1var y pie r;
2varexo e_y e_pie;
3
4parameters delta sigma alpha kappa gamma1 gamma2;
5
6delta =  0.44;
7kappa =  0.18;
8alpha =  0.48;
9sigma = -0.06;
10
11gamma1 = 1.5;
12gamma2 = 0.5;
13
14model(use_dll);
15y  = delta * y(-1)  + (1-delta)*y(+1)+sigma *(r - pie(+1)) + e_y;
16pie  =   alpha * pie(-1) + (1-alpha) * pie(+1) + kappa*y + e_pie;
17r = gamma1*pie+gamma2*y;
18end;
19
20shocks;
21var e_y;
22stderr 0.63;
23var e_pie;
24stderr 0.4;
25end;
26
27steady;
28
29
30// Extended path simulation
31options_.ep.order = 0;
32ts = extended_path([], 100, [], options_, M_, oo_);
33
34// Stochastic extended path simulation
35options_.ep.order = 1;
36sts = extended_path([], 100, [], options_, M_, oo_);
37
38// The generated paths should be identical (because the model is linear)
39if max(max(abs(ts.data-sts.data))) > 1e-12
40   error('extended path algorithm fails in ./tests/ep/linearmodel.mod')
41end
42