1var y c k m n R pi z u; 2varexo e sigma; 3// sigma stands for phi in the eq 2.37 p.69 4 5parameters alpha beta delta gamm phi1 eta a b rho phi2 Psi thetass; 6//phi1 stands for capital phi in eq.2.68 and 2.69 7//phi2 stands for lowercase phi in eq. 2.66 8 9change_type(var) Psi; 10change_type(parameters) n; 11 12alpha = 0.36; 13beta = 0.989; 14gamm = 0.5; 15delta = 0.019; 16phi1 = 2; 17phi2 = 0; 18eta = 1; 19a = 0.95; 20b = 2.56; 21rho = 0.95; 22//Psi = 1.47630583; 23thetass = 1.0125; 24 25model; 26 27(a*exp(c)^(1-b)+(1-a)*exp(m)^(1-b))^((b-phi1)/(1-b))*a*exp(c)^(-b) = (a*exp(c)^(1-b)+(1-a)*exp(m)^(1-b))^((b-phi1)/(1-b))*(1-a)*exp(m)^(-b)+beta*(a*exp(c(+1))^(1-b)+(1-a)*exp(m(+1))^(1-b))^((b-phi1)/(1-b))*a*exp(c(+1))^(-b)/(1+pi(+1)); 28 29Psi*(1-exp(n))^(-eta)/(a*exp(c)^(-b)*(a*exp(c)^(1-b) + (1-a)*exp(m)^(1-b))^((b-phi1)/(1-b))) = (1-alpha)*exp(y)/exp(n); 30 31(a*exp(c)^(1-b)+(1-a)*exp(m)^(1-b))^((b-phi1)/(1-b))*a*exp(c)^(-b) = beta*exp(R(+1))*(a*exp(c(+1))^(1-b)+(1-a)*exp(m(+1))^(1-b))^((b-phi1)/(1-b))*a*exp(c(+1))^(-b); 32 33exp(R) = alpha*exp(y)/exp(k(-1)) + 1-delta; 34 35exp(k) = (1-delta)*exp(k(-1))+exp(y)-exp(c); 36 37exp(y) = exp(z)*exp(k(-1))^alpha*exp(n)^(1-alpha); 38 39exp(m) = exp(m(-1))*(u+thetass)/(1+pi); 40 41z = rho*z(-1) + e; 42 43u = gamm*u(-1) + phi2*z(-1) + sigma; 44 45end; 46 47shocks; 48var e; stderr 0.007; 49var sigma;stderr 0.0089; 50end; 51 52n=log(1/3); 53 54initval; 55y = 0.2; 56c = 0.03; 57k = 2.7; 58m = 0.3; 59Psi = 1.5; 60R = 0.01; 61pi = 0.01; 62z = 0; 63u = 0; 64end; 65 66 67steady; 68 69