| Symbol | Definition |
|---|
| $g_i$ | Total output from sector $i$ |
| $\hat{Y}$ | Real GDP growth rate |
| $p_{d,k}$ | Domestic price for product $k$ as an index relative to the initial year |
| $p_{w,k}$ | World price index for product $k$ |
| $p_{x,k}$ | Export-weighted average of world and domestic prices for product $k$ |
| $\pi_{b,k}$ | Basic price inflation rate for product $k$ |
| $\pi_{d,k}$ | Domestic price inflation rate for product $k$ |
| $\pi_F$ | Inflation rate for domestic final demand |
| $\pi_\text{GDP}$ | Inflation rate for the GDP price level |
| $W_i$ | Nominal wage bill in sector $i$ |
| $\hat{L}$ | Growth rate of employment |
| $\hat{w}$ | Growth rate of the nominal wage |
| $\hat{\lambda}$ | Growth rate of labor productivity |
| $\omega_i$ | Wage share in sector $i$ |
| $\gamma_i$ | Rate of net investment demand in sector $i$ |
| $\gamma_{i0}$ | The autonomous (smoothed) component of the rate of net investment demand in sector $i$ |
| $i_b$ | Central bank interest rate |
| $i_{b0}$ | Central bank interest rate when GDP growth and inflation are at their targets |
| $\Pi_i$ | Gross profits in sector $i$ |
| $r_i$ | Gross rate of profit in sector $i$ |
| $\gamma^\text{wage}$ | Growth rate of the total wage bill |
| $\gamma^\text{world}_\text{smooth}$ | Smoothed growth rate of world GDP (also termed gross world product, GWP) |
| $f_k$ | Current level of imports of good $k$ as a fraction of domestic demand |
| Symbol | Definition |
|---|
| $\underline{w}_u$ | In the linear goal program, the category weight penalizing low utilization |
| $\underline{w}_F$ | In the linear goal program, the category weight penalizing departure from normal final demand |
| $\underline{w}_X$ | In the linear goal program, the category weight penalizing departure from normal exports |
| $\underline{w}_M$ | In the linear goal program, the category weight penalizing imports over domestic supply |
| $\underline{\sigma}^u_i$ | In the linear goal program, sector weight for utilization for sector $i$ |
| $\underline{\sigma}^X_k$ | In the linear goal program, product weight for exports for product $k$ |
| $\underline{\sigma}^F_k$ | In the linear goal program, product weight for final consumption demand for product $k$ |
| $\underline{\varphi}_u$ | For utilization sector weights, weight of value share vs. constant share |
| $\underline{\varphi}_F$ | For final demand sector weights, weight of value share vs. constant share |
| $\underline{\varphi}_X$ | For export sector weights, weight of value share vs. constant share |
| $\underline{S}_{ik}$ | Sector $i$'s share of domestic production of product $k$ |
| $\underline{D}^\text{init}_{ki}$ | Initial value for intermediate demand for product $k$ per unit of output from sector $i$ |
| $\underline{d}_k$ | Equal to $\underline{d}_k = 1$ if the country does not produce product $k$ and $\underline{d}_k = 0$ if it does produce it |
| $\underline{\varepsilon}_i$ | Initial energy cost share for sector $i$ if energy excluded, otherwise zero |
| $\underline{e}$ | Exchange rate |
| $\underline{\pi}_{w,k}$ | Inflation rate for the world price of product $k$ |
| $\underline{\mu}_i$ | Profit margin in sector $i$ |
| $\underline{\alpha}^\text{KV}$, $\underline{\alpha}^\text{KV}_i$ | Kaldor-Verdoorn law coefficient, for the whole economy or by sector $i$ |
| $\underline{\beta}^\text{KV}$, $\underline{\beta}^\text{KV}_i$ | Kaldor-Verdoorn law intercept, for the whole economy or by sector $i$ |
| $\underline{L}_{i0}$ | Initial employment level for sector $i$, if labor productivity is specified by sector |
| $\underline{h}$ | Inflation pass-through to the nominal wage (wage indexation parameter) |
| $\underline{k}$ | Response of the real wage to labor supply constraints |
| $\underline{\hat{N}}$ | Growth rate of the working-age population |
| $\underline{\chi}^\pm_k$ | Allocation coefficients for positive $(+)$ and negative $(-)$ margins for product $k$ |
| $\underline{i}^\text{init}_{b0}$ | Initial value for $i_{b0}$ |
| $\underline{i}^\text{min}_{b0}, \underline{i}^\text{max}_{b0}$ | Minimum and maximum values for $i_{b0}$ |
| $\underline{b}_\text{xr}$ | Sensitivity of $i_{b0}$ to changes in the exchange rate |
| $\underline{T}_\text{xr}$ | Adaptation time for $i_{b0}$ to adjust to the target |
| $\underline{\rho}_Y$ | Taylor coefficient on the GDP growth rate |
| $\underline{\rho}_\pi$ | Taylor coefficient on the inflation rate |
| $\hat{\underline{Y}}^*_\text{min}, \hat{\underline{Y}}^*_\text{max}$ | Minimum and maximum target growth rates for the Taylor rule |
| $\underline{\pi}^*$ | Taylor rule target inflation rate |
| $\underline{\pi}_d^\text{init}$ | Initial domestic price inflation rate |
| $\underline{\gamma}_0$ | Initial autonomous investment rate in the investment function |
| $\underline{\xi}$ | Rate of adjustment of autonomous demand to realized growth rate |
| $\underline{\alpha}_\text{util}$ | Response of induced investment to capacity utilization (utilization investment sensitivity) |
| $\underline{\alpha}_\text{profit}$ | Response of induced investment to profitability (profit rate investment sensitivity) |
| $\underline{\alpha}_\text{bank}$ | Response of induced investment to borrowing costs (interest rate investment sensitivity) |
| $\underline{\alpha}_\text{netx}$ | Response of induced investment to the ratio of net exports to GDP (due to perceived lender's risk) |
| $\underline{r}^*$ | Target rate of gross profit (in the investment function) |
| $\underline{\delta}_i$ | Depreciation rate for sector $i$ |
| $\underline{v}_i$ | Capital-output ratio in sector $i$ |
| $\underline{\theta}_k$ | Share of product $k$ in the total supply of investment goods |
| $\underline{\gamma}^\text{world}$ | Growth rate of world GDP (also termed gross world product, GWP) |
| $\underline{\eta}^\text{exp}_k$ | Elasticity of normal export demand for product $k$ with respect to a change in GWP |
| $\underline{\eta}^\text{wage}_k$ | Elasticity of normal final demand for product $k$ with respect to a change in the wage bill |
| $\underline{\phi}^\text{exp}_k, \underline{\phi}^\text{imp}_k$ | Elasticities of export and import demand with respect to relative price changes |