An Estimated New Keynesian Model for Israel

We formulate and estimate a small New Keynesian model for the Israeli economy. Our goal is to construct a small but still realistic model that can be used to support the inflation targeting process. The model contains three structural equations: An open economy Phillips curve for CPI inflation (excluding the housing component), an aggregate demand curve for the output gap and an interest parity condition for the nominal exchange rate. The model is closed with an interest rate reaction function (Taylor-type rule) and an ad hoc equation for the housing component of the CPI, which is dominated by exchange rate changes. In the specification of the model we had to pay special attention to the crucial role of the exchange rate in the transmission of monetary policy in Israel, which has a direct effect on almost 60 percent of the CPI. The model is estimated by the GMM method, using quarterly data for the period 1992:I to 2005:IV. In the estimation of the structural equations we tried to remain as close as possible to the theoretical formulation by restricting the dynamics to one lag at most. We use the model to characterize an "optimal" simple interest rate rule. We find that the monetary authority should respond to an hybrid backward-forward looking rate of inflation and does not benefit from direct reaction to exchange rate measures.

A remotely augmented vehicle approach to flight testing RPV control systems

A remotely augmented vehicle concept for flight testing advanced control systems was developed as an outgrowth of a remotely piloted research vehicle (RPV) program in which control laws are implemented through telemetry uplink and downlink data channels using a general purpose ground based digital computer which provides the control law computations. Some advantages of this approach are that the cost of one control system facility is spread over a number of RPV programs, and control laws can be changed quickly as required, without changing the flight hardware. The remotely augmented vehicle concept is described, and flight test results from a subscale F-15 program are discussed. Suggestions of how the concept could lead to more effective testing of RPV control system concepts, and how it is applicable to a military RPV reconnaissance mission are given

Optimum and suboptimum frequency demodulation

Optimum and suboptimum linear demodulators for telemetry communication syste

On Measuring the Welfare Cost of Business Cycles

Lucas (1987) argues that the gain from eliminating aggregate fluctuations is trivial. Following Lucas, a number of researchers have altered assumptions on preferences and found that the gain from eliminating business cycles are potentially very large. However, in these exercises little discipline is placed on preference parameters. This paper estimates the welfare cost of business cycles, allowing for potential time-non-separabilities in preferences, where discipline is placed on the choice of preference parameters by requiring that the preferences be consistent with observed fluctuations in a model of business cycles. That is, a theoretical real business cycle world is constructed and the representative agent is then placed in this world. The agent responds optimally to exogenous shocks, given the frictions in the economy. The agent's preference parameters, along with other structural parameters, are estimated using a Bayesian procedure involving Markov Chain Monte Carlo methods. Two main results emerge from the paper. First, the form for the time-non-separability estimated in this paper is very different than the forms suggested and used elsewhere in the literature. Second, the welfare cost of business cycles is close to Lucas's estimate.

On Measuring the Welfare Cost of Business Cycles

Lucas (1987) argues that the gain from eliminating aggregate fluctuations is trivial. Following Lucas, a number of researchers have altered assumptions on preferences and found that the gain from eliminating business cycles are potentially very large. However, in these exercises little discipline is placed on preference parameters. This paper estimates the welfare cost of business cycles, allowing for potential time-non-separabilities in preferences, where discipline is placed on the choice of preference parameters by requiring that the preferences be consistent with observed fluctuations in a model of business cycles. That is, a theoretical real business cycle world is constructed and the representative agent is then placed in this world. The agent responds optimally to exogenous shocks, given the frictions in the economy. The agent's preference parameters, along with other structural parameters, are estimated using a Bayesian procedure involving Markov Chain Monte Carlo methods. Two main results emerge from the paper. First, the form for the time-non-separability estimated in this paper is very different than the forms suggested and used elsewhere in the literature. Second, the welfare cost of business cycles is close to Lucas's estimate.Business Cycles, Nonseparable preferences, Welfare cost, Markov Chain Monte Carlo

Single-stage electrohydraulic servosystem for actuating on airflow valve with frequencies to 500 hertz

An airflow valve and its electrohydraulic actuation servosystem are described. The servosystem uses a high-power, single-stage servovalve to obtain a dynamic response beyond that of systems designed with conventional two-stage servovalves. The electrohydraulic servosystem is analyzed and the limitations imposed on system performance by such nonlinearities as signal saturations and power limitations are discussed. Descriptions of the mechanical design concepts and developmental considerations are included. Dynamic data, in the form of sweep-frequency test results, are presented and comparison with analytical results obtained with an analog computer model is made