RDP 2018-04: DSGE Reno: Adding a Housing Block to a Small Open Economy Model
Equation (12)
Δ
(
k
)
f
,
t
=
(
P
(
k
)
f
,
t
−
M
C
(
k
)
f
,
t
P
t
)
Y
(
k
)
f
,
t
−
τ
π
f
2
[
P
(
k
)
f
,
t
π
f
,
t
−
1
χ
f
Π
f
1
−
χ
f
P
(
k
)
f
,
t
−
1
]
2
P
f
,
t
Y
f
,
t
P
t
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