MODEL > EXAMPLE7

ENDOG> 

          y   _DATA
        inf   _NOTD
         dr   _DATA
         rs   _NOTD
        one   _DTRM
        is_   _NOTD
        dr_   _NOTD

EQUATION >  is
EQTYPE >    IMPOSED
EQ >        y = LEAD(y,1) - (1/sigma)*(rs-LEAD(inf,1)) + is_


EQUATION >  phillips
EQTYPE >    IMPOSED
EQ >        inf = delta*LEAD(inf,1) + lambda*y

EQUATION >  dr
EQTYPE >    IMPOSED
EQ >        dr = rs - LAG(rs,1) + dr_

EQUATION >  policy
EQTYPE >    IMPOSED
EQ >        rs  =  rho*LAG(rs,1) + gampi*inf

EQUATION >  one
EQTYPE >    IMPOSED
EQ >        one  =  LAG(one,1)

EQUATION >  is_
EQTYPE >    STOCH
EQ >        is_  =  0*one

EQUATION >  dr_
EQTYPE >    STOCH
EQ >        dr_  =  0*one

END
