An Estimated DSGE Model of the Indian Economy.

Y-.,_t
Nf

Ni

_____________________%C1,t____________________

(1 - %) Lf ^nF + (1 - nF) ( Lj1F )     )

____________________%C1 ,t____________________

^{(1 -} %) ^l 11 (nF ( '∣V. ) %(   ) ^{+ 1 -} nF )

____________________%^C2 ,t____________________

^{(1 -} %) ^l21 μnF ( ⅛ ) %(   ) ^{+ 1 -} nF )

C2,t

^l 1 i

(1 - Ci)(NiAi,t)^αiK¹₁^-αi ; i = F, I

(1 - A) nF h 1F

(1 - A)(1 - nF)h 11 + Ah21

WF,t

Wi,t

Wi,t

h 21SVi,t

h 1 i ; i = I, F

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P. P W Y W
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PNi

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PKi,t

αi

P ^w yW
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Ri + δ

; i = I,F

It

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Ni,t

^{(1 - φ}i ) D F,t

(1 - φi(1 + Ri))

; i = I,F

1 + Ri

PREMi

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e ^e

^Ci,t

(1 + R) Si

i = I, F

Ri

R ; i = I,F

1 - φi

φi

Ni,t ; i = I,F

Yit

C'I,t =

(₁ - w) (PI)

-μ

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C F,t + G t = w

F'i

-μ

Ct + It + G t

^PF G
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nF hF TF,t + ni hi Ti,t

Ti,t

TiWi,t ; i = F,I

τi,t

Pi

kτ-F,t

W
P_i

i = I, F

39

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