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SGU_2003.mod: fix missing division by 2
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Closes #21. Thanks to Camilo Marchesini
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JohannesPfeifer committed Nov 21, 2023
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Showing 1 changed file with 3 additions and 2 deletions.
5 changes: 3 additions & 2 deletions SGU_2003/SGU_2003.mod
Original file line number Diff line number Diff line change
Expand Up @@ -14,6 +14,7 @@
* tb_y = 1-(c+i+(phi/2)*(k-k(-1))^2)/y;
* Note that this change does not affect any of the results presented in the paper, because they were obtained at first order
* and the first order derivative of this term is 0.
* - Thanks go to Camilo Marchesini for spotting a mistake.
*
* This implementation was written by Johannes Pfeifer. If you spot any mistakes,
* email me at [email protected].
Expand All @@ -22,7 +23,7 @@
*/

/*
* Copyright (C) 2015 Johannes Pfeifer
* Copyright (C) 2015-2023 Johannes Pfeifer
*
* This is free software: you can redistribute it and/or modify
* it under the terms of the GNU General Public License as published by
Expand Down Expand Up @@ -260,7 +261,7 @@ parameters beta ${\beta}$;

model;
[name='Eq. (29), Evolution of debt']
d = (1+exp(r(-1)))*d(-1)- exp(y)+exp(c)+exp(i)+(phi/2)*(exp(k)-exp(k(-1)))^2+psi_3*(d-d_bar)^2;
d = (1+exp(r(-1)))*d(-1)- exp(y)+exp(c)+exp(i)+(phi/2)*(exp(k)-exp(k(-1)))^2+psi_3/2*(d-d_bar)^2;
[name='Eq. (5), Production function']
exp(y) = exp(a)*(exp(k(-1))^alpha)*(exp(h)^(1-alpha));
[name='Eq. (6), Law of motion for capital']
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