var y p c b rb g z; varexo eps; parameters cdelta, eta, sig, cbeta, cgam, crho, csigma; cdelta = 0.36; eta = 0.05; sig = 0.67; cbeta = 0.99; cgam = 1; crho = 0.5; csigma = 0.02; model; (1-cdelta/cdelta)*(c+g)^(1+eta) = p+b; (cgam/1-b) = (g/y); g^1-sig = ((1+c+g)^cbeta)*(g^1-sig); y = -rb+cgam*b(+1)+c+g; b = exp(z)*(g/y); rb = exp(z)*(b/g); z = crho*z(-1)+ eps; end; initval; y = 9; p = 8; c = 5; b = 10; rb = 1; g = 4; z = 0; end; steady; shocks; var eps = csigma^2; end; stoch_simul(order=2, irf=40, periods=2000);