var h x a e z v y k in c d m w r q n tau lambd ksi pi;
varexo epsilona epsilone epsilonx epsilonz epsilonv;
parameters rhoa rhoe rhox rhoz rhov alph phip phik lne lnz sigmaa sigmae sigmax sigmaz sigmav omegapi omegay omegatau bet et delt thet gamm;

rhoa=0.75;
rhoe=0.75;
rhox=0.75;
rhoz=0.75;
rhov=0.50;
alph=0.3;
phip=50;
phik=32.14;
lne=1.39;
lnz=8.13;
sigmaa=0.01;
sigmae=0.01;
sigmax=0.01;
sigmaz=0.01;
sigmav=0.01;
omegapi=1.3;
omegay=0.125;
omegatau=0.38;
bet=0.99;
et=1.5;
delt=0.025;
thet=6;
gamm=0.042;

model;
k(+1)=(1-delt)*k+x*in;
ln(x)=rhox*ln(x(-1))+epsilonx;
ln(a)=rhoa*ln(a(-1))+epsilona;
ln(e)=(1-rhoe)*ln(steady_state(e))+rhoe*e(-1)+epsilone;
ln(z)=(1-rhoz)*ln(steady_state(z))+rhoz*z(-1)+epsilonz;
ln(v)=rhov*ln(v(-1))+epsilonv;
a=lambd*c^(1/gamm)*(c^((gamm-1)/gamm)+e^(1/gamm)*(m^(gamm-1)/gamm)));
lambd*w*(1-h)=et;
c*e=m*(1-1/r)^gamm;
lambd=bet*r*((lambd(+1))/(pi(+1)));
lambd*(1/x+phik*(k(+1)/k-1))=bet*(lambd(+1))*((q(+1))+0.975)-15.91*(lambd(+1)*(k(+2)/k(+1)-1)^2)+0.99*32.14*lambd(+1)*(k(+2)/k(+1)-1)*(k(+2)/k(+1));
y=c+in+(phik/2)*((k(+1)/k-1)^2)*k+(phip/2)*(((pi/steady_state(pi))-1)^2)*y;
d=y-w*h+q*k-(phip/2)*((pi/steady_state(pi)-1)^2)*y;
lambd*w*h=(1-alph)*ksi*y;
lambd*q*k=alph*ksi*y;
(phip/2)*lambd*(pi/steady_state(pi)-1)*(pi/steady_state(pi))=(1-thet)*lambd-thet*ksi-bet*phip*(lambd(+1))*((pi/steady_state(pi))-1)*(pi/steady_state(pi))*((y(+1))/y);
y=(k^alph)*(z*h)^(1-alph);
ln(r/steady_state(r))=omegatau*ln(tau/steady_state(tau))+omegapi*ln(pi/steady_state(pi))+omegay*ln(y/steady_state(y))+ln(v);
n=y/h;
tau=(m/m(-1))*pi;
end;

steady;

shocks;
var epsilona=sigmaa^2;
var epsilone=sigmae^2;
var epsilonx=sigmax^2;
var epsilonz=sigmaz^2;
var epsilonv=sigmav^2;
end;

stoch_simul;