Page 43 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 2, 2013, pp. 32-66

The Model's Main Coefficients and the Constant Terms
Coefficient
No. Symbol Coefficient's Name
13 γ 1 Other Exports Coefficient of World Economic Growth

14 γ 2 Other Exports Coefficient of Real Exchange rate
15 γ 3 Other Exports Coefficient of Terms of Trade
16 α m Constant Term -commodity imports by by commodity Type
17 ν n1 Total Commodity Imports Coefficient/Output
18 ν n2 Total Commodity Imports Coefficient/Imports relative Prices

19 ν n3 Total Commodity Imports Coefficient/Lagged Commodity Imports
i
20 ν 1 Commodity i Imports Coefficient/Output
i
21 ν 2 Commodity i Imports Coefficient/Imports relative Prices
i
22 ν 3 Commodity i Imports Coefficient/Lagged Commodity Imports
23 α dt Direct Tax Estimate Constant Term
24 σ Direct Tax Coefficient of Per-Capita Income
25 α cust Constant Term for Customs Revenue Estimate
26 τ Coefficient of Custom Revenue-Commodity imports
27 α vat Constant Term of VAT Revenue Estimates
28 π vat Coefficient of VAT Revenue/Per-Capita Consumption
29 α ri Constant Term of Revenue from Investment Abroad
30 η Investment Abroad Coefficient
31 α md Money Demand Constant Term Estimates
32 ϴ 1 Money Demand Coefficient/ National Income
33 ϴ 2 Coefficient of Money Demand Related to Real Interest Rate
34 ϴ 3 Money Demand Coefficient Estimates in Relation To Lagged Stock of Money
35 α gov Constant Term of Government Spending/Inflation Estimates
36 s Coefficient of Impact of Government Expenditure on Inflation
37 α vm Constant term of Velocity of Money/Inflation
38 z Inflation Coefficient of Velocity of Money
39 α mp Constant Term Import Prices on Inflation
40 q Inflation Coefficient of Import Prices
41 α mk Constant term of imported capital goods price on inflation
42 q 1 Inflation impact of imported capital goods prices
43 α mr Constant term of imported Intermediate goods price on inflation

44 q 2 Inflation impact of imported intermediate goods prices
45 α mc Constant term of imported consumption goods price on inflation
46 q 3 Inflation impact of imported consumption goods prices

3.3 The Model’s Policy Variables and Exogenous Parameters

The following is a set of policy variables and exogenous parameters, which would be used as
instruments by decision makers, to introduce different economic and fiscal policy alternatives.

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