//Preamble
var y;
varexo e;
parameters alpha sigma;
alpha=0.75;
sigma =1;
//Model
model;
y=1+ alpha*y(-1) + e;
end;
initval;
e=0;
y=4; //ybar=1+0.75ybar => solve for ybar=4
end;
steady;
check;
// Shock section
shocks;
var e;
stderr sigma;
end;
stoch_simul(order=1); // Or stoch_simul;