# 2018 Version of the FRB/US Model

### Overview of the Changes to the FRB/US Model

### Simplification in modeling energy and the supply-side

- Petroleum imports (EMP)
- Business Potential Output (XGPOT and XBT)

### Simplification of Business Investment

### Simplification of the government sector

- Federal Government Budget
- State and Local Government Expenditures
- Federal Government Expenditures
- Government Transfer Payments
- Personal Income Tax and Non-Tax Receipts
- Corporate Income Tax

### Miscellaneous simplifications and changes

- Imports excluding Petroleum (EMO and PMO)
- Household Permanent Income Components
- Desired level of consumption (QEC)
- PICNIA: Inflation rate, personal consumption expenditures
- Corporate profits (YNICPN)
- Consumption of fixed capital (JCCAN)

### Simplification of aggregation in the model

### Elimination of compounded annualized rates