Dear all,
we've been asked on the interpretation of aLK, aCK, bLk, bCK ... in header of the RBC.xls file.
These are coefficients of calibrated linearized version of RBC model, see Romer part 4.6 (in 2nd edition) "Solving the model in the general case".
First column contains: alpha - share of capital on output in production function; rho's: AR(1) coefficients of technology shocks and government purchases, delta: rate of depreciation of physical capital.
The next are coeff. in linearized equation of consumption that depends on capital K, technology A and government purchases G, similarly for labor and capital.Equation of output (included in Eva's lecture notes) contain the equation for Y(t) that has the same set of parameters too.
Hope that helps.
Jaromir