As an example of the Model Description Language of
Modeleasy+, the consumption equation of the famous Klein1 model is written below in the
MDL syntax.
BEHAVIORAL>
CONSUMPTION
EQ> C = A1 + A2*P + A3*LAG(P,1) + A4*(W1+W2)
COEFF> A1 A2 A3 A4
DEFINECOEFF> A_COEFF
where the total consumption,
C, is determined by the total profits, P, and the private and government wages,
W1 and W2, respectively.
As can be seen above, the MDL description of the
Klein1 model is driven by the keywords BEHAVORIAL>, EQ>, COEFF>, and
DEFINECOEF>. These keywords identify the
consumption equation as a behavioral equation which has the form specified on the
EQ> line and has coefficients A1, A2, A3, and A4. The final keyword, DEFINECOEFF>,
names the variable where the
values of the coefficients are to be found. In the case of an estimation, the values will
be stored in the A_COEFF array,
while in the case of a simulation, the values will be looked up in the
A_COEFF array.
