Appendix 1:  Steady-state equations

Please note that the definitions of variable names are available in Appendix 3.

Notation:

Endogenous variables are in bold.
Trend variables are denoted by _eq at the end.
Policy variables are denoted by POL at the beginning.
Paramaters are denoted by pa at the beginning.
Lag variables are denoted by (-k) after the variable name; lags of one quarter are denoted by (-1).
Lead variables are denoted by (+k) after the variable name; leads of one quarter are denoted by (+1).

The production block

rpklr =rpydo*ar

a1 =a1(-1)*exp(beta*0.25)

a3 =a3(-1)*exp(beta2*0.25)

a5 =a5(-1)*exp(beta1*0.25)

pna10 =ydo+exrsr-imsr

gna10 =rhwpu_eq*puhr_eq*13/1000*ngg_eq

gr = (beta*0.25+popgr_eq+1)

gr_1 =(gr-1)

Labour market

ngggr = popgr_eq

partt=100*nts/(rpop3_eq*(pop3_eq+pop4_eq))

partt = partt_eq

urt = nairu

urt=100*(1-(nsr+ngg_eq)/nts)

nt =nsr+ngg_eq

ngg_eq = ngg_eq(-1)*exp(ngggr)

nthpr1 =nthsr

nthsr =nsr*prhr_eq*13/1000

rwa =rhw*prhr_eq*13/1000

Real exchange rate

rdos=-1*(rpexc*cexp+rpexnc*ncexp-(rpmo/(1+pol5_eq))*imsr-(rpmc/(1+pol5_eq))*imc-(rpmcs/(1+pol5_eq))*imcs-(rpmca/(1+pol5_eq))*imca+rtrospr-rtrpuos+ryospr+ryospu+rmtransfer_eq)

re =(1+pol5_eq)*(pimof)/rpmo

re= (1+pol5_eq)*(pimcf)/rpmc

re= (1+pol5_eq)*(pimcsf)/rpmcs

re= (1+pol5_eq)*(pimcaf)/rpmca

rpm =(rpmo*imo+rpmc*imc+rpmcs*imcs+rpmca*imca)/im

rer =re

rer=e*pydo

rpexc =(pexcf)/re

rpexncg =(pexncgf)/re

rpexncs =(pexncsf)/re

rpexnc =(ncexps*rpexncs+ncexpg*rpexncg)/ncexp

etwit =e*exp(c4800)

Deflators

1=(dw₁+dw₂)*(rpyd_c-dw₇*rpmc-dw₈*rpmcs)/dw₆+dw₃*rpyd_h+dw₄*rpexnc+dw₅*rpyd_gc

rpyd_i =(dw₉*((rpyd_c-dw₇*rpmc-dw₈*rpmcs)/dw₆)+dw₁₀*rpmca)

log(rpyd_h)=(pa801+pa803*TF)

pydo =pydo(-1)*exp(inf_pydo)

International capital flows

rdos =rfdebt*exp(gr_1)-rfdebt

rfdebt1 =rfdebt+rdos

(rb-rzpa-rzp+rapa+rap-0.3*rnzsal)=pagdpr_eq*rgdp

rpfaa =(rb-rzpa-rzp+rapa+rap-0.3*rnzsal)

dgdpr =rfdebt/rgdp

fdgdpr =dgdpr

rtnziaa =tnziar_eq*rgdp

rfdebt =rtfinza-rtnziaa

rtfinza =rzpa+rzp+rzga+rzg

rzp =fpdratio_eq*(rzp+rzpa)

rapa =rtnziaa*0.2

rap =0.8*rtnziaa-0.7*rnzsal

ryospr =-((rif_eq+ereturn)*(rzp)+(ri_eq+ereturn)*rzpa) +(rif_eq+ereturn)*(rap)+(ri_eq+ereturn)*rapa

ryospu =-((rif_eq)*(rzg)+(ri_eq)*rzga)+(rif_eq)*(0.7*(rnzsal))