function f = m1(unknown) 
global alpha lambda delta deltax sigma eta alphax lambdax n epsilon wx w; % List of parameters and already computed variables
cx = unknown(1);
vat = unknown(2);
vatx = unknown(3);
f(1) = (((((1-delta)/(alpha*lambda*(deltax-1)))*((1-n)^((sigma+eta)/eta))*((wx/(1+vatx))^(1/eta))...
    *(1-(1-alphax*lambdax)*deltax))-(1/(alphax*lambdax*deltax))*(n^((sigma+eta)/eta))*((w/(1+vat))^(1/eta))*...
    (((n/(1-n))*(((1+vatx)/(1+vat))^(1/sigma)))^(-sigma/eta))*(1-(1-alpha*lambda)*delta)+(1/(alphax*lambdax...
    *deltax))*(1-lambda)*(((n/(1-n))*(((1+vatx)/(1+vat))^(1/sigma)))^(-sigma/eta)))/...
    ((((1-delta)/(alpha*lambda*(deltax-1)))*(1-alphax*lambdax))+((1-delta)/(alpha*lambda*(deltax-1)))*alpha*lambda...
    ((n/(1-n))*(((1+vatx)/(1+vat))^(1/sigma)))-((alphax*lambdax)/(alphax*lambdax*deltax))+((1-delta)/(alpha*lambda*(deltax-1)))*...
    ((alpha*lambda)/(1-delta))*((n/(1-n))*(((1+vatx)/(1+vat))^(1/sigma))+1)))^(eta/(sigma+eta)); % Relationship between cx, vat and vatx obtained from labor markets and goods markets equilibria
f(2) = vatx*((1+vax)^(1/eta))-(deltax-payrollx*wx)*((1-n)^((sigma+eta)/eta))*(wx^(1/eta))*cx^(-(sigma+eta)/eta); % Relationship between cx, vat and vatx obtained from Home government budget constraint
f(3) = vat*(((1+vatx)/(1+vat))^(1/sigma))*(n/(1-n))*cx-(delta-payroll*w)*(n^((sigma+eta)/eta))*((w/(1+vat))^(1/eta))*...
    ((n/(1-n))^(-sigma/eta))*(((1+vatx)/(1+vat))^(-1/eta))*(cx^(-sigma/eta)) ; % Relationship between cx, vat and vatx obtained from Foreign government budget constraint