function [ys,check] = NK_baseline_steadystate(ys,exo)
% function [ys,check] = NK_baseline_steadystate(ys,exo)
% computes the steady state for the NK_baseline.mod and uses a numerical
% solver to do so
% Inputs: 
%   - ys        [vector] vector of initial values for the steady state of
%                   the endogenous variables
%   - exo       [vector] vector of values for the exogenous variables
%
% Output: 
%   - ys        [vector] vector of steady state values fpr the the endogenous variables
%   - check     [scalar] set to 0 if steady state computation worked and to
%                    1 of not (allows to impos restriction on parameters)

global M_ 

% read out parameters to access them with their name
NumberOfParameters = M_.param_nbr;
for ii = 1:NumberOfParameters
  paramname = deblank(M_.param_names(ii,:));
  eval([ paramname ' = M_.params(' int2str(ii) ');']);
end
% initialize indicator
check = 0;


%% Enter model equations here

options=optimset(); % set options for numerical solver

% the steady state computation follows FV (2006), section 4.1
PI=PIbar;
u=1;
q=1;
d=1;
phi=1;
m=0;
zeta=1;
LambdaYd= (LambdaA+alppha*Lambdamu)/(1-alppha);
mu_z=exp(LambdaYd);
mu_I=exp(Lambdamu);
mu_A=exp(LambdaA);

%set the parameter Lambdax
Lambdax=mu_z;

%set the parameter gammma1
gammma1=mu_z*mu_I/betta-(1-delta);
if gammma1<0 % parameter violates restriction; Preventing this cannot be implemented via prior restriction as it is a composite of different parameters and the valid prior region has unknown form
    check=1; %set failure indicator
    return; %return without updating steady states
end


r=1*gammma1;
R=1+(PI*mu_z/betta-1);

%set Rbar
Rbar=R;

PIstar=((1-thetap*PI^(-(1-epsilon)*(1-chi)))/(1-thetap))^(1/(1-epsilon));
PIstarw=((1-thetaw*PI^(-(1-chiw)*(1-eta))*mu_z^(-(1-eta)))/(1-thetaw))^(1/(1-eta));

mc=(epsilon-1)/epsilon*(1-betta*thetap*PI^((1-chi)*epsilon))/(1-betta*thetap*PI^(-(1-epsilon)*(1-chi)))*PIstar;
w=(1-alppha)*(mc*(alppha/r)^alppha)^(1/(1-alppha));
wstar=w*PIstarw;
vp=(1-thetap)/(1-thetap*PI^((1-chi)*epsilon))*PIstar^(-epsilon);
vw=(1-thetaw)/(1-thetaw*PI^((1-chiw)*eta)*mu_z^eta)*PIstarw^(-eta);
tempvaromega=alppha/(1-alppha)*w/r*mu_z*mu_I;

[ld,fval,exitflag]=fzero(@(ld)(1-betta*thetaw*mu_z^(eta-1)*PI^(-(1-chiw)*(1-eta)))/(1-betta*thetaw*mu_z^(eta*(1+gammma))*PI^(eta*(1-chiw)*(1+gammma)))...
-(eta-1)/eta*wstar/(varpsi*PIstarw^(-eta*gammma)*ld^gammma)*((1-h*mu_z^(-1))^(-1)-betta*h*(mu_z-h)^(-1))*...
((mu_A*mu_z^(-1)*vp^(-1)*tempvaromega^alppha-tempvaromega*(1-(1-delta)*(mu_z*mu_I)^(-1)))*ld-vp^(-1)*Phi)^(-1),0.25,options);
if exitflag <1
    %indicate the SS computation was not sucessful; this would also be detected by Dynare
    %setting the indicator here shows how to use this functionality to
    %filter out parameter draws
    check=1; %set failure indicator
    return; %return without updating steady states
end


l=vw*ld;
k=tempvaromega*ld;
x=(1-(1-delta)*(mu_z*mu_I)^(-1))*k;
yd=(mu_A/mu_z*k^alppha*ld^(1-alppha)-Phi)/vp;
c=(mu_A*mu_z^(-1)*vp^(-1)*tempvaromega^alppha-tempvaromega*(1-(1-delta)*(mu_z*mu_I)^(-1)))*ld-vp^(-1)*Phi;
lambda=(1-h*betta*mu_z^(-1))*(1-h/mu_z)^(-1)/c;
F=yd-1/(1-alppha)*w*ld;
f=(eta-1)/eta*wstar*PIstarw^(-eta)*lambda*ld/(1-betta*thetaw*mu_z^(eta-1)*PI^(-(1-chiw)*(1-eta)));
f2=varpsi*d*phi*PIstarw^(-eta*(1+gammma))*ld^(1+gammma)/(1-betta*thetaw*(PI^chiw/PI)^(-eta*(1+gammma))*(wstar/wstar*mu_z)^(eta*(1+gammma)));

g1=lambda*mc*yd/(1-betta*thetap*PI^((1-chi)*epsilon));
g2=epsilon/(epsilon-1)*g1;

% the steady state computation follows FV (2006), section 4.1
PIf=PIbar;
uf=1;
qf=1;
d=1;
phi=1;
m=0;
zeta=1;
LambdaYd= (LambdaA+alppha*Lambdamu)/(1-alppha);
mu_z=exp(LambdaYd);
mu_I=exp(Lambdamu);
mu_A=exp(LambdaA);

%set the parameter Lambdax
Lambdax=mu_z;

%set the parameter gammma1
gammma1=mu_z*mu_I/betta-(1-delta);
if gammma1<0 % parameter violates restriction; Preventing this cannot be implemented via prior restriction as it is a composite of different parameters and the valid prior region has unknown form
    check=1; %set failure indicator
    return; %return without updating steady states
end


rf=1*gammma1;
Rf=1+(PIf*mu_z/betta-1);

%set Rbar
Rbar=Rf;

PIstarf=1;
PIstarwf=1;

mcf=(epsilon-1)/epsilon;
wf=(1-alppha)*(mcf*(alppha/rf)^alppha)^(1/(1-alppha));
wstarf=wf*PIstarwf;
vpf=1;
vwf=1;
tempvaromegaf=alppha/(1-alppha)*wf/rf*mu_z*mu_I;

[ldf,fval,exitflag]=fzero(@(ld)(1-betta*0*mu_z^(eta-1)*PIf^(-(1-0)*(1-eta)))/(1-betta*0*mu_z^(eta*(1+gammma))*PIf^(eta*(1-0)*(1+gammma)))...
-(eta-1)/eta*wstarf/(varpsi*PIstarwf^(-eta*gammma)*ld^gammma)*((1-h*mu_z^(-1))^(-1)-betta*h*(mu_z-h)^(-1))*...
((mu_A*mu_z^(-1)*vpf^(-1)*tempvaromegaf^alppha-tempvaromegaf*(1-(1-delta)*(mu_z*mu_I)^(-1)))*ld-vpf^(-1)*Phi)^(-1),0.25,options);
if exitflag <1
    %indicate the SS computation was not sucessful; this would also be detected by Dynare
    %setting the indicator here shows how to use this functionality to
    %filter out parameter draws
    check=1; %set failure indicator
    return; %return without updating steady states
end


lf=vwf*ldf;
kf=tempvaromegaf*ldf;
xf=(1-(1-delta)*(mu_z*mu_I)^(-1))*kf;
ydf=(mu_A/mu_z*kf^alppha*ldf^(1-alppha)-Phi)/vpf;
cf=(mu_A*mu_z^(-1)*vpf^(-1)*tempvaromegaf^alppha-tempvaromegaf*(1-(1-delta)*(mu_z*mu_I)^(-1)))*ldf-vpf^(-1)*Phi;
lambdaf=(1-h*betta*mu_z^(-1))*(1-h/mu_z)^(-1)/cf;
Ff=ydf-1/(1-alppha)*wf*ldf;

interest     = 0;
inflation    = 0;
inflationq   = 0;
outputgap    = 0;
output       = 0;

inter       = R/Rbar;
output_gap  = 0;
infl        = PI/PIbar;

%% end own model equations

for iter = 1:length(M_.params) %update parameters set in the file
  eval([ 'M_.params(' num2str(iter) ') = ' M_.param_names(iter,:) ';' ])
end

NumberOfEndogenousVariables = M_.orig_endo_nbr; %auxiliary variables are set automatically
for ii = 1:NumberOfEndogenousVariables
  varname = deblank(M_.endo_names(ii,:));
  eval(['ys(' int2str(ii) ') = ' varname ';']);
end