Preface
1. Introduction
1.1 Background
1.2 The Cowles Commission Approach
1.3 The Real Business Cycle Approach
1.4 The New Keynesian Economics
1.5 Looking Ahead
2. Theory
2.1 One Country
2.1.1 Background
2.1.2 Household Behavior
2.1.3 Firm Behavior
2.1.4 Bank and Government Behavior
2.1.5 The Complete Model
2.2 Two Countries
2.2.1 Background
2.2.2 Notation
2.2.3 Equations
2.2.4 Closing the Model
2.2.5 Links in the Model
2.2.6 Properties of the Models
2.2.7 The Use of Reaction Functions
2.2.8 Further Aggregation
3. The Data, Variables, and Equations
3.1 Transition from Theory to Empirical Specifications
3.2 The US Model
3.2.1 The Tables (Tables A.1A.9)
3.2.2 The Raw Data
3.2.3 Variable Construction
3.2.4 The Identities
3.2.5 The Stochastic Equations
3.3 The ROW Model
3.3.1 The Tables (Tables B.1B.7)
3.3.2 The Raw Data
3.3.3 Variable Construction
3.3.4 The Identities
3.3.5 The Stochastic Equations
3.3.6 The Linking Equations
4. Estimating and Testing Single Equations
5. The Stochastic Equations of the US Model
5.1 Introduction
5.2 Household Expenditure and Labor Supply Equations
5.3 Money Demand Equations
5.4 The Main Firm Sector Equations
5.5 Other Firm Sector Equations
5.6 Financial Sector Equations
5.7 The Import Equation
5.8 Government Sector Equations
5.9 Interest Payment Equations
5.10 Additional Comments
6. The Stochastic Equations of the ROW Model
6.1 Introduction
6.2 Equation 1. M: Merchandise Imports
6.3 Equation 2. C: Consumption
6.4 Equation 3. I: Fixed Investment
6.5 Equation 4. Y: Production
6.6 Equation 5. PY: Price Index
6.7 Equation 6. M1: Money
6.8 Equation 7. RS: Short Term Interest Rate
6.9 Equation 8. RB: Long Term Interest Rate
6.10 Equation 9. E: Exchange Rate
6.11 Equation 10. F: Forward Rate
6.12 Equation 11. PX: Export Price Index
6.13 Equation 12. W: Wage Rate
6.14 Equation 13. J: Employment
6.15 Equation 14. L1: Labor ForceMen; Equation 15: L2: Labor ForceWomen
6.16 The Trade Share Equations
6.17 Additional Comments
7. Estimating and Testing Complete Models
8. Estimating and Testing the US Model
9. Testing the MC Model
10. Analyzing Properties of Models
11. Analyzing Properties of the US Model
12. Analyzing Properties of the MC Model
13. Conclusion
Bibliography
Appendix A: Tables for the US Model
(MC2 Version)
Table A.1: The Six Sectors
Table A.2: Variables in Alphabetical Order
Table A.3: The Equations
Table A.4: The Raw Data Variables
Table A.5: Links between NIPA and FFA
Table A.6: Construction of the Variables
Table A.7: First Stage Regressors
Table A.8: Solution under Alternative Monetary Policy Assumptions
Table A.9: Cross Reference Chart
Chapter 5 Tables: November 3, 1998
Equation 1
Equation 2
Equation 3
Equation 4
Equation 5
Equation 6
Equation 7
Equation 8
Equation 9
Equation 10
Equation 11
Equation 12
Equation 13
Equation 14
Equation 15
Equation 16
Equation 17
Equation 18
Equation 20
Equation 21
Equation 22
Equation 23
Equation 24
Equation 25
Equation 26
Equation 27
Equation 28
Equation 30
Appendix B: Tables for the ROW Model
(MC2 Version)
Table B.1: The Countries and Variables in the MM Model
Table B.2: The Variables for a Given Country in Alphabetical Order
Table B.3: The Equations for a Given Country
Table B.4: Equations the Pertain to the Trade and Price Links Among Countries
Table B.5: Links Between the US and ROW Models
Table B.6: The Procedure Used to Create Quarterly Data from Annual Data
Table B.7: Construction of the Balance of Payments Data: Data for S and TT
Chapter 6 Tables: December 27, 1998
Equation 1: Estimates
Equation 2: Estimates
Equation 3: Estimates
Equation 4: Estimates
Equation 5: Estimates
Equation 6: Estimates
Equation 7: Estimates
Equation 8: Estimates
Equation 9: Estimates
Equation 10: Estimates
Equation 11: Estimates
Equation 12: Estimates
Equation 13: Estimates
Equation 14: Estimates
Equation 15: Estimates
Equation 1: Tests
Equation 2: Tests
Equation 3: Tests
Equation 4: Tests
Equation 5: Tests
Equation 6: Tests
Equation 7: Tests
Equation 8: Tests
Equation 9: Tests
Equation 11: Tests
Equation 12: Tests
Equation 13: Tests
Equation 14: Tests
Equation 15: Tests
