Attachment 'ACDM.mod'

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   1 // mod?le version d?finitive.
   2 // 05-10-2006
   3 
   4 var 
   5     // model with flexible prices (FP-model) - non linear
   6     wstar $w^*$
   7     Lstar $L^*$
   8     Cstar $C^*$
   9     mcstar $mc^*$
  10     xstar $x^*$
  11     Istar $I^*$
  12     Kstar $K^*$
  13     Qstar $Q^*$
  14     rstar $r^*$
  15     rkstar $r^{K*}$
  16     zstar $z^*$
  17     Ktilstar $\tilde{K}^*$
  18     Ystar $Y^*$
  19     G $G$
  20     // model with sticky prices - non linear
  21     w $w$
  22     L $L$
  23     C $C$
  24     mc $mc$
  25     x $x$
  26     I $I$
  27     K $K$
  28     Q $Q$
  29     r $r$
  30     rk $r^K$
  31     z $z$
  32     Ktil $\tilde{K}$
  33     Y $Y$
  34     UL $U^L$
  35     UC $U^C$
  36     ptitl $l$
  37     pi $\pi$
  38     wtild $\tilde{w}$
  39     H1 $\mathcal{H}_1$
  40     H2 $\mathcal{H}_2$
  41     pitarget $\bar{\pi}$
  42     mult $\lambda$
  43     p $p$
  44     Q1 $\mathcal{Q}_1$
  45     Q2 $\mathcal{Q}_2$
  46     R $R$
  47     Dp $D_p$
  48     // fiscal shocks
  49     taur $\tau^r$
  50     tauw $\tau^W$
  51     taul $\tau^l$
  52     tauk $\tau^K$
  53     tauc $\tau^C$
  54     tauy $\tau^y$
  55     // technological & preferences shocks
  56     epsa $\varepsilon^a$
  57     epsb $\varepsilon^B$
  58     epsi $\varepsilon^I$
  59     epsl $\varepsilon^L$
  60 ;
  61 
  62 varexo 
  63     // fiscal shocks
  64     e_c $\nu^C$
  65     e_l $\nu^l$
  66     e_g $\nu^G$
  67     e_w $\nu^W$
  68     e_r $\nu^r$
  69     e_y $\nu^y$
  70     e_k $\nu^K$
  71     // tech & pref shocks
  72     n_a $\eta^a$
  73     n_l $\eta^L$
  74     n_b $\eta^B$
  75     n_i $\eta^I$
  76     n_q $\eta^Q$
  77     // inflation-related shocks
  78     e_pi $\eta^{\pi}$
  79     e_taylor $\eta^R$
  80 ;
  81 
  82 parameters
  83     // deep parameters
  84     nu $\nu$
  85     alpha $\alpha$
  86     sigmal $\sigma_l$
  87     sigmac $\sigma_c$
  88     eps $\epsilon$
  89     teta $\theta$
  90     iphi $\varphi^{-1}$
  91     Gdpsi $\Psi$
  92     beta $\beta$
  93     h $h$
  94     gY $g_Y$
  95     lambdaw $\lambda_w$
  96     lambdap $\lambda_p$
  97     mhu $\mu$
  98     xiw $\xi_w$
  99     xip $\xi_p$
 100     gammaw $\gamma_w$
 101     gammap $\gamma_p$
 102     // Taylor's rule
 103     rho $\rho$
 104     rpi $\rho_pi$
 105     ry $\rho_y$
 106     rdeltapi $\rho_{\triangle \pi}$
 107     rdeltay $\rho_{\triangle \y}$  
 108     // shocks parameters
 109     rhor $\rho^r$
 110     rhow $\rho^w$
 111     rhol $\rho^l$
 112     rhok $\rho^K$
 113     rhoc $\rho^C$
 114     rhoy $\rho^y$
 115     rhog $\rho^g$
 116     zetaa $\zeta^a$
 117     zetab1 $\zeta^B$
 118     // zetab2 $\zeta^B_2$
 119     zetai $\zeta^I$
 120     zetal$\zeta^L$
 121     rhopi $\rho^\pi$
 122     // steady state values
 123     taurbar $\bar{\tau^r}$
 124     tauwbar $\bar{\tau^W}$
 125     taulbar $\bar{\tau^l}$
 126     taukbar $\bar{\tau^K}$
 127     taucbar $\bar{\tau^C}$
 128     tauybar $\bar{\tau^y}$
 129     zbar $\bar{z}$
 130     Gbar $\bar{G}$
 131     FixedCost $\Phi$
 132     pibar $\bar{\pi}$
 133     Rbar $\bar{R}$
 134     // Useless parameters (bug in Dynare v4?)
 135     wbar $\bar{w}$
 136     Lbar $\bar{L}$
 137     Cbar $\bar{C}$
 138     mcbar $\bar{mc}$
 139     xbar $\bar{x}$
 140     Ibar $\bar{I}$
 141     Kbar $\bar{K}$
 142     Qbar $\bar{Q}$
 143     rbar $\bar{r}$
 144     rkbar $\bar{r^K}$
 145     Ktilbar $\bar{\tilde{K}}$
 146     Ybar $\bar{Y}$
 147     ULbar $\bar{U^L}$
 148     UCbar $\bar{U^C}$
 149     H1bar $\bar{\mathcal{H}_1}$
 150     H2bar $\bar{\mathcal{H}_2}$
 151     multbar $\bar{\lambda}$
 152     pbar $\bar{p}$
 153     Q1bar $\bar{\mathcal{Q}_1}$
 154     Q2bar $\bar{\mathcal{Q}_2}$
 155     Dpbar $\bar{D_p}$
 156     chiKtilL $\bar{\chi^{\tilde{K}L}}$
 157     chiYL $\bar{\chi^{YL}}$
 158     chiGL $\bar{\chi^{GL}}$
 159     chiCL $\bar{\chi^{CL}}$
 160 ;
 161 
 162 
 163 
 164 // deep parameters
 165 gammap      = 1-0.477 ;
 166 gammaw      = 1-0.728 ;
 167 xiw         = .756 ;
 168 xip         = .909 ;
 169 lambdaw     = .5 ;
 170 lambdap     = .3 ;
 171 nu          = (1+lambdaw)/lambdaw ;
 172 alpha       = .3 ;
 173 sigmal      = 1.26 ;
 174 sigmac      = 1.6 ;
 175 eps         = (1+lambdap)/lambdap ;
 176 teta        = .025 ;
 177 iphi        = 4 ;
 178 beta        = .99446327837150;
 179 h           = .55 ;
 180 gY          = 0.21468834761075; // calibrated
 181 mhu         = 1/(eps-1);
 182 
 183 // Taylor's rule
 184 rho         = .8 ;
 185 rpi         = 1.5 ;
 186 ry          = .1 ;
 187 rdeltapi    = .5 ;
 188 rdeltay     = .5 ;
 189 
 190 // shocks parameters
 191 rhor        = .8 ;
 192 rhow        = .8 ;
 193 rhol        = .0 ;
 194 rhok        = .8 ;
 195 rhoc        = .8 ;
 196 rhoy        = .0;//.8 ;
 197 rhog        = .8 ;
 198 rhopi       = .8 ;
 199 zetaa       = .8 ;
 200 zetab1      = .8 ;
 201 zetai       = 0 ; //.8 ;
 202 zetal       = .8 ; //.8 ;
 203 
 204 // steady state values
 205 
 206 taucbar = 1.129202;
 207 taukbar = 1;
 208 taulbar = 1.298528;
 209 taurbar = 1;
 210 tauwbar = 0.870431;
 211 tauybar = 1;
 212 
 213 pibar       = 1.00580514587360;
 214 xbar        = 1 ;
 215 Qbar        = 1 ;
 216 rbar 	    = 1/beta;
 217 zbar	    = .817183;
 218 Gdpsi	    = zbar/(rbar + teta - 1);  
 219 rkbar       = 1/(Gdpsi*taukbar) ;
 220 mcbar       = (eps - 1)/eps*tauybar ;
 221 wbar        = (mcbar*(alpha/(taurbar*rkbar))^alpha)^(1/(1-alpha))*(1-alpha)/taulbar ;
 222 chiKtilL    = alpha/(1-alpha)*taulbar*wbar/(taurbar*rkbar) ;
 223 chiYL       = 1/(1+mhu)*(chiKtilL)^alpha ;
 224 chiGL       = gY*chiYL ;
 225 chiCL       = chiYL - teta/zbar*chiKtilL - chiGL ;
 226 Lbar        = (wbar*(nu-1)/nu*tauwbar/taucbar*(chiCL*(1-h))^(-sigmac))^(1/(sigmac+sigmal)) ;
 227 Cbar        = Lbar*chiCL ;
 228 Ktilbar     = Lbar*chiKtilL ;
 229 Ybar        = Lbar*chiYL ;
 230 Gbar        = Lbar*chiGL ;
 231 Kbar        = Ktilbar/zbar ;
 232 Ibar        = teta*Kbar ;
 233 FixedCost   = mhu*Ybar ;
 234 
 235 ULbar      = -Lbar^sigmal ;
 236 UCbar      = ((1-h)*Cbar)^(-sigmac) ;
 237 H1bar      = -(Lbar)^(sigmal+1)/(1-beta*xiw) ;
 238 H2bar      = ((1-h)*Cbar)^(-sigmac)*tauwbar*Lbar/(1-beta*xiw)/taucbar/pibar ;
 239 multbar    = ((1-h)*Cbar)^(-sigmac)/taucbar ;
 240 pbar       = 1 ;
 241 Q1bar      = ((1-h)*Cbar)^(-sigmac)/taucbar*Ybar*tauybar*(eps-1)/eps/(1-beta*xip) ;
 242 Q2bar      = (1-h)^(-sigmac)*Cbar^(-sigmac)/taucbar*Ybar*tauybar/(1-beta*xip) ;
 243 Dpbar      = 1 ;
 244 Rbar       = pibar/beta ;
 245 
 246 
 247 
 248 model;
 249 	// FLEXIBLE PRICE MODEL::
 250 
 251 	// Wages:
 252 	wstar = nu/(nu - 1)*tauc/tauw*epsl*Lstar^sigmal/
 253     	(Cstar-h*Cstar(-1))^(-sigmac) ;										//Equ 1.
 254 
 255 	// Prices:
 256 	mcstar = (eps-1)/eps*tauy;										//Equ 2.
 257 
 258 	// Capital accumulation:
 259 	xstar = epsi*Istar/Istar(-1);							                        //Equ 3.
 260 	Kstar = (1-teta)*Kstar(-1) + (1 - (xstar-1)^2/2*iphi)*Istar;                                            //Equ 4.
 261 
 262 	// Investissement equation:
 263 	Qstar*(1-(xstar-1)^2/2*iphi-xstar*(xstar-1)*iphi) + 
 264 			Qstar(1)/rstar*xstar(1)*Istar(1)/Istar*(xstar(1)-1)*iphi = 1;                           //Equ 5.
 265 
 266 	// Tobin's Q:
 267 	Qstar = 1/rstar*(tauk(1)*rkstar(1)*zstar(1) - 
 268     	      (exp((zstar(1)-zbar)/Gdpsi)-1) + Qstar(1)*(1-teta));						//Equ 6.
 269 
 270 	// IS curve:
 271 	tauc(1)*epsb*(Cstar - h*Cstar(-1))^(-sigmac) = 
 272     		beta*rstar*tauc*epsb(1)*(Cstar(+1)-h*Cstar)^(-sigmac);				                //Equ 7.
 273 
 274 	// Prices frontier:
 275 	Ktilstar/Lstar = alpha/(1-alpha)*taul*wstar/(taur*rkstar);		                                //Equ 8.
 276 
 277 	// Goods market clearing
 278 	epsa*Ktilstar^alpha*Lstar^(1-alpha) - FixedCost = 
 279     		Cstar + Istar + G + (exp((zstar-zbar)/Gdpsi)-1)*Kstar(-1);                                      //Equ 9.
 280 
 281 	// CUR
 282 	tauk*rkstar = exp((zstar-zbar)/Gdpsi)/Gdpsi;								//Equ 10.
 283 
 284 	// Aggregate production function
 285 	Ystar = epsa*Ktilstar^alpha*Lstar^(1-alpha) - FixedCost ;	                                        //Equ 11.
 286 
 287 	// Marginal cost
 288 	mcstar = (taur*rkstar/alpha)^alpha*(taul*wstar/(1-alpha))^(1-alpha)/epsa;		                //Equ 12.
 289 
 290 	// Productive capital stock										
 291 	Ktilstar = zstar*Kstar(-1) ;										//Equ 13.
 292 
 293 	// Governement
 294 	G = Gbar^(1-rhog)*G(-1)^rhog*exp(e_g);									//Equ 14.
 295 
 296 
 297 
 298 	// NON-FLEXIBLE PRICE MODEL::
 299 	
 300 	// Wages:
 301 	UL = -epsb*epsl*ptitl^sigmal;										//Equ 15.
 302 	UC = epsb*(C-h*C(-1))^(-sigmac); 									//Equ 16.
 303 	pi*wtild = nu/(1-nu)*H1/H2;										//Equ 17.
 304 	H1 = UL*ptitl+beta*xiw*H1(1); 										//Equ 18.
 305 	H2 = UC*tauw*ptitl/tauc/pi+beta*xiw*pitarget(1)^gammaw*pi^(-gammaw)*H2(1); 				//Equ 19.
 306 	w^(1-nu) = (1-xiw)*wtild^(1-nu)+ xiw*(pitarget^gammaw*pi(-1)^(1-gammaw)*w(-1)/pi)^(1-nu);               //Equ 20.
 307 	ptitl = (wtild/w)^(-(1+lambdaw)/lambdaw)*L;             						//Equ 21.
 308 
 309 	// Prices:
 310 	mult = UC/tauc;												//Equ 22.
 311 	pi/pi(-1)^(1-gammap)/pitarget^gammap*p = eps/(eps-1)*Q1/Q2;          					//Equ 23.
 312 	Q1 = pi^eps*pi(-1)^(-(1-gammap)*eps)*mult*Y*mc*pitarget^(-eps*gammap)+ 
 313 	   beta*xip*pi^eps*pi(-1)^(-(1-gammap)*eps)*pitarget^(-gammap*eps)*Q1(1);				//Equ 24.
 314 	Q2 = pi^(eps-1)*pi(-1)^(-(1-gammap)*(eps-1))*mult*tauy*Y*pitarget^(gammap*(1-eps))
 315 	  + beta*xip*pi^(eps-1)*pi(-1)^(-(1-gammap)*(eps-1))*pitarget^(-gammap*(eps-1))*Q2(1);                  //Equ 25.
 316 	(1-xip)*p^(1-eps) + xip*(pitarget^gammap*pi(-1)^(1-gammap)/pi)^(1-eps) = 1;                             //Equ 26.
 317 
 318 	// Capital accumulation:
 319 	x = epsi*I/I(-1) ;											//Equ 27.
 320 	K = (1-teta)*K(-1) + (1 - (x-1)^2/2*iphi)*I;								//Equ 28.
 321 
 322 	// Investissement equation:
 323 	Q*(1-(x-1)^2/2*iphi-x*(x-1)*iphi) + beta*mult(1)/mult*Q(1)*x(1)*I(1)/I*(x(1)-1)*iphi = 1;               //Equ 29.
 324 
 325 	// Tobin's Q:
 326 	Q/exp(n_q) = beta*mult(1)/mult*(tauk(1)*rk(1)*z(1)-(exp((z(1)-zbar)/Gdpsi)-1) + Q(+1)*(1-teta));        //Equ 30.
 327 
 328 	// IS curve:
 329 	tauc(1)*epsb*(C - h*C(-1))^(-sigmac) = 
 330 				  beta*R/pi(1)*tauc*epsb(1)*(C(+1)-h*C)^(-sigmac);		                //Equ 31.
 331 
 332 	// Prices frontier:
 333 	Ktil/L = alpha/(1-alpha)*taul*w/(taur*rk) ;		                                                //Equ 32.
 334 
 335 	// Goods market clearing:
 336 	1/Dp*(epsa*Ktil^alpha*L^(1-alpha) - FixedCost) = C + I + G + (exp((z-zbar)/Gdpsi)-1)*K(-1);             //Equ 33.
 337 	
 338 	Dp = (1-xip)*p^(-eps)+xip*(pitarget^gammap*pi(-1)^(1-gammap)/pi)^(-eps)*Dp(-1);		                //Equ 34.
 339 
 340 	// CUR:
 341 	tauk*rk = exp((z-zbar)/Gdpsi)/Gdpsi ;									//Equ 35.
 342 
 343 	// Aggregate production function:
 344 	Y*Dp = epsa*Ktil^alpha*L^(1-alpha) - FixedCost ;							//Equ 36.
 345 
 346 	// Marginal cost:
 347 	mc = (taur*rk/alpha)^alpha*(taul*w/(1-alpha))^(1-alpha)/epsa;			                        //Equ 37.
 348 
 349 	// Productive capital stock:
 350 	Ktil = z*K(-1) ;						                                        //Equ 38.
 351 
 352 	// Taylor's rule:
 353     	R = Rbar^(1-rho)*R(-1)^rho*((pi(-1)/pitarget)^rpi*(Y/Ystar)^ry)^(1-rho)
 354   	  *(pi/pi(-1)*pitarget(-1)/pitarget)^rdeltapi * (Y/Y(-1)*Ystar(-1)/Ystar)^rdeltay
 355 	  *exp(e_taylor);											//Equ 39.
 356 
 357 
 358 	// Real interest rate:
 359 	r = R/pi(1) ;						                                                //Equ 40.
 360 
 361 
 362 	// Shocks:
 363     	tauc = taucbar^(1-rhoc)*tauc(-1)^rhoc*exp(e_c) ;							//Equ 41.
 364     	taul = taulbar^(1-rhol)*taul(-1)^rhol*exp(e_l) ;                 					//Equ 42.
 365     	tauw = tauwbar^(1-rhow)*tauw(-1)^rhow*exp(e_w) ;                 					//Equ 43.
 366     	taur = taurbar^(1-rhor)*taur(-1)^rhor*exp(e_r) ;                 					//Equ 44.
 367     	tauy = tauybar^(1-rhoy)*tauy(-1)^rhoy*exp(e_y) ;                 					//Equ 45.
 368     	tauk = taukbar^(1-rhok)*tauk(-1)^rhok*exp(e_k) ;                 					//Equ 46.
 369     	epsa = epsa(-1)^zetaa*exp(n_a);		                      						//Equ 47.
 370     	epsl = epsl(-1)^zetal*exp(n_l);                                 			        	//Equ 48.
 371     	epsb = epsb(-1)^zetab1*exp(n_b);		                             			        //Equ 49.
 372     	epsi = epsi(-1)^zetai*exp(n_i);                                          			        //Equ 50.
 373 
 374 	pitarget = pibar^(1-rhopi)*pitarget(-1)^rhopi*exp(e_pi);						//Equ 51.
 375 
 376 end ;
 377 
 378 initval;
 379 wstar       = wbar;
 380 Lstar       = Lbar ;
 381 Cstar       = Cbar ;
 382 mcstar      = mcbar ;
 383 xstar       = xbar ;
 384 Istar       = Ibar ;
 385 Kstar       = Kbar ;
 386 Qstar       = Qbar ;
 387 rstar       = rbar ;
 388 rkstar      = rkbar ;
 389 zstar       = zbar ;
 390 Ktilstar    = Ktilbar ;
 391 Ystar       = Ybar ;
 392 
 393 w           = wbar ;
 394 L           = Lbar ;
 395 C           = Cbar ;
 396 mc          = mcbar ;
 397 x           = xbar ;
 398 I           = Ibar ;
 399 K           = Kbar ;
 400 Q           = Qbar ;
 401 r           = rbar ;
 402 rk          = rkbar ;
 403 z           = zbar ;
 404 Ktil        = Ktilbar ;
 405 Y           = Ybar ;
 406 
 407 UL          = ULbar ;
 408 UC          = UCbar ;
 409 ptitl       = Lbar ;
 410 pi          = pibar ;
 411 wtild       = wbar ;
 412 H1          = H1bar ;
 413 H2          = H2bar ;
 414 pitarget    = pibar ;
 415 mult        = multbar ;
 416 p           = pbar ;
 417 Q1          = Q1bar ;
 418 Q2          = Q2bar ;
 419 Dp          = Dpbar ;
 420 
 421 R           = Rbar ;
 422 G           = Gbar ;
 423 
 424 taur        = taurbar ; 
 425 tauw        = tauwbar ;
 426 taul        = taulbar ;
 427 tauk        = taukbar ;
 428 tauc        = taucbar ;
 429 tauy        = tauybar ;
 430 
 431 epsa        = 1 ;
 432 epsb        = 1 ;
 433 epsi        = 1 ;
 434 epsl        = 1 ;
 435 
 436 end;
 437 
 438 //check;
 439 //return;
 440 
 441 //resid(1);
 442 //steady;
 443 
 444 
 445 
 446 shocks;
 447   var e_c; stderr 0.1;
 448   var e_l; stderr 0.1;
 449   var e_g; stderr 0.1;
 450   var e_w; stderr 0.1;
 451   var e_r; stderr 0.1;
 452   var e_y; stderr 0.1;
 453   var e_k; stderr 0.1;
 454   var n_a; stderr 0.1;
 455   var n_l; stderr 0.1;
 456   var n_b; stderr 0.1;
 457   var n_i; stderr 0.1;
 458   var n_q; stderr 0.1;
 459   var e_pi; stderr 0.1;
 460   var e_taylor; stderr 0.1;
 461 end;
 462 
 463 estimated_params;
 464 
 465 	stderr e_taylor,UNIFORM_PDF,,,0,1;//,INV_GAMMA_PDF, 1,inf;
 466     stderr e_pi,UNIFORM_PDF,,,0,1;//INV_GAMMA_PDF, 0.05,inf;
 467 	
 468 	//$ stderr e_y,UNIFORM_PDF,,,0,10;//INV_GAMMA_PDF, 0.15,inf;
 469 	//$ stderr e_c,UNIFORM_PDF, , ,0,5;
 470     	//$ stderr e_l,UNIFORM_PDF,,,0,10;//INV_GAMMA_PDF, 0.3,inf;
 471     	//$ stderr e_w,UNIFORM_PDF, , ,0,5;
 472     	//$ stderr e_r,UNIFORM_PDF, , ,0,5;
 473     	//$ stderr e_k,UNIFORM_PDF, , ,0,5;
 474     	stderr e_g,UNIFORM_PDF,,,0,5;//INV_GAMMA_PDF, 0.3,inf;
 475 
 476     	stderr n_a,UNIFORM_PDF,,,0,5;//INV_GAMMA_PDF, 0.6,inf;
 477     	stderr n_l,UNIFORM_PDF,,,0,40;//INV_GAMMA_PDF, 1, 2; //UNIFORM_PDF,,,0,15;
 478     	stderr n_b,UNIFORM_PDF,,,0,10;//INV_GAMMA_PDF, .2, 2;//INV_GAMMA_PDF, 0.3,inf;
 479     	stderr n_i,UNIFORM_PDF,,,0,5;//INV_GAMMA_PDF, 0.15,inf;
 480 	//$ stderr n_q,UNIFORM_PDF, , ,0,10;//INV_GAMMA_PDF, 0.6,inf;
 481 	
 482     	sigmac,NORMAL_PDF, 1.5, 0.5 ; //UNIFORM_PDF,,,1,5;
 483     	sigmal,NORMAL_PDF, 3.5, 0.5 ;//UNIFORM_PDF,,,0,10; 
 484     	
 485         xiw,BETA_PDF, 0.75, 0.05;//UNIFORM_PDF,,,0,1;
 486     	xip,BETA_PDF, 0.75, 0.05;//UNIFORM_PDF,,,0,1;
 487     	
 488         gammaw,BETA_PDF, 0.25, 0.15;//UNIFORM_PDF,,,0,1;
 489     	gammap,BETA_PDF, 0.25, 0.15;//UNIFORM_PDF,,,0,1;
 490     	
 491         iphi,NORMAL_PDF, 5.5, 1.5;//UNIFORM_PDF,,,1,10;
 492     	
 493         h,BETA_PDF, 0.50, 0.15;//UNIFORM_PDF,,,0,1;
 494     	
 495         rho,BETA_PDF, 0.8, 0.05;// UNIFORM_PDF,,,0,1;
 496     	rpi,NORMAL_PDF, 1.7, 0.1;//UNIFORM_PDF,,,1,2; 
 497     	ry,NORMAL_PDF, 0.125, .05; //UNIFORM_PDF,,,-0.1,1; 
 498     	rdeltapi,NORMAL_PDF, 0.3, 0.1; //UNIFORM_PDF,,,-1,1; 
 499     	rdeltay,NORMAL_PDF, 0.0625, 0.05; //UNIFORM_PDF,,,-1,1;
 500 
 501 	//$ rhor, BETA_PDF,0.8,0.1;
 502 	//$ rhow, BETA_PDF,0.8,0.1;
 503 	//$ rhol, UNIFORM_PDF,,,-.01,1;//BETA_PDF,0.4,0.15;
 504 	//$ rhok, BETA_PDF,0.8,0.1;
 505 	//$ rhoc, BETA_PDF,0.8,0.1;
 506 	//$ rhoy, UNIFORM_PDF,,,-.01,1;// BETA_PDF,0.4,0.15;
 507 	rhog, BETA_PDF,0.8,0.1;// UNIFORM_PDF,,,0,1;
 508 	rhopi, BETA_PDF,0.8,0.1; // UNIFORM_PDF,,,0,1;
 509 	zetaa, UNIFORM_PDF,,,0,1;//BETA_PDF,0.8,0.15;
 510 	zetab1,BETA_PDF,0.6,0.1; //UNIFORM_PDF,,,0,1;
 511 	//$ zetab2, NORMAL_PDF,.0,0.5;
 512 	//zetai, UNIFORM_PDF,,,0,1;//, BETA_PDF,0.2,0.15;
 513 	zetal, UNIFORM_PDF,,,0,1;// BETA_PDF,0.7,0.15;
 514     	
 515 end;
 516 
 517 
 518 estimated_params_init;
 519 	stderr e_taylor,0.08;
 520     stderr e_pi,0.22;
 521 	
 522 	//$ stderr e_y,.01;
 523 	//$ stderr e_c,0.1;
 524     	//$ stderr e_l,.1;
 525     	//$ stderr e_w,0.1;
 526     	//$ stderr e_r,0.1;
 527     	//$ stderr e_k,0.1;
 528     	stderr e_g,1.82;
 529 
 530     	stderr n_a,0.59;
 531     	stderr n_l,2.3;
 532     	stderr n_b,1.86;
 533     	stderr n_i,1.5;
 534 	//$ stderr n_q,3.2;
 535 
 536 	sigmac, 1.95;
 537 	sigmal, 2.75;
 538 	xiw, 0.4;
 539 	xip,  0.9;
 540 	gammaw, 0.83;
 541 	gammap, 0.96;
 542 	iphi, 5.63;
 543 	h, 0.5;
 544 	rho, 0.8;
 545 	rpi, 1.50;
 546 	ry, 0.22;
 547 	rdeltapi, -.06;
 548 	rdeltay, 0.03;
 549 
 550 	//$ rhor, 0.8;
 551 	//$ rhow, 0.8;
 552 	//$ rhol, 0.8;
 553 	//$ rhok, 0.8;
 554 	//$ rhoc, 0.8;
 555 	//$ rhoy, 0.8;
 556 	rhog, 0.96;
 557 	rhopi, 0.76;
 558 	zetaa, 0.79;
 559 	zetab1, 0.7;
 560 	//zetai, 0.1;
 561 	zetal, 0.9;
 562 
 563 end;
 564 
 565 
 566 varobs  Y C I pi R z w;
 567 
 568 options_.noconstant = 1;
 569 
 570 options_.logdata = 1;
 571 
 572 
 573 estimation(irf=0,datafile=MakeData3,first_obs=46,loglinear,prefilter=1,mode_compute=0,mode_file = acdm_mode,mh_replic=0);
 574 //stoch_simul(order=1) pi C w Dp;
 575 options_.forecast=8;
 576 bvar_forecast 4 ;

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