periods 500;
var c k lab z;
varexo e;
parameters bet the del alp tau rho s;
bet = 0.95;
the = 0.357;
del = 0.012;
alp = 0.296;
tau = 2;
rho = 0.95;
s = 0.007;
model;
(c^the*(1-lab)^(1-the))^(1-tau)/c = bet*((c(+1)^the*(1-lab(+1))^(1-the))^(1-tau)/c(+1))*
(1+alp*exp(z(-1))*k(-1)^(alp-1)*lab^(1-alp)-del);
c = the/(1-the)*(1-alp)*exp(z(-1))*k(-1)^alp*lab^(-alp)*(1-lab);
k = exp(z(-1))*k(-1)^alp*lab^(1-alp)-c+(1-del)*k(-1);
z = rho*z(-1)+s*e;
end;
initval;
k = 1;
c = 1;
lab = 0.3;
z = 0;
e = 0;
end;
shocks;
var e;
periods 1:200;
stderr 1;
end;
steady;
stoch_simul(dr_algo=0,periods=500); datasaver(’simudata’,[]);