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- // RBC level
- var Y C N W R I K A;
- varexo e;
- // params
- parameters alpha beta sigma phi delta rhoa;
- alpha = 0.35;
- beta = 0.985;
- sigma = 2;
- phi = 1.5;
- delta = 0.025;
- rhoa = 0.95;
- // model block
- model;
- #Ass = 1;
- //1-Consumption-labor supply
- (C^sigma) * (N^phi) = W;
- //2-Euler equation
- C(+1) = beta * C * (R(+1) + 1 - delta);
- //3-Law of motion of capital
- K = (1-delta)*K(-1) + I;
- //4-production function
- Y = A * K(-1)^alpha * N^(1-alpha);
- //5-demand for capital
- K(-1) = alpha * Y/R;
- //6-demand for labor
- N = (1-alpha) * Y/W;
- //7-Equilibrium condition
- Y = C + I;
- //8-Productivity shock
- A = exp( (1-rhoa)*log(Ass) + rhoa*log(A(-1)) + e);
- end;
- initval;
- A = 1;
- K = 10;
- N = 0.3;
- C = 1;
- I = 0.25;
- Y = 1.25;
- R = 0.04;
- W = 1;
- end;
- steady(maxit=1000);
- check;
- model_diagnostics;
- model_info;
- shocks;
- var e;
- stderr 0.01;
- end;
- stoch_simul(order=1, irf=40, tex) Y C N W R I K A;
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