_ALPHA) * UK_TRATEK * UK_BETA * UK_GDP * UK_PGNP

379: Taxes on capital : Steady State Version (SS_UK_TAXK)
UK_TAXK =
UK_TAXK_ALPHA * UK_TAXK_SHAR * UK_TAX + (1 - UK_TAXK_ALPHA) * UK_TRATEK * UK_BETA * UK_GDP * UK_PGNP

380: Taxes on labor (UK_TAXH)
UK_TAXH =
UK_TAX - UK_TAXK

380: Taxes on labor : Steady State Version (SS_UK_TAXH)
UK_TAXH =
UK_TAX - UK_TAXK

381: Average tax rate (UK_TRATE)
UK_TRATE =
UK_TRATE_EXOG * (1 - UK_TRATE_ALPHA) + UK_TRATE_ALPHA * (SUM(I =
-2 TO 2: UK_TRATE(I) / 5) + TAU1 * (UK_B(1) / (UK_GNP(1) * UK_PGNP(1)) - UK_BT_GDP_RAT(1)) + RES_UK_TRATE)

381: Average tax rate : Steady State Version (SS_UK_TRATE)
0 =
TAU1 * (UK_B / (UK_GNP * UK_PGNP) - UK_BT_GDP_RAT) + RES_UK_TRATE

382: No equation Description (UK_BT)
UK_BT =
UK_BT_GDP_RAT * UK_GNP * UK_PGNP

382: No equation Description : Steady State Version (SS_UK_BT)
UK_BT =
UK_BT_GDP_RAT * UK_GNP * UK_PGNP

383: Government balance sheet (solves for nominal government debt) (UK_B)
DEL(1: UK_B) + DEL(1: UK_M) =
UK_R * UK_B(-1) + UK_P * UK_G - UK_TAX

383: Government balance sheet (solves for nominal government debt) : Steady State Version (SS_UK_B)
(UK_B + UK_M) * (1-1 / (UK_INFL * GREAL)) =
UK_R * UK_B / (UK_INFL * GREAL) + UK_P * UK_G - UK_TAX

384: Definition of nominal government deficit (UK_GDEF)
UK_GDEF =
DEL(1: UK_B + UK_M)

384: Definition of nominal government deficit : Steady State Version (SS_UK_GDEF)
UK_GDEF =
(UK_B + UK_M) * (1-1 / (UK_INFL * GREAL))

385: Money demand function (UK_M)
LOG(UK_M / UK_P) =
UK_M0 + (1 - UK_M4) * LOG(UK_A) + UK_M2 * UK_RS + UK_M4 * LOG(UK_M(-1) / UK_P(-1)) + RES_UK_M

385: Money demand function : Steady State Version (SS_UK_M)
LOG(UK_M / UK_P) =
UK_M0 + (1 - UK_M4) * LOG(UK_A) + UK_M2 * UK_RS + UK_M4 * LOG(UK_M / UK_P / GREAL) + RES_UK_M

386: Money supply reaction function - short-term interest rate (UK_RS)
UK_RS =
(1 - UK_X_RS1) * UK_RS_EXOG + UK_X_RS1 * (UK_RS(-1) + UK_RS1 * LOG(UK_MT / UK_M) / UK_M2 + UK_RS2 * LOG(GR_ER / UK_ER / UK_PAR) + UK_RSCON2 + RES_UK_RS) + UK_RS1PERM * 0

386: Money supply reaction function - short-term interest rate : Steady State Version (SS_UK_RS)
0 =
UK_RS1PERM * LOG(UK_MT / UK_M) / UK_M2 + UK_RS2 * LOG(GR_ER / UK_ER / UK_PAR) + RES_UK_RS + 0 * UK_RS1 * UK_RS_EXOG * UK_RSCON * UK_RSCON2

387: Term structure of interest rates (solves for long-term rate) (UK_RL)
UK_RL / 100 =
((1 + UK_RS / 100) * (1 + UK_RS(1) / 100) * (1 + UK_RS(2) / 100) * (1 + UK_RS(3) / 100) * (1 + UK_RS(4) / 100) * (1 + UK_RS(5) / 100) * (1 + UK_RS(6) / 100) * (1 + UK_RS(7) / 100) * (1 + UK_RS(8) / 100) * (1 + UK_RS(9) / 100))**0.1 * (1 + UK_TPREM)-1 + RES_UK_RL

387: Term structure of interest rates (solves for long-term rate) : Steady State Version (SS_UK_RL)
UK_RL / 100 =
(1 + UK_RS / 100) * (1 + UK_TPREM)-1 + RES_UK_RL

388: Interest rate on NFA faced by industrialized countries (UK_R)
UK_R =
0.5 * UK_RS(-1) / 100+0.5 * SUM(I =
-3 TO -1: UK_RL(I) / 100) / 3

388: Interest rate on NFA faced by industrialized countries : Steady State Version (SS_UK_R)
UK_R =
0.5 * UK_RS / 100+0.5 * UK_RL / 100

389: Real long-term interest rate (ex ante) (UK_RLR)
UK_RLR =
(1 + UK_RL / 100) / (UK_P(10) / UK_P)**0.1-1

389: Real long-term interest rate (ex ante) : Steady State Version (SS_UK_RLR)
UK_RLR =
(1 + UK_RL / 100) / UK_INFL - 1

390: Real short-term interest rate (ex ante) (UK_RSR)
UK_RSR =
(1 + UK_RS / 100) / (UK_P(1) / UK_P)-1

390: Real short-term interest rate (ex ante) : Steady State Version (SS_UK_RSR)
UK_RSR =
(1 + UK_RS / 100) / UK_INFL - 1

391: Non-oil GNP deflator (UK_PGNPNO)
UK_PGNPNO =
(UK_GDP * UK_PGNP - UK_PRODOIL * POIL / UK_ER * UK_E96) / (UK_GDP - UK_PRODOIL)

391: Non-oil GNP deflator : Steady State Version (SS_UK_PGNPNO)
UK_PGNPNO =
(UK_GDP * UK_PGNP - UK_PRODOIL * POIL / UK_ER * UK_E96) / (UK_GDP - UK_PRODOIL)

392: PGNP identity (with discrepancy) (UK_P)
UK_PGNP =
(UK_P * UK_A + UK_XT * UK_PXT - UK_IT * UK_PIT) / UK_GDP + RES_UK_P * UK_PGNP

392: PGNP identity (with discrepancy) : Steady State Version (SS_UK_P)
UK_PGNP =
(UK_P * UK_A + UK_XT * UK_PXT - UK_IT * UK_PIT) / UK_GDP + RES_UK_P * UK_PGNP

393: Manufactured goods export price (UK_PXM)
DEL(1: LOG(UK_PXM)) =
UK_PXM0 + UK_PXM1 * DEL(1: LOG(UK_PGNPNO)) + (1 - UK_PXM1) * DEL(1: LOG(UK_PFM)) + UK_PXM2 * LOG(UK_PGNPNO(-1) / UK_PXM(-1)) + RES_UK_PXM

393: Manufactured goods export price : Steady State Version (SS_UK_PXM)
UK_INFL =
UK_PXM0 + UK_PXM1 * UK_INFL + (1 - UK_PXM1) * UK_INFL + UK_PXM2 * LOG(UK_PGNPNO / UK_PXM) + RES_UK_PXM

394: Total export price (UK_PXT)
UK_PXT =
(UK_XMA * UK_PXM + POIL / UK_ER * UK_E96 * UK_XOIL) / UK_XT

394: Total export price : Steady State Version (SS_UK_PXT)
UK_PXT =
(UK_XMA * UK_PXM + POIL / UK_ER * UK_E96 * UK_XOIL) / UK_XT

395: Manufactured goods import price (UK_PIM)
UK_PIM =
(S0106 * US_PXM + S0206 * JA_PXM * JA_ER / JA_E96 + S0306 * GR_PXM * GR_ER / GR_E96 + S0406 * FR_PXM * FR_ER / FR_E96 + S0506 * IT_PXM * IT_ER / IT_E96 + S0606 * UK_PXM * UK_ER / UK_E96 + S0706 * CA_PXM * CA_ER / CA_E96 + S0806 * SI_PXM * SI_ER / SI_E96 + S0906 * RW_PXM * RW_ER / RW_E96) / (UK_ER / UK_E96) * (1 + RES_UK_PIM)

395: Manufactured goods import price : Steady State Version (SS_UK_PIM)
UK_PIM =
(S0106 * US_PXM + S0206 * JA_PXM * JA_ER / JA_E96 + S0306 * GR_PXM * GR_ER / GR_E96 + S0406 * FR_PXM * FR_ER / FR_E96 + S0506 * IT_PXM * IT_ER / IT_E96 + S0606 * UK_PXM * UK_ER / UK_E96 + S0706 * CA_PXM * CA_ER / CA_E96 + S0806 * SI_PXM * SI_ER / SI_E96 + S0906 * RW_PXM * RW_ER / RW_E96) / (UK_ER / UK_E96) * (1 + RES_UK_PIM)

396: Import price for manufactured goods - adjusted for world trade discrepancy (UK_PIMA)
UK_PIMA =
UK_PIM + T06 * (WTRADE - TRDE * GREAL**TME * US_INFL**TME) / UK_ER / UK_IM

396: Import price for manufactured goods - adjusted for world trade discrepancy : Steady State Version (SS_UK_PIMA)
UK_PIMA =
UK_PIM + T06 * (WTRADE - TRDE * GREAL**TME * US_INFL**TME) / UK_ER / UK_IM

397: Total import price (UK_PIT)
UK_PIT =
(UK_IM * UK_PIMA + UK_IOIL * POIL / UK_ER * UK_E96 + UK_ICOM * PCOM / UK_ER * UK_E96) / UK_IT

397: Total import price : Steady State Version (SS_UK_PIT)
UK_PIT =
(UK_IM * UK_PIMA + UK_IOIL * POIL / UK_ER * UK_E96 + UK_ICOM * PCOM / UK_ER * UK_E96) / UK_IT

398: No equation Description (UK_TFP_FE)
LOG(UK_TFP_FE) =
RES_UK_TFP_FE

398: No equation Description : Steady State Version (SS_UK_TFP_FE)
LOG(UK_TFP_FE) =
RES_UK_TFP_FE

399: Full-employment output production function (UK_GDP_FE)
UK_GDP_FE =
UK_TFP_FE * UK_K**UK_BETA * ((1 - UK_UNR_FE / 100) * UK_LF)**(1 - UK_BETA)

399: Full-employment output production function : Steady State Version (SS_UK_GDP_FE)
UK_GDP_FE =
UK_TFP_FE * UK_K**UK_BETA * ((1 - UK_UNR_FE / 100) * UK_LF)**(1 - UK_BETA)

400: Labor force (UK_LF)
UK_LF =
UK_POP * UK_PART / (1 + UK_DEM3)

400: Labor force : Steady State Version (SS_UK_LF)
UK_LF =
UK_POP * UK_PART / (1 + UK_DEM3)

401: Capacity utilization (UK_CU)
UK_CU =
100 * UK_GDP / UK_GDP_FE

401: Capacity utilization : Steady State Version (SS_UK_CU)
UK_CU =
100 * UK_GDP / UK_GDP_FE

402: Balance of payments (claims on foreigners), current U.S. dollars (UK_NFA)
DEL(1: UK_NFA) =
(UK_XT * UK_PXT - UK_IT * UK_PIT) * UK_ER + (US_R + SUM(I =
-3 TO -1: UK_PREM(I)) / 3) * UK_NFA(-1) + RES_UK_NFA * US_INFL**TME * GREAL**TME

402: Balance of payments (claims on foreigners), current U.S. dollars : Steady State Version (SS_UK_NFA)
UK_NFA * (1-1 / (US_INFL * GREAL)) =
(UK_XT * UK_PXT - UK_IT * UK_PIT) * UK_ER + (US_R + UK_PREM) * UK_NFA / (US_INFL * GREAL) + RES_UK_NFA * US_INFL**TME * GREAL**TME

403: Trade balance - local currency (UK_TB)
UK_TB =
UK_XT * UK_PXT - UK_IT * UK_PIT

403: Trade balance - local currency : Steady State Version (SS_UK_TB)
UK_TB =
UK_XT * UK_PXT - UK_IT * UK_PIT

404: Current account - current U.S. dollars (UK_CURBAL)
UK_CURBAL =
DEL(1: UK_NFA)

404: Current account - current U.S. dollars : Steady State Version (SS_UK_CURBAL)
UK_CURBAL =
UK_NFA * (1-1 / (US_INFL * GREAL))

405: Open interest parity condition (solves for exchange rate) (UK_ER)
1 + US_RS / 100 =
(1 + UK_RS / 100) * UK_ER(1) / UK_ER - UK_PREM + RES_UK_ER

405: Open interest parity condition (solves for exchange rate) : Steady State Version (SS_UK_ER)
1 + US_RS / 100 =
(1 + UK_RS / 100) * US_INFL / UK_INFL - UK_PREM + RES_UK_ER

406: Real effective exchange rate (relative export price) (UK_RCI)
UK_RCI =
LOG(UK_PXM) - LOG(UK_PFM)

406: Real effective exchange rate (relative export price) : Steady State Version (SS_UK_RCI)
UK_RCI =
LOG(UK_PXM) - LOG(UK_PFM)

407: Weighted average of foreign activity (UK_FACT)
UK_FACT =
(US_IM * US_E96 * S0601 + JA_IM * JA_E96 * S0602 + GR_IM * GR_E96 * S0603 + FR_IM * FR_E96 * S0604 + IT_IM * IT_E96 * S0605 + UK_IM * UK_E96 * S0606 + CA_IM * CA_E96 * S0607 + SI_IM * SI_E96 * S0608 + (HO_IM + DC_IM) * RW_E96 * S0609) / UK_E96

407: Weighted average of foreign activity : Steady State Version (SS_UK_FACT)
UK_FACT =
(US_IM * US_E96 * S0601 + JA_IM * JA_E96 * S0602 + GR_IM * GR_E96 * S0603 + FR_IM * FR_E96 * S0604 + IT_IM * IT_E96 * S0605 + UK_IM * UK_E96 * S0606 + CA_IM * CA_E96 * S0607 + SI_IM * SI_E96 * S0608 + (HO_IM + DC_IM) * RW_E96 * S0609) / UK_E96

408: Prices in foreign markets (UK_PFM)
LOG(UK_PFM) =
W0601 * LOG(US_PXM * US_ER / US_E96) + W0602 * LOG(JA_PXM * JA_ER / JA_E96) + W0603 * LOG(GR_PXM * GR_ER / GR_E96) + W0604 * LOG(FR_PXM * FR_ER / FR_E96) + W0605 * LOG(IT_PXM * IT_ER / IT_E96) + W0606 * LOG(UK_ER / UK_E96) + W0607 * LOG(CA_PXM * CA_ER / CA_E96) + W0608 * LOG(SI_PXM * SI_ER / SI_E96) + W0609 * LOG(RW_PXM * RW_ER / RW_E96)

408: Prices in foreign markets : Steady State Version (SS_UK_PFM)
LOG(UK_PFM) =
W0601 * LOG(US_PXM * US_ER / US_E96) + W0602 * LOG(JA_PXM * JA_ER / JA_E96) + W0603 * LOG(GR_PXM * GR_ER / GR_E96) + W0604 * LOG(FR_PXM * FR_ER / FR_E96) + W0605 * LOG(IT_PXM * IT_ER / IT_E96) + W0606 * LOG(UK_ER / UK_E96) + W0607 * LOG(CA_PXM * CA_ER / CA_E96) + W0608 * LOG(SI_PXM * SI_ER / SI_E96) + W0609 * LOG(RW_PXM * RW_ER / RW_E96)

409: Nominal effective exchange rate (UK_NEER)
UK_NEER =
EXP( - V0601 * LOG(US_ER / US_E96) - V0602 * LOG(JA_ER / JA_E96) - V0603 * LOG(GR_ER / GR_E96) - V0604 * LOG(FR_ER / FR_E96) - V0605 * LOG(IT_ER / IT_E96) + LOG(UK_ER / UK_E96) - V0607 * LOG(CA_ER / CA_E96) - V0608 * LOG(SI_ER / SI_E96))

409: Nominal effective exchange rate : Steady State Version (SS_UK_NEER)
UK_NEER =
EXP( - V0601 * LOG(US_ER / US_E96) - V0602 * LOG(JA_ER / JA_E96) - V0603 * LOG(GR_ER / GR_E96) - V0604 * LOG(FR_ER / FR_E96) - V0605 * LOG(IT_ER / IT_E96) + LOG(UK_ER / UK_E96) - V0607 * LOG(CA_ER / CA_E96) - V0608 * LOG(SI_ER / SI_E96))