var h x a e z v y k in c d m w r q n tau lambd ksi pi e0 z0 pi0 y0 r0 tau0;
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;
pi0=pi0;
e0=e0;
z0=z0;
y0=y0;
r0=r0;
tau0=tau0;
ln(x)=rhox*ln(x(-1))+epsilonx;
ln(a)=rhoa*ln(a(-1))+epsilona;
ln(e)=(1-rhoe)*ln(e0)+rhoe*e(-1)+epsilone;
ln(z)=(1-rhoz)*ln(z0)+rhoz*z(-1)+epsilonz;
ln(v)=rhov*ln(v(-1))+epsilonv;
q=0.035;
in=0.025*k;
pi=0.99*r;
n=y/h;
1=lambd*c^(23.81)*(c^(-22.81)+m^(-22.81));
k*(1-h)=1;
c=m*(1-1/r)^0.042;
y=c+0.025*k+25*(((0.99*r/pi0)-1)^2)*y;
d=y-0.117*k-25*((0.99*r/pi0-1)^2)*y;
w*h/k=6;
lambd*0.035*k=0.3*ksi*y;
50*lambd*(0.99*r/pi0-1)*(0.99*r/pi0)=-5*lambd-6*ksi-0.99*50*lambd*((0.99*r/pi0)-1)*(0.99*r/pi0);
y=(k^0.3)*(h)^0.7;
ln(r/r0)=0.38*ln(tau/tau0)+1.3*ln(0.99*r/pi0)+0.125*ln(y/y0)+ln(v);
tau=(m/m(-1))*0.99*r;
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;