# Consumption of fixed capital (JCCAN)

## Changes to the FRB/US Model

JCCAN: Consumption of fixed capital
Old model

    jccan - jccan_aerr = jygfgn + jygfen + jygsgn + jygsen
     + .01*ujcca*pxp(-1)*(phr(-1)*kh(-1)*jrh + ppsr(-1)*kps(-1)*jrps
     + pkpdr(-1)*kpd(-1)*jrpd)

New model

    jccan/xgdpn - jccan_aerr = y_jccan(1)*(1 - y_jccan(2))
     + y_jccan(2)*jccan(-1)/xgdpn(-1)
     + (1 - y_jccan(2))*pkbfir(-1)*kbfi(-1)*jrbfi*pxp(-1)*.01/xgdpn(-1)

## Details about the Simplifications

- The equation is now specified as ratio of nominal GDP (XGDPN).

- The simplification of JCCAN and the fiscal sector allowed us to eliminate from the model the variables corresponding to the following subcategories of consumption of fixed capital (CFC):
  - JYGFEN: CFC, federal government enterprises, current $
  - JYGFGN: CFC, federal government, general, current $
  - JYGSEN: CFC, state and local government enterprises, current $
  - JYGSGN: CFC, state and local government, general, current $
- The multiplicative factor, UJCCA, of the JCCAN identity has also been eliminated.
- The corporate measure of CFC was also eliminated:
  - JCCACN: Consumption of fixed capital, corporate, current $
  - UJCCAC: Multiplicative factor in JCCACN identity