alpha = 0.3; % share of capital in ouput
beta = 0.99; % discount factor
gamma_p = 0.75;
theta_p = 0.75;
sigmaC = 1.5; % risk aversion consumption
sigmaL = 2; % labor disutility
rho_r = .9; % Monetary Policy Smoothing Parameter
phi_ry = .125; % Monetary Policy GDP Growth Target
phi_rpi = 1.5; % Monetary Policy Inflation Growth Target
rho_a = 0.95; % productivity
rho_q = 0.95; % risk premium
rho_b = 0.85; % inter-temporal preference
rho_l = 0.85; % labor disutility preference
rho_g = .9; % Expenditure Policy Smoothing Parameter
phi_gb = .2;
phi_gy = .1; % Expenditure Policy GDP Growth Target
rho_tc = .9; % Tax Policy Smoothing Parameter
phi_tcb = .2; % Tax Policy Debt Growth Target
phi_tcy = 0.4;
rho_tw = .9; % Tax Policy Smoothing Parameter
phi_twb = .2; % Tax Policy Debt Growth Target
phi_twy = .4; % Tax Policy Debt Growth Target
rho_tk = .9; % Tax Policy Smoothing Parameter
phi_tkb = .2; % Tax Policy Debt Growth Target
phi_tky = 0.4; % Tax Policy Debt Growth Target
phi_tr = 0.2;
psi = 0.25;
phi_rb = -0.8;
phi_tctw = 0.05;
phi_twtc = 0.05;
phi_tktc = 0.05;
phi_tctk = 0.05;
phi_twtk = 0.25;
phi_tktw = 0.25;
delta = 0.025;
% steady states
PI = 1.005;
Q = 1;
R = PI/(beta*Q);
GY = 0.18;
IY = 0.22;
KY = IY/delta;
CY = 1-GY-delta*KY;
WY = 1-alpha;
BY = 0.6;
TC = 0.183;
TW = 0.122;
TK = 0.184;
TR = 0.195;
DY = 0.75;
Z = (1/beta-1+delta)/(1-TK);