Table of contents Chapter 10 Notes on EViews version Notation Copyright Comments Guestbook
Model INSOUT  Model INSOUT version 2
Model INSOUT puts together all sectors analyzed in the previous models.
Since the model is rather complex, and it is analyzed in detail through several different exercises,
we have produced separate macros for separate tasks.
Download: gl10insout (Eviews 5 to 8) or gl10insout_v4 (Eviews 4.1)
Download the macro above to generate a baseline solution. Then choose one (or maybe all) of the macros below to replicate exercises in the book.
Note that the macro INSOUT.PRG contains some inactive equations for alternative versions of the model. For instance, you may want to switch to asset demand functions governed by nominal interest rates by activating the corresponding equations, and deactivating the current equations where asset demands depend on real rates.
List of all variables in model INSOUT  
ENDOGENOUS VARIABLES  EXOGENOUS VARIABLES AND PARAMETERS  
A_D  Eq72 Demand for Central bank advances from commercial banks  ER_RBL  Expected rate of return on long term bonds  
A_S  Eq62 Supply of Central bank advances to commercial banks  G_K  Real government expenditures  
B_BD  Eq74 Government bills demanded by commercial banks  N_FE  Full Employment level  
B_BDN  Eq70 Notional demand for government bills from commercial banks  PR  Labour productivity  
B_CB  Eq60 Government bills held by Central bank  R_B_BAR  Interest rate on bills  set exogenously  
B_HD  Eq38 Demand for government bills  R_BL_BAR  Interest rate on bonds  set exogenously  
B_HH  Eq44 Government bills held by households  
B_S  Eq54 Supply of government bills  BOT  Bottom value for bank net liquidity ratio  
BL_D  Eq39 Demand for government bonds  TOP  Top value for bank net liquidity ratio  
BL_H  Eq45 Government bonds held by households  BOTPM  Bottom value for bank profit margin  
BL_S  Eq55 Supply of government bonds  TOPPM  Top value for bank profit margin  
BLR  Eq75 Gross bank liquidity ratio  
BLR_N  Eq71 Net bank liquidity ratio  α_{i}  Par. influencing consumption  
BPM  Eq85 Banks  β  Par. in expectation formations on real sales  
C_K  Eq30 Real consumption  ε  Par. in expectation formations on real disposable income  
CG  Eq22 Capital gains on government bonds  γ  Speed of adjustment of inventories to the target level  
CONS  Eq32 Consumption at current prices  λ_{ij}  Par. in households demand for financial assets  
F  Eq24 Realized profits of firms and banks  ω_{1,2}  Par. influencing the target real wage for workers  
F_B  Eq81 Realized banks profits  ω_{3}  Speed of adjustment of wages to target value  
F_CB  Eq64 Central bank  φ  Markup on unit costs  
F_F  Eq19 Realized firms profits  ρ_{i}  Reserve requirement parameters  
F_F_E  Eq12 Expected profits of firms  σ_{i}  Par. determining the target inventories to sales ratio  
G  Eq52 Government expenditures  τ  Sales tax rate  
H_BD  Eq69 Cash required by banks  ξ_{b}  Par. influencing the interest rate on deposits  
H_BS  Eq59 Cash supplied to banks  ξ_{l}  Par. influencing the interest rate on loans  
H_HD  Eq35 Households demand for cash  
H_HH  Eq43 Cash held by households  Download: 

H_HS  Eq65 Cash supplied to households  
H_S  Eq58 Total supply of cash  
IN  Eq17 Stock of inventories at current costs 


IN_K  Eq15 Real inventories  to generate a baseline solution. 

IN_K_E  Eq9 Expected real inventories  
IN_K_T  Eq6 Target level of real inventories  Download: 

L_D  Eq18 Demand for loans  
L_S  Eq68 Supply of loans  if you want the complete Eviews workfile. 

M1_H  Eq47 Checking deposits held by households  
M1_HN  Eq46 Notional holdings of checking deposits  
M1_S  Eq66 Checking deposits supplied by banks  
M2_D  Eq37 Demand for term deposits  constrained to be nonnegative  
M2_H  Eq49 Term deposits held by households  
M2_S  Eq67 Term deposits supplied by banks  
N  Eq2 Employment level  
NHUC  Eq11 Normal historic unit costs  
ω^{T}  Eq86 Target real wage for workers  
P  Eq10 Price level  
P_BL  Eq56 Price of government bonds  
π  Eq20 Price inflation  
PSBR  Eq53 Government deficit  
R_A  Eq63 Interest rate on Central bank advances  
R_B  Eq61 Interest rate on government bills  
R_BL  Eq57 Interest rate on bonds  
R_L  Eq82 Interest rate on loans  
R_M  Eq76 Interest rate on deposits  
RR_B  Eq41 Real interest rate on bills  
RR_BL  Eq42 Real interest rate on long term bonds  
RR_L  Eq8 Real interest rate on loans  
RR_M  Eq40 Real interest rate on term deposits  
S  Eq14 Sales at current prices  
S_K  Eq13 Real sales  
S_K_E  Eq5 Expected real sales  
σ^{S}  Eq16 Realized inventories to sales ratio  
σ^{T}  Eq7 Target inventories to sales ratio  
T  Eq51 Taxes  
UC  Eq4 Unit costs  
V  Eq25 Wealth of households  
V_E  Eq34 Expected households wealth  
V_K  Eq29 Real wealth of households  
V_NC  Eq26 Wealth of households, net of cash  
V_NC_E  Eq36 Expected wealth of households, net of cash  
W  Eq87 Wage rate  
WB  Eq3 The wage bill  
Y  Eq88 Output at current prices  
Y_K  Eq1 Real output  
YD_HS  Eq23 HaigSimons measure of disposable income  
YD_K_HS  Eq28 HaigSimons measure of real disposable income  
YD_K_R  Eq27 Regular real disposable income  
YD_K_R_E  Eq31 Expected regular real disposable income  
YD_R  Eq21 Regular disposable income  
YD_R_E  Eq33 Expected regular disposable income  
Z_{i}  Eqs 48; 50; 73; 77; 78; 79; 80; 83; 84 Status variables 
Download: gl10insout1 (Eviews 5 to 8) or gl10insout1_v4 (Eviews 4.1)
Download the macro above to generate the charts in figures 10.1A to 10.1I.
Download: gl10insout2 (Eviews 5 to 8) or gl10insout2_v4 (Eviews 4.1)
Download the macro above to generate the charts in figures 10.2A to 10.2J.
Download: gl10insout3 (Eviews 5 to 8) or gl10insout3_v4 (Eviews 4.1)
Download the macro above to generate the charts in figures 10.3A to 10.3E.
Download: gl10insout4 (Eviews 5 to 8) or gl10insout4_v4 (Eviews 4.1)
Download the macro above to generate the charts in figures 10.4A to 10.4D.
Download: gl10insout5 (Eviews 5 to 8) or gl10insout5_v4 (Eviews 4.1)
Download the macro above to generate the charts in figures 10.5A to 10.5B.
Download: gl10insout6 (Eviews 5 to 8) or gl10insout6_v4 (Eviews 4.1)
Download the macro above to generate the charts in figures 10.6A to 10.6D.
Download: gl10insout7 (Eviews 5 to 8) or gl10insout7_v4 (Eviews 4.1)
Download the macro above to generate model INSOUTb and the charts in figures 10.7A to 10.7C.