% Stochastic growth model
% u(c) = lnc, f(k) = exp(z)*k^alpha, z = rho*z(-1) + e

var	k, c, y, z;
varexo	e;

parameters alpha, beta, delta, rho;

alpha = 0.36;
beta  = 0.98;
delta = 0.2;
rho   = 1;

model(linear);
1/c = beta * 1/c(+1) * (exp(z(+1)) * alpha * k^(alpha-1) + 1 - delta);
y = exp(z) * k(-1)^alpha;
k = y - c + (1 - delta) * k(-1);
z = rho * z(-1) + e;
end;

initval;
k = 0.1;
c = 1;
y = 1;
z = 0;
e = 0;
end;

steady;

shocks;
var e;
stderr 0.05;
end;

stoch_simul(order=1, periods=200, irf=50); //Note: if irf=0 no impulse response function is plotted

rplot c k y z; //Note: it plots the series all connected.