%adhoc4r.m. 9/17/96 %ad hoc IS-LM-PC model with feedback %Calculation of saddlepoint solution. B-K/Farmer method a1=.5; a2=1; b1=0.1; c1=1; c2=0.2; d1=0.1; d2=-0.1; d3=0.1; d4=0.2; j0=zeros(5); j0(1,1)=2;j0(1,2)=-a1;j0(1.,5)=-1; j0(2,1)=b1;j0(2,2)=1;j0(2,3)=b1; j0(3,1)=-1;j0(3,2)=-c1;j0(3,3)=c2;j0(3,4)=1; j0(4,1)=d1;j0(4,2)=d2;j0(4,3)=d3;j0(4,4)=d4; j0(5,1)=1; j1=eye(5); j1(2,1)=b1;j1(2,2)=0; j1(3,3)=0; j=inv(j0)*j1; [Q D]=eig(j) inq=inv(Q); inq11=inq(1:3,1:3); inq12=inq(1:3,4:5); piexzeta=-inv(inq11)*inq12; d=[d1 d2 d3 d4]; e=[1 0 0 0]; DD=[d;e]; A=[piexzeta*DD;d]