Sentence examples for behavioral equation from inspiring English sources
Optimal discretionary policy emerges because the implied behavioral equation is identical with that under commitment to the social loss function.
The other set comprises of the behavioral equations which is based on microeconomic theory and describes the behavior of optimizing agents in the economy like demand function and supply function.
The multiplier accelerator part of the model consists of an income identity and four behavioral equations.
In this paper we demonstrate that behavioral equations provide a suitable framework for time-domain transmissibilities by choosing the latent variables in the behavioral equations to be the external signals that drive the system.
This allows to obtain behavioral equations involving only manifest variables, starting from models that contain also latent variables.
The parameters of the model are calibrated on the FSAM and the system of behavioral equations is solved using the GAMS software.
Moving on to the behavioral equations, the consumption function following Puu (2007) is given by: Cleft( t right) = left( {1 - s} right)Y^{d} left( {t - 1} right) + sY^{d} left( {t - 2} right) (3)where s ∊ (0, 1) is the marginal propensity to save and Y^{d} left( t right) = Yleft( t right) - Tleft( t right) (4 is the disposable income.
Adam et al. (1998) shows that the CGE model has two distinctive features; first, it incorporates a number of distinct sectors, and secondly, the model is characterized with a number of behavioral equations that deal with the response of industries and consumers against changes in relative prices.
The behavioral equations of this system explain the expenditures; the revenues are given by definition.
It is a dynamic model because of the capital stock adjustment and the lags in behavioral equations.
The model is non-linear, due to the many multiplicative connections of variables in definitions and many behavioral equations estimated in double logarithms (Großmann and Wolter, 2010).
