var 		z pi p i u;
varexo  	u_init;

omegas= [0.8 0.75 0.70]

 
parameters  beta rho sigma delta_pi theta delta_z omega kappa;

zz=[];
pipi=[];
pp=[];
ii=[];
uu=[];

for k=1:length(omegas)
 
beta          = 0.99;
rho           = 0.8; 
sigma         = 1;
delta_pi      = 1.5;
theta         = 1.16;
delta_z       = 0.5;
omega         = omegas(k);
kappa         = ((1-omega)*(1-omega*beta))/omega;
 
 
model(linear);

z = z(+1)-1/sigma*(i-pi(+1)); 
i = delta_pi*pi+delta_z*z;
pi = beta*pi(+1)+(sigma+theta)*kappa*z+u;
pi = p-p(-1);
 
u = rho*u(-1)+u_init(-2);   // anticipated cost shock, two periods before materialization

end;
 
steady; 
check;
 
shocks;
var u_init = 1;

end;
 
 
stoch_simul(irf=100, nograph);


end;