The Burnside/Eichenbaum/Rebelo Model
T = time endowment,, Wt = effort, f = hours worked per shift, ξ = fixed cost of work (in terms of hours of foregone leisure).
Cobb-Douglas Production Function
Zt = Technology, Nt = fraction of agents who are workers (the number of agents is normalized to unity), Kt = beginning of period capital stock.
Zt = γαt At
ln(At) = (1 - ρa)ln(A) + ρa ln(At-1) + εt
Aggregate Resource Constraint
Xt = government consumption
ln(Gt) = (1 - ρg)ln(G) + ρg ln(Gt-1) + μt