Is the method correct to get predictions? Can we compute predictions without initial value?

var

c l k w r iv y

;

parameters

ALPHA

BETA

DELTA

b

;

% parameters caliberation

ALPHA = 0.35;

BETA = 0.99;

DELTA = 0.025;

b = 2;

% parameters caliberation

ALPHA = 0.35;

BETA = 0.99;

DELTA = 0.025;

b = 2;

model;

c (+1)/c= BETA * (1+ r (+1) - DELTA (+1));

1-l/c = b/w;

r = 1/k;

w = 1/l;

c = y - iv;

iv = (k (+1) - (1-DELTA) * k);

y = log (k) + log (l);

end;

% computation

initval;

c = 0.3;

l = 0.2;

k = 4;

w = 1;

r = 1/BETA-1;

iv = 1;

y = 1;

end;

perfect_foresight_setup (periods = 10);

perfect_foresight_solver;

rplot c;