Some questions about CIA model (Chatpter3) by Carl E. Walsh

Hi everybody,
According CIA dynamics (chapter 3) by Carl E. Walsh, I coded inflation5.mod in Dynare 4.2.0. But the codes (CIA.mod) provided by Carl E. Walsh is quite different from me.

My questions are:

  1. I have no idea of the row of 22-25 in CIA.mod. what does it mean?
  2. The 35th row in CIA.mod is quite different from the 23rd row in my inflation5.mod.There is an additional (ISS/(1+ISS). Why?
  3.      Is anything wrong in my code, inflation5.mod?

Can anyone help me please?
Thanks a lot in advance.

Jessica L
inflation5.mod (786 Bytes)
CIA.mod (1.11 KB)
CIA model.pdf (30.3 KB)

Are my questions boring? Why nobody would like answer them?
Or maybe they are not good questions.
Any advise is desired.

  1. He defines a bunch of parameters that are not used in the model. They are redundant and I have no idea why they are there as they serve no purpose.
  2. There are two possibilities. First, the equation in the pdf is wrong, maybe due to a typo at loglinearization and the mod-file equation is correct. Second, the pdf-equation is correct and the mod-file is simply wrong. I can’t tell. Please check with the original non-linear FOC
  3. At first sight your code seems to be correct and better than written than the original. Hence, I would rather trust your mod-file.

dear jpfeifer
thank you very much!