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Confirm that stationarized foreign debt law of motion is incorrect in documentation #687

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rickecon opened this issue Dec 8, 2020 · 2 comments
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question theory work Involves math and/or economic theory

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@rickecon
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rickecon commented Dec 8, 2020

@jdebacker. I wanted to confirm that the partially open economy stationarized foreign debt holdings law of motion in the Foreign Debt Purchases section of the Open Economy Options chapter of the current documentation is incorrect. It is currently displayed as the following.

Screen Shot 2020-12-08 at 1 21 26 AM

However, my math shows that it should be the following.

Screen Shot 2020-12-08 at 1 22 52 AM

The only difference is that I think your g_{n,t+1} should be changed to 1 + \tilde{g}_{n,t+1}. I find that this value in the code new_borrowing_f is specified in the way I describe above and not the way that is currently shown in the documentation.

@rickecon rickecon added question theory work Involves math and/or economic theory labels Dec 8, 2020
@jdebacker
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@rickecon I agree - typos in the docs.

@rickecon
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rickecon commented Dec 8, 2020

@jdebacker . OK. I have fixed this in open PR #683.

@rickecon rickecon closed this as completed Dec 8, 2020
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