chapter  6
THE COMPLETE MODEL
Pages 26

Having developed the models for the household sector, the commercial banking sector and the firm, we will now specify models for the remaining sectors as required by our model and then the full model with the necessary consistency conditions. The missing sectors are the central bank, the government, the external sector and the supply side. To make it easier to understand, the equations and the estimates of the last three chapters are first reproduced along with the necessary definitional relationships left out from those chapters. This task is accomplished in the following section. The chapter ends with some within-sample dynamic simulations for the complete model.