%
% ch7ex1F is a matlab function that defines the 
% GMM moment conditions 
%

function [q] = ch7ex1F(x,lnz1,lnz2,gc1,gc2,ky1,ky2,n1,n2,cy1,cy2,omega,thetabar,beta,delta,sigma)

phi1   = x(1);
sigma1 = x(2);
alpha1 = x(3);
psi1   = abs(x(4));


% ----- define moments----- %

m1 = lnz2 - phi1*lnz1;

m2 = (lnz2 - phi1*lnz1).^2 - sigma1^2;

m3 = 1 - beta*(thetabar^-1)*(gc2.^-1).*( alpha1* (ky2.^-1) * thetabar^(1-alpha1) + (1-delta) )  ;

m4 = -psi1*((1-n1).^-sigma).*n1 + (1-alpha1)*(cy1.^-1)*thetabar^(-alpha1) ; 

% ----- define the squared moments to be minimzed ----- %

g = [mean(m1);mean(m2);mean(m3);mean(m4)] ;

q = g'*omega*g;