%% HOUSEHOLDS

% INTA-TEMPORAL EULUER EQUATIONS
wH - pH = psi*nSH + sigma*cSH;
wH - pH = psi*nBH + sigma*cBH;

% INTER-TEMPORAL EULER EQUATIONS
-sigma*(cSH(+1) - cSH) = piH(+1) - i;
-sigma*(cBH(+1) - cBH) = piH(+1) - i;


% BUDGET CONSTRAINTS
cSH + pH = (wHss*nSHss/(pHss*cSHss))*(wH + nSH) + vS*(dss/(pHss*cSHss))*d;
cBH + pH = (wHss*nBHss/(pHss*cBHss))*(wH + nBH) + vB*(dss/(pHss*cBHss))*d;

% TADABLE - NONTADABLE SHARES
cH - cHT = eta*(pHT-pH); 
cH - cHNT = eta*(pHNT-pH);

%% FIRMS
yHT = gammaT*nHT; 
yHNT = gammaNT*nHNT; 

% NKPCs
piHT = beta*piHT(+1) + kappaT*(wH - pHT + ((1-gammaT)/gammaT)*yHT);
piHNT = beta*piHNT(+1) + kappaNT*(wH - pHNT + ((1-gammaNT)/gammaNT)*yHNT);

% DIVIDENDS
d = (yHTss*pHTss/dss)*(pHT + yHT) + (yHNTss*pHNTss/dss)*(pHNT + yHNT) - (wHss*nHss/dss)*(wH + nH);

%% MARKET CLEARING

% LABOR
nH = phiBH*(nBHss/nHss)*nBH + (1-phiBH)*(nSHss/nHss)*nSH;

% CONSUMPTION
cHNT = yHNT;
%cHT = yHT;

%% AGGREGATION
cH = phiBH*(cBHss/cHss)*cBH + (1-phiSH)*(cSHss/cHss)*cSH;

%% PRICES and DEFINITIONS	
pH = alpha*(pHTss/pHss)^(1-eta)*pHT + (1-alpha)*(pHNTss/pHss)^(1-eta)*pHNT;
piH = pH - pH(-1);
piHT = pHT - pHT(-1);
piHNT = pHNT - pHNT(-1);

%% MONETARY POLICY
i = phipiH*piH + mshock;
mshock = 0.95*mshock(-1) + epsM;