RDP 7901: Estimation and Statistical Evaluation of an Economic Model Attachment A

The non-linearities in the specification of the late-77 version of the RBA76 model, as reported in Section 7 of Jonson et al (1977), are given below:

1. log (y − T_1/p + c) in log
2. (4.0 B₇ (y−g₁)/K − r + 4.0 Dlog P) in
3. ((1−B₇) (y−g₁)/L − w/p) in î
4. S = d + DK + x + g₁ + g₂ in log , log î and log ŷ
5. log ŷ = log (S − î)
6. log Î = log (I_or.B)
7. DR = P_xx − EP_ii + DF
8. DC = P_gg₁ + P_g2 +P_gc + I − T₁ − T₂ − DB + DA
9. DM = DR + DC
10. DV = y + i − d − DK − x − g₁ − g₂