<p>Yes the $z(t)$ column vector, as it appears in $(4)$ is written upside-down in the translation. Also the first equation in $(2)$ is translated lagged once, i.e. the translated system describes the $w(t-1)$ equation.</p>

<p>Finally there is a typo in the $\Gamma_1$ matrix, there is a void 6th column that should be ignored, and $\theta$ should be in the 4th column not in the 5th (because it multiplies $u(t-1)$.</p>

CC BY-SA 4.0
2018-05-23T14:31:48.857Z
+1 Alecos, thanks for the help. By the way, in this paper, I don't understand how the author proposes to deal with the term $E_t W(t+2)$ (or $E_{t-1}W(t+1)$ when translated lagged once). In page 3, he suggests a solution, but I don't get the english. Why won't he just add $E_t W(t+2)$ to $y(t)$ as he did with $E_t W(t+1)$?
An old man in the sea.
CC BY-SA 4.0
2018-05-23T14:33:00.433Z
Also, I think the C vector, should also have its 1st component multiplied by -1, since u_n and u(t) show up with different signs.
An old man in the sea.
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2018-05-23T19:05:48.403Z
You are right for the -1.
Alecos Papadopoulos
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2018-05-23T13:46:28.947Z
2018-05-23T13:46:28.947Z
Alecos Papadopoulos
<p>Here's the <a href="http://sims.princeton.edu/yftp/gensys/LINRE3A.pdf" rel="nofollow noreferrer">Sims(2002) paper</a>. It's equal to the published version.</p>

<p>The author gives the following example: </p>

<p><a href="https://i.sstatic.net/vBXuc.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/vBXuc.png" alt="enter image description here"></a></p>

<p>And tries to write it in the matrix notation of (1) in the paper.</p>

<p>However, his solution - in (4) - puts $\epsilon (t)$ in the first equation of (2) instead of $\nu (t-1)$, and $\nu (t-1)$ instead of $\epsilon (t)$. Is this correct, and why?</p>

<p>Also, when I try to write the the first equation of (2) the time notation doesn't match. The other two equations in (2) do match.</p>

<p>Any help would be appreciated.</p>

<macroeconomics><rational-expectations>
Is there a typo in Sims(2002) paper on solving linear expectations model?
An old man in the sea.
# Is there a typo in Sims(2002) paper on solving linear expectations model?

(Asked by: username_0 on 2018-05-23)

Here's the [Sims(2002) paper](http://sims.princeton.edu/yftp/gensys/LINRE3A.pdf). It's equal to the published version.

The author gives the following example:

[![enter image description here](https://i.sstatic.net/vBXuc.png)](https://i.sstatic.net/vBXuc.png)

And tries to write it in the matrix notation of (1) in the paper.

However, his solution - in (4) - puts $\epsilon (t)$ in the first equation of (2) instead of $\nu (t-1)$, and $\nu (t-1)$ instead of $\epsilon (t)$. Is this correct, and why?

Also, when I try to write the the first equation of (2) the time notation doesn't match. The other two equations in (2) do match.

Any help would be appreciated.

**Tags:** macroeconomics, rational-expectations


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## 1 answers

### Answer by username_1 on 2018-05-23. Score: 4 | Accepted answer

Yes the $z(t)$ column vector, as it appears in $(4)$ is written upside-down in the translation. Also the first equation in $(2)$ is translated lagged once, i.e. the translated system describes the $w(t-1)$ equation.

Finally there is a typo in the $\Gamma\_1$ matrix, there is a void 6th column that should be ignored, and $\theta$ should be in the 4th column not in the 5th (because it multiplies $u(t-1)$.

> **Comments:**
> **username_0**: +1 Alecos, thanks for the help. By the way, in this paper, I don't understand how the author proposes to deal with the term $E_t W(t+2)$ (or $E_{t-1}W(t+1)$ when translated lagged once). In page 3, he suggests a solution, but I don't get the english. Why won't he just add $E_t W(t+2)$ to $y(t)$ as he did with $E_t W(t+1)$?  
> **username_0**: Also, I think the C vector, should also have its 1st component multiplied by -1, since u_n and u(t) show up with different signs.  
> **username_1**: You are right for the -1.  

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