1// Based on Luca Marchiori/Olivier Pierrard(2012) LOLA 2.0: Luxembourg OverLapping generation model for policy Analysis 2// Involves a call to solve_one_boundary.m that is tested here 3 4load lola_data.mat 5 6% ==================================================== 7% declarations var -- varexo -- para 8% ==================================================== 9 10@#define nbr_work_generations=9 11@#define nbr_early_generations=2 12@#define nbr_generations=16 13 14parameters 15length_period age_early; 16 17length_period=5; 18age_early=55; 19 20@#define wt=[1] 21 22@#define wg=0:nbr_work_generations-1 23@#define ag=0:nbr_generations-1 24@#define fwg=0:nbr_work_generations-nbr_early_generations-1 25@#define nbwg=1:nbr_work_generations-1 26@#define nbg=1:nbr_generations-1 27@#define rg=nbr_work_generations:nbr_generations-1 28@#define erg=nbr_work_generations-nbr_early_generations:nbr_work_generations-1 29@#define endg=[nbr_generations-1] 30@#define endw=[nbr_work_generations-1] 31 32@#for i in wg 33var 34n@{i} u@{i} Omega@{i} w@{i} dWHN@{i} dWFN@{i} 35n@{i}_f u@{i}_f Omega@{i}_f w@{i}_f dWFN@{i}_f 36i@{i} lambda@{i} i@{i}_f lambda@{i}_f eta@{i}; 37parameters 38Du@{i} Dn@{i} h@{i} h@{i}_f chi@{i} eta@{i}b; 39varexo 40eps_eta@{i}; 41@#endfor 42 43@#for i in ag 44var 45c@{i} s@{i} P@{i} P@{i}_f; 46varexo 47beta@{i} beta@{i}_f PD@{i}; 48@#endfor 49 50@#for i in erg 51var 52WE@{i} De_@{i}; 53parameters 54De_@{i}b; 55varexo 56eps_De_@{i}; 57@#endfor 58 59var 60wb wb_f 61Omega Omega_f Omega_hf 62V M qq p 63N N_f 64Q RR H K Y gdp nx FH pi 65ct st wshare rr 66gamma mc phii D DH DF X bs bsY P00_f 67 68rhou rhoe rhol tauw tauc tauf tauk g 69TFP gh rrb 70theta tau1 om1 om2 om2s Ds phijs 71 72DepRatio DepRatio_n DepRatio_d ZARA Ptot Ptot_f sleep du de dl inA inB in 73NBR NBRY NBR2 tauw2 tauf2 tauc2 74PensCorr_L PensCorr_F; 75 76parameters 77rho phi delta alpha beta ann 78fc nu aa 79 80rhoub rhoeb rholb tauwb taucb taufb taukb gb 81TFPb ghb rrbb 82thetab tau1b om1b om2b om2sb Dsb phijsb 83 84NBRYb bsY_iss; 85 86varexo 87P00 P00_foP00 88 89eps_rhol eps_tauw eps_tauf eps_tauc eps_tauk 90eps_rhoe eps_rhou eps_TFP eps_gh eps_theta eps_g 91eps_Ds eps_phijs eps_PensCorr_L eps_PensCorr_F; 92 93 94% ============================================================ 95% initialization 96% ============================================================ 97 98@#for i in wg 99set_param_value('Du@{i}',Du@{i}); 100set_param_value('Dn@{i}',Dn@{i}); 101set_param_value('h@{i}',h@{i}); 102set_param_value('h@{i}_f',h@{i}_f); 103set_param_value('chi@{i}',chi@{i}); 104set_param_value('eta@{i}b',eta@{i}b); 105@#endfor 106 107@#for i in erg 108set_param_value('De_@{i}b',De_@{i}b); 109@#endfor 110 111set_param_value('rho',rho); 112set_param_value('phi',phi); 113set_param_value('delta',delta); 114set_param_value('alpha',alpha); 115set_param_value('beta',beta); 116set_param_value('ann',ann); 117set_param_value('fc',fc); 118set_param_value('nu',nu); 119set_param_value('aa',aa); 120 121set_param_value('rhoub',rhoub); 122set_param_value('rhoeb',rhoeb); 123set_param_value('rholb',rholb); 124set_param_value('tauwb',tauwb); 125set_param_value('taucb',taucb); 126set_param_value('taufb',taufb); 127set_param_value('taukb',taukb); 128set_param_value('gb',gb); 129 130set_param_value('TFPb',TFPb); 131set_param_value('ghb',ghb); 132set_param_value('rrbb',rrbb); 133 134set_param_value('thetab',thetab); 135set_param_value('tau1b',tau1b); 136set_param_value('om1b',om1b); 137set_param_value('om2b',om2b); 138set_param_value('om2sb',om2sb); 139set_param_value('Dsb',Dsb); 140set_param_value('phijsb',phijsb); 141 142set_param_value('bsY_iss',bsY_iss); 143 144NBRYb=NBR_iss/(phii_iss*gdp_iss); 145 146 147% ======================================================= 148model(block); 149% ====================================================== 150 151% Labor Market Variables in the home country 152% ------------------------------------------ 153 154@#for i in fwg 1550=lambda@{i}; 156@#endfor 157 158@#for i in wg 1591=n@{i}+u@{i}+i@{i}; 160@#endfor 161 162i0=lambda0; 163@#for i in nbwg 164i@{i}=lambda@{i-1}(-1)+lambda@{i}*(1-lambda@{i-1}(-1)); 165@#endfor 166 167P0=beta0*P00+PD0; 168@#for i in nbg 169P@{i}=beta@{i}*P@{i-1}(-1)+PD@{i}; 170@#endfor 171 172Omega0=P0; 173@#for i in nbwg 174Omega@{i}=(1-lambda@{i})*( 1-lambda@{i-1}(-1)-(1-chi@{i})*n@{i-1}(-1))*P@{i}; 175@#endfor 176 177n0=p; 178@#for i in nbwg 179n@{i}=(1-lambda@{i})*((1-p)*(1-chi@{i})*n@{i-1}(-1)+p*(1-lambda@{i-1}(-1))); 180@#endfor 181 182N= 183@#for i in wg 184+n@{i}*P@{i} 185@#endfor 186; 187 188% Labor Market Variables in the foreign country 189% --------------------------------------------- 190 191@#for i in wg 1921=n@{i}_f+u@{i}_f+i@{i}_f; 193@#endfor 194 195i0_f=lambda0_f; 196@#for i in nbwg 197i@{i}_f=lambda@{i-1}_f(-1)+lambda@{i}_f*(1-lambda@{i-1}_f(-1)); 198@#endfor 199 200% ----------- reproduction cross-border -------------------- 201 202P00_f=P00_foP00*P00; 203 204P0_f=beta0_f*P00_f; 205@#for i in nbg 206P@{i}_f=beta@{i}_f*P@{i-1}_f(-1); 207@#endfor 208 209Omega0_f=P0_f; 210@#for i in nbwg 211Omega@{i}_f=(1-lambda@{i}_f)*(1-lambda@{i-1}_f(-1)-(1-chi@{i})*n@{i-1}_f(-1))*P@{i}_f; 212@#endfor 213 214n0_f=p; 215@#for i in nbwg 216n@{i}_f=(1-lambda@{i}_f)*((1-p)*(1-chi@{i})*n@{i-1}_f(-1)+p*(1-lambda@{i-1}_f(-1))); 217@#endfor 218 219N_f= 220@#for i in wg 221+n@{i}_f*P@{i}_f 222@#endfor 223; 224 225% Matching 226% ---------- 227 228Omega= 229@#for i in wg 230+Omega@{i} 231@#endfor 232; 233 234Omega_f= 235@#for i in wg 236+Omega@{i}_f 237@#endfor 238; 239 240Omega_hf=Omega+Omega_f; 241 242M=V*Omega_hf/(V^nu+Omega_hf^nu)^(1/nu); 243 244qq=M/V; 245p=M/Omega_hf; 246 247% Flow Budget Constraints (no bequests) 248% -------------------------------------- 249 250rhou*w0*u0+ (1-tauw)*w0*n0 = (1+tauc)*c0+s0; 251@#for i in nbwg 252(1+rr*(1-tauk))/(beta@{i})^ann*s@{i-1}(-1)/(1+gh)+rhou*w@{i}*u@{i}+rhoe*w@{i}*i@{i}+(1-tauw)*w@{i}*n@{i}=(1+tauc)*c@{i}+s@{i}; 253@#endfor 254@#for i in rg 255(1+rr*(1-tauk))/(beta@{i})^ann*s@{i-1}(-1)/(1+gh)+rhol*wb=(1+tauc)*c@{i}+s@{i}; 256@#endfor 257@#for i in endg 258s@{i}=0; 259@#endfor 260 261wb= 262@#for i in wg 263+w@{i}/@{nbr_work_generations} 264@#endfor 265; 266 267% Euler Conditions 268% ------------------ 269 270@#for i in nbg 2711/(1+tauc)/c@{i-1}=beta*(1+rr(+1)*(1-tauk(+1)))/(1+tauc(+1))/c@{i}(+1)*(beta@{i})^(1-ann)/(1+gh); 272@#endfor 273 274 275% Optimal Participation Rates (Early Retirement) 276% ---------------------------------------------- 277 278@#for i in erg 279WE@{i} = 0; 280@#endfor 281 282@#for i in erg 283@#if i in endw 284WE@{i} = ((De_@{i}b*i@{i}^(phi-1))+Du@{i}+(rhoe-rhou)*w@{i}/(1+tauc)/c@{i})*(1-i@{i})-((1-tauw-rhou)*w@{i}/(1+tauc)/c@{i}-(Dn@{i}-Du@{i}))*n@{i}; 285@#else 286WE@{i} = ((De_@{i}b*i@{i}^(phi-1))+Du@{i}+(rhoe-rhou)*w@{i}/(1+tauc)/c@{i})*(1-i@{i})-((1-tauw-rhou)*w@{i}/(1+tauc)/c@{i}-(Dn@{i}-Du@{i}))*n@{i}+ beta*beta@{i+1}*WE@{i+1}; 287@#endif 288@#endfor 289 290% Household Surplus 291% ------------------- 292 293@#for i in wg 294@#if i in endw 295dWHN@{i} = w@{i}*(1-tauw-rhou)/(1+tauc)-(Dn@{i}-Du@{i})*c@{i}; 296@#else 297dWHN@{i} = w@{i}*(1-tauw-rhou)/(1+tauc)-(Dn@{i}-Du@{i})*c@{i} + beta*beta@{i+1}*c@{i}/c@{i+1}(+1)*dWHN@{i+1}(+1)*(1-p(+1))*(1-chi@{i+1})*(1-lambda@{i+1}(+1)); 298@#endif 299@#endfor 300 301% Foreign household 302% ------------------------ 303% participation and wages 304% ........................ 305 306@#for i in wg 307lambda@{i}=lambda@{i}_f; 308w@{i}_f=w@{i}; 309@#endfor 310 311wb_f= 312@#for i in wg 313+w@{i}_f/@{nbr_work_generations} 314@#endfor 315; 316 317% Firm's Behavior 318% ------------------- 319 320H= 321@#for i in wg 322+h@{i}*n@{i}*P@{i}+h@{i}_f*n@{i}_f*P@{i}_f 323@#endfor 324; 325 326wshare=(1+tauf)*( 327@#for i in wg 328+w@{i}*n@{i}*P@{i}+w@{i}_f*n@{i}_f*P@{i}_f 329@#endfor 330)/(phii*gdp); 331 332Y=TFP*H^(1-alpha)*(K)^alpha; 333gdp= TFP*H^(1-alpha)*(K)^alpha-aa*V/phii-fc/phii; 334pi = phii*gdp - wshare*phii*gdp - (rr+delta)*K(-1)/(1+gh); 335(rr(+1)+delta)/(1+rr(+1)*(1-tauk(+1))) = mc*TFP*alpha*(H/(K))^(1-alpha); 336FH=TFP*(1-alpha)*((K)/H)^alpha; 337 338RR=1+rr*(1-tauk); 339rr=rrb+tau1*(exp(bsY_iss-bsY)-1); 340 341% Firm's Surplus 342% --------------------- 343 344@#for i in wg 345@#if i in endw 346dWFN@{i} = h@{i}*mc*FH-(1+tauf)*w@{i}; 347dWFN@{i}_f = h@{i}_f*mc*FH-(1+tauf)*w@{i}_f; 348@#else 349dWFN@{i} = h@{i}*mc*FH-(1+tauf)*w@{i} + beta@{i+1}/RR(+1)*dWFN@{i+1}(+1)*(1-chi@{i+1})*(1-lambda@{i+1}(+1))*(1+gh); 350dWFN@{i}_f = h@{i}_f*mc*FH-(1+tauf)*w@{i}_f + beta@{i+1}_f/RR(+1)*dWFN@{i+1}_f(+1)*(1-chi@{i+1})*(1-lambda@{i+1}_f(+1))*(1+gh); 351@#endif 352@#endfor 353 354% Free Entry Condition 355% --------------------- 356 357aa=qq/Omega_hf*( 358@#for i in wg 359+Omega@{i}*dWFN@{i}+Omega@{i}_f*dWFN@{i}_f 360@#endfor 361); 362 363% Wage Determination (Rent Sharing) 364% ----------------------------------- 365 366@#for i in wg 367(1-eta@{i})*dWHN@{i} = eta@{i}*((1-tauw)/(1+tauf)/(1+tauc))*dWFN@{i}; 368@#endfor 369 370% Equilibrium Conditions 371% ---------------------- 372 373ct= 374@#for i in ag 375+c@{i}*P@{i} 376@#endfor 377; 378 379st= 380@#for i in ag 381+s@{i}*P@{i} 382@#endfor 383; 384 385% Non-Arbitrage condition (physical capital-shares) 386% ......................... 387 388Q(+1)+pi(+1)=(1+rr(+1))*Q/(1+gh); 389 390% New Open Economy Macroeconomics (NOEM) 391% --------------------------------------- 392 393phii=mc/theta; 394D= ct + K-(1-delta)*K(-1)/(1+gh) + g*gdp*phii + fc+aa*V; 395DH=(1/om1*phii)^(1/(rho-1))*D; 396X=(1/om2s*phii/gamma)^(1/(rho-1))*Ds; 397DF=(1/om2*gamma*phijs)^(1/(rho-1))*D; 398nx=phii*X-phijs*gamma*DF; 399bsY=bs/(phii*gdp); 400Y=DH+X; 401phii*gdp=ct + K-(1-delta)*K(-1)/(1+gh) + g*gdp*phii+nx; 402 403st=K+Q +bs ; 404 405% Policies 406% ---------- 407 408rhou=rhoub*eps_rhou; 409rhoe=rhoeb*eps_rhoe; 410rhol=rholb*eps_rhol; 411g=gb*eps_g; 412 413@#for i in erg 414De_@{i}=De_@{i}b*eps_De_@{i}; 415@#endfor 416 417TFP=TFPb*eps_TFP; 418gh=ghb*eps_gh; 419 420@#for i in wg 421eta@{i}=eta@{i}b*eps_eta@{i}; 422@#endfor 423 424rrb=rrbb; 425 426theta=thetab*eps_theta; 427tau1=tau1b; 428om1=om1b; 429om2=om2b; 430om2s=om2sb; 431Ds=Dsb*eps_Ds; 432phijs=phijsb*eps_phijs; 433 434 435% ----------- RefDR scenario 436 437DepRatio_n= 438@#for i in rg 439+P@{i} 440@#endfor 441; 442DepRatio_d= 443@#for i in wg 444+P@{i} 445@#endfor 446; 447 448DepRatio=DepRatio_n/DepRatio_d; 449 450ZARA=age_early+length_period*( 451@#for i in erg 452+1-i@{i} 453@#endfor 454); 455 456% ----------- WGEM 457 458Ptot= 459@#for i in ag 460+P@{i} 461@#endfor 462; 463Ptot_f= 464@#for i in ag 465+P@{i}_f 466@#endfor 467; 468 469sleep=(1+rr)*( 470@#for i in nbg 471+1/beta@{i}*(1-1/beta@{i}^(ann-1))*s@{i-1}(-1)*P@{i} 472@#endfor 473)/(1+gh); 474 475du=rhou*( 476@#for i in wg 477+w@{i}*u@{i}*P@{i} 478@#endfor 479); 480 481de=rhoe*( 482@#for i in erg 483+w@{i}*i@{i}*P@{i}+w@{i}_f*i@{i}_f*P@{i}_f 484@#endfor 485); 486 487dl= 488@#for i in rg 489+rhol*wb*PensCorr_L*P@{i}+rhol*wb_f*(N_f/(N+N_f))*PensCorr_F*P@{i}_f 490@#endfor 491; 492 493PensCorr_L=eps_PensCorr_L; 494PensCorr_F=eps_PensCorr_F; 495 496inA=(tauw+tauf)*( 497@#for i in wg 498+n@{i}*w@{i}*P@{i}+n@{i}_f*w@{i}_f*P@{i}_f 499@#endfor 500); 501 502inB=tauk*rr*( 503@#for i in nbg 504+1/beta@{i}^ann*s@{i-1}(-1)*P@{i} 505@#endfor 506)/(1+gh); 507 508in=tauc*ct+inA+inB+sleep; 509NBR=g*phii*gdp+(du+de+dl)-(in); 510NBRY=NBR/(phii*gdp); 511 512% ----------- WGEM Adjustment variable --------------- 513 514tauf2=tauf; 515tauw2=tauw; 516NBR2=NBR; 517tauc2=tauc; 518tauf=taufb*eps_tauf; 519%----- WGEM: adjustment through tauc 520tauc=taucb*eps_tauc; 521%----- WGEM: adjustment through tauk 522tauk=taukb*eps_tauk; 523%----- WGEM: adjustment through tauw 524tauw=tauwb*eps_tauw; 525 526end; 527 528%================================== 529initval; 530%================================== 531 532@#for i in wg 533n@{i}=n@{i}_iss; 534n@{i}_f=n@{i}_f_iss; 535u@{i}=u@{i}_iss; 536u@{i}_f=u@{i}_f_iss; 537Omega@{i}=Omega@{i}_iss; 538Omega@{i}_f=Omega@{i}_f_iss; 539w@{i}=w@{i}_iss; 540w@{i}_f=w@{i}_f_iss; 541dWHN@{i}=dWHN@{i}_iss; 542dWFN@{i}=dWFN@{i}_iss; 543dWFN@{i}_f=dWFN@{i}_f_iss; 544eps_eta@{i}=eps_eta@{i}_iss; 545eta@{i}=eta@{i}b*eps_eta@{i}; 546@#endfor 547 548@#for i in erg 549i@{i}=i@{i}_iss; 550lambda@{i}=lambda@{i}_iss; 551i@{i}_f=i@{i}_f_iss; 552lambda@{i}_f=lambda@{i}_f_iss; 553WE@{i}=0; 554eps_De_@{i}=eps_De_@{i}_iss; 555De_@{i}=De_@{i}b*eps_De_@{i}_iss; 556@#endfor 557 558@#for i in fwg 559i@{i}=0; 560lambda@{i}=0; 561i@{i}_f=0; 562lambda@{i}_f=0; 563@#endfor 564 565@#for i in ag 566@#if i in endg 567s@{i}=0; 568@#else 569s@{i}=s@{i}_iss; 570@#endif 571@#endfor 572 573@#for i in ag 574beta@{i}=beta@{i}_iss; 575beta@{i}_f=beta@{i}_f_iss; 576PD@{i}=PD@{i}_iss; 577c@{i}=c@{i}_iss; 578P@{i}=P@{i}_iss; 579P@{i}_f=P@{i}_f_iss; 580@#endfor 581 582wb = wb_iss; 583wb_f = wb_f_iss; 584Omega = Omega_iss; 585Omega_f = Omega_f_iss; 586Omega_hf = Omega_hf_iss; 587V = V_iss ; 588M = M_iss ; 589qq = qq_iss ; 590p = p_iss ; 591N = N_iss ; 592N_f = N_f_iss ; 593Q = Q_iss ; 594RR = RR_iss ; 595H = H_iss ; 596K = K_iss ; 597Y = Y_iss ; 598gdp = gdp_iss ; 599nx = nx_iss ; 600FH = FH_iss ; 601pi = pi_iss ; 602ct = ct_iss ; 603st = st_iss ; 604wshare = wshare_iss ; 605rr = rr_iss ; 606 607gamma = gamma_iss ; 608mc = mc_iss ; 609phii = phii_iss ; 610D = D_iss ; 611DH = DH_iss ; 612DF = DF_iss ; 613X = X_iss ; 614bs = bs_iss ; 615bsY = bsY_iss ; 616P00_f = P00_f_iss; 617 618eps_rhol=eps_rhol_iss; 619eps_rhoe=eps_rhoe_iss; 620eps_rhou=eps_rhou_iss; 621rhou=rhoub*eps_rhou_iss; 622rhoe=rhoeb*eps_rhoe_iss; 623rhol=rholb*eps_rhol_iss; 624eps_tauc=eps_tauc_iss; 625eps_tauk=eps_tauk_iss; 626eps_tauw=eps_tauw_iss; 627eps_tauf=eps_tauf_iss; 628tauw=tauwb*eps_tauw; 629tauc=taucb*eps_tauc; 630tauf=taufb*eps_tauf; 631tauk=taukb*eps_tauk; 632eps_theta=eps_theta_iss; 633eps_gh=eps_gh_iss; 634eps_TFP=eps_TFP_iss; 635eps_g=eps_g_iss; 636g=gb*eps_g_iss; 637TFP=TFPb*eps_TFP_iss; 638gh=ghb*eps_gh_iss; 639theta=thetab*eps_theta_iss; 640 641rrb=rrbb; 642tau1=tau1b; 643om1=om1b; 644om2=om2b; 645om2s=om2sb; 646 647eps_Ds=1; 648eps_phijs=1; 649Ds=Dsb*eps_Ds; 650phijs=phijsb*eps_phijs; 651 652eps_PensCorr_F=eps_PensCorr_F_iss; 653eps_PensCorr_L=eps_PensCorr_L_iss; 654PensCorr_F=eps_PensCorr_F_iss; 655PensCorr_L=eps_PensCorr_L_iss; 656 657P00 = P00_iss ; 658P00_foP00 = P00_foP00_iss ; 659 660DepRatio_n= 661@#for i in rg 662+P@{i} 663@#endfor 664; 665DepRatio_d= 666@#for i in wg 667+P@{i} 668@#endfor 669; 670 671DepRatio=DepRatio_n/DepRatio_d; 672 673ZARA=age_early+length_period*( 674@#for i in erg 675+1-i@{i} 676@#endfor 677); 678 679Ptot=Ptot_iss; 680Ptot_f=Ptot_f_iss; 681sleep=sleep_iss; 682du=du_iss; 683de=de_iss; 684dl=dl_iss; 685 686inA=inA_iss;%(tauw+tauf)*( 687%@#for i in wg 688%+n@{i}*w@{i}*P@{i}+n@{i}_f*w@{i}_f*P@{i}_f 689%@#endfor 690%); 691 692inB=inB_iss;%tauk*rr*( 693%@#for i in nbg 694%+1/beta@{i}^ann*s@{i-1}*P@{i} 695%@#endfor 696%)/(1+gh); 697 698in=in_iss;%tauc*ct+inA+inB+sleep; 699NBR=NBR_iss;%g*phii*gdp+(du+de+dl)-(in); 700NBRY=NBR/(phii*gdp); 701NBR2=NBR; 702tauf2=tauf; 703tauw2=tauw; 704tauc2=tauc; 705 706end; 707 708%======================================================== 709% compute initial steady state and check eigenvalues 710%======================================================== 711 712resid; 713steady(solve_algo=3); 714check; 715 716%======================================================== 717endval; 718%======================================================== 719 720@#for i in wg 721n@{i}=n@{i}_fss; 722n@{i}_f=n@{i}_f_fss; 723u@{i}=u@{i}_fss; 724u@{i}_f=u@{i}_f_fss; 725Omega@{i}=Omega@{i}_fss; 726Omega@{i}_f=Omega@{i}_f_fss; 727w@{i}=w@{i}_fss; 728w@{i}_f=w@{i}_f_fss; 729dWHN@{i}=dWHN@{i}_fss; 730dWFN@{i}=dWFN@{i}_fss; 731dWFN@{i}_f=dWFN@{i}_f_fss; 732eps_eta@{i}=eps_eta@{i}_fss; 733eta@{i}=eta@{i}b*eps_eta@{i}; 734@#endfor 735 736@#for i in erg 737i@{i}=i@{i}_fss; 738lambda@{i}=lambda@{i}_fss; 739i@{i}_f=i@{i}_f_fss; 740lambda@{i}_f=lambda@{i}_f_fss; 741WE@{i}=0; 742eps_De_@{i}=eps_De_@{i}_fss; 743De_@{i}=De_@{i}b*eps_De_@{i}_fss; 744@#endfor 745 746@#for i in fwg 747i@{i}=0; 748lambda@{i}=0; 749i@{i}_f=0; 750lambda@{i}_f=0; 751@#endfor 752 753@#for i in ag 754@#if i in endg 755s@{i}=0; 756@#else 757s@{i}=s@{i}_fss; 758@#endif 759@#endfor 760 761@#for i in ag 762beta@{i}=beta@{i}_fss; 763beta@{i}_f=beta@{i}_f_fss; 764PD@{i}=PD@{i}_fss; 765c@{i}=c@{i}_fss; 766P@{i}=P@{i}_fss; 767P@{i}_f=P@{i}_f_fss; 768@#endfor 769 770wb = wb_fss; 771wb_f = wb_f_fss; 772Omega = Omega_fss; 773Omega_f = Omega_f_fss; 774Omega_hf = Omega_hf_fss; 775V = V_fss ; 776M = M_fss ; 777qq = qq_fss ; 778p = p_fss ; 779N = N_fss ; 780N_f = N_f_fss ; 781Q = Q_fss ; 782RR = RR_fss ; 783H = H_fss ; 784K = K_fss ; 785Y = Y_fss ; 786gdp = gdp_fss ; 787nx = nx_fss ; 788FH = FH_fss ; 789pi = pi_fss ; 790ct = ct_fss ; 791st = st_fss ; 792wshare = wshare_fss ; 793rr = rr_fss ; 794 795gamma = gamma_fss ; 796mc = mc_fss ; 797phii = phii_fss ; 798D = D_fss ; 799DH = DH_fss ; 800DF = DF_fss ; 801X = X_fss ; 802bs = bs_fss ; 803bsY = bsY_fss ; 804P00_f = P00_f_fss; 805 806eps_rhol=eps_rhol_fss; 807eps_rhoe=eps_rhoe_fss; 808eps_rhou=eps_rhou_fss; 809rhou=rhoub*eps_rhou_fss; 810rhoe=rhoeb*eps_rhoe_fss; 811rhol=rholb*eps_rhol_fss; 812eps_tauc=eps_tauc_fss; 813eps_tauk=eps_tauk_fss; 814eps_tauw=eps_tauw_fss; 815eps_tauf=eps_tauf_fss; 816tauw=tauwb*eps_tauw; 817tauc=taucb*eps_tauc; 818tauf=taufb*eps_tauf; 819tauk=taukb*eps_tauk; 820eps_theta=eps_theta_fss; 821eps_gh=eps_gh_fss; 822eps_TFP=eps_TFP_fss; 823eps_g=eps_g_fss; 824g=gb*eps_g_fss; 825TFP=TFPb*eps_TFP_fss; 826gh=ghb*eps_gh_fss; 827theta=thetab*eps_theta_fss; 828 829rrb=rrbb; 830tau1=tau1b; 831om1=om1b; 832om2=om2b; 833om2s=om2sb; 834 835eps_Ds=1; 836eps_phijs=1; 837Ds=Dsb*eps_Ds; 838phijs=phijsb*eps_phijs; 839 840eps_PensCorr_F=eps_PensCorr_F_fss; 841eps_PensCorr_L=eps_PensCorr_L_fss; 842PensCorr_F=eps_PensCorr_F_fss; 843PensCorr_L=eps_PensCorr_L_fss; 844 845P00 = P00_fss ; 846P00_foP00 = P00_foP00_fss ; 847 848DepRatio_n= 849@#for i in rg 850+P@{i} 851@#endfor 852; 853DepRatio_d= 854@#for i in wg 855+P@{i} 856@#endfor 857; 858 859DepRatio=DepRatio_n/DepRatio_d; 860 861ZARA=age_early+length_period*( 862@#for i in erg 863+1-i@{i} 864@#endfor 865); 866 867Ptot= 868@#for i in ag 869+P@{i} 870@#endfor 871; 872Ptot_f= 873@#for i in ag 874+P@{i}_f 875@#endfor 876; 877 878sleep=(1+rr)*( 879@#for i in nbg 880+1/beta@{i}*(1-1/beta@{i}^(ann-1))*s@{i-1}*P@{i} 881@#endfor 882)/(1+gh); 883 884du=rhou*( 885@#for i in wg 886+w@{i}*u@{i}*P@{i} 887@#endfor 888); 889 890de=rhoe*( 891@#for i in erg 892+w@{i}*i@{i}*P@{i}+w@{i}_f*i@{i}_f*P@{i}_f 893@#endfor 894); 895 896dl= 897@#for i in rg 898+rhol*wb*PensCorr_L*P@{i}+rhol*wb_f*(N_f/(N+N_f))*PensCorr_F*P@{i}_f 899@#endfor 900; 901 902inA=(tauw+tauf)*( 903@#for i in wg 904+n@{i}*w@{i}*P@{i}+n@{i}_f*w@{i}_f*P@{i}_f 905@#endfor 906); 907 908inB=tauk*rr*( 909@#for i in nbg 910+1/beta@{i}^ann*s@{i-1}*P@{i} 911@#endfor 912)/(1+gh); 913 914in=tauc*ct+inA+inB+sleep; 915NBR=g*phii*gdp+(du+de+dl)-(in); 916NBRY=NBR/(phii*gdp); 917NBR2=NBR; 918tauf2=tauf; 919tauw2=tauw; 920tauc2=tauc; 921 922end; 923 924%======================================================== 925% compute final steady state and check eigenvalues 926%======================================================== 927 928resid; 929steady(solve_algo=3); 930check; 931 932 933% =================================================== 934shocks; 935% =================================================== 936 937var P00; 938 periods 1:99; 939 values (se_P00); 940 941@#for i in nbg 942var beta@{i}; 943 periods 1:99; 944 values (se_beta@{i}); 945var beta@{i}_f; 946 periods 1:99; 947 values (se_beta@{i}_f); 948var PD@{i}; 949 periods 1:99; 950 values (se_PD@{i}); 951@#endfor 952 953var P00_foP00; 954 periods 1:99; 955 values (se_P00_foP00); 956 957var eps_g; 958 periods 1:99; 959 values (se_eps_g); 960 961var eps_PensCorr_F; 962 periods 1:99; 963 values (se_eps_PensCorr_F); 964 965var eps_PensCorr_L; 966 periods 1:99; 967 values (se_eps_PensCorr_L); 968 969end; 970 971% ******************************************* 972% Numerical Simulation, Control Parameters 973% ******************************************* 974 975simul(periods=125,maxit=100); 976 977if ~oo_.deterministic_simulation.status 978 error('Perfect foresight simulation failed') 979end 980