var xtil, x, YA, pitil, pi, ira,  rn_t, lambdaAn, YAn, delta, gamma_t, u, gYa, pia;

varexo edelta, egamma , eu;

parameters omega, xi, eta, zeta, ra, gammaa, rhodelta, rhogamma, rhou, pibar;

omega = .97;
xi = .0395;
eta = .257;
zeta = .14;
kappa = .9;
ra = 2.3;
gammaa = 3.1;
rhodelta = .9;
rhogamma = .76;
rhou = .23;
pibar = .0065;
vcovmat = [0.992^2, 0, 0; 0, 0.9519^2,0; 0, 0, .4961^2];


model(linear);
# beta = 0.99;
# gamma = gammaa/400;
# phigammatil = exp(gamma)/(exp(gamma)-beta*eta);
# etagammatil = exp(gamma)/(exp(gamma)-eta);
# phigamma = phigammatil*etagammatil;
# etagamma = eta/exp(gamma);
# r = ra/400;
xtil = xtil(+1) - phigamma^(-1)*(ira/400 - pi(+1) - rn_t);
xtil = x - (beta*etagamma)*(x(+1) - etagamma*x);
x = YA - YAn;
pitil = beta*pitil(+1) + xi*(omega*x + phigamma*xtil);
pitil = pi - zeta*pi(-1)-(1-zeta)*pibar;
lambdaAn = lambdaAn(+1) - gamma_t(+1) + rn_t - r - delta(+1);
lambdaAn = -phigamma*(YAn - etagamma*(YA(-1) - gamma_t) - beta*etagamma*(YAn(+1) + gamma_t(+1) - etagamma*YAn)) + ((beta*eta)/(exp(gamma) - beta*eta))*delta(+1);
YAn = (1/omega)*(lambdaAn-(1/xi)*u);
delta = rhodelta*delta(-1) + (edelta/400);
gamma_t = rhogamma*gamma_t(-1) + (egamma/400);
u = rhou*u(-1) + (eu/400);
gYa = gammaa + 400*(YA - YA(-1) + gamma_t);
pia = 400*pi;
end;

shocks;
var edelta;
stderr .9992;
var egamma;
stderr .9519;
var eu;
stderr .4961;
end;

initval;

gYa = 2.904087047;
pia = 2.807212363;
rn_t = 0.032439476;
ira = 4.978674284;
u  = 0.001214585;
YA = 0.002719271;
delta = 0.002491553;
gamma_t = 0.001307661;
pi = 0.007018031;
lambdaAn = 0.029856386;
pitil = 0.000667656;
x = 0.016445894;
xtil = 0.016869498;
YAn = -0.013726623;

end;

olr_inst ira;

optim_weights;
gya 1;
pia  1;
end;

olr(simul,periods=100,drop=10,irf=0);