var c,b, k,i,l1,l2,k1,k2,x1,x2,d1,d2,d, p1, p2,p, w1,w2,r,ca,nx1,nx2,sx,sm;
varexo tau;

parameters gamma,beta, alpha1,alpha2, psib,psi,lambda,rss,wss,ls,cbar, p1s,p2s, ps,a2;

gamma=2;
beta=0.99;
alpha1=0.25;
alpha2=0.75;
psib=0.0007;
psi=0.1;
lambda=4;
sx0=0.05;
rss=1/beta-1;
wss=(1/rss^(0.5*(alpha1+alpha2)))^(1/(1-0.5*(alpha1+alpha2)));
ls=0.2479;
p1s=wss^(1-alpha1)*rss^alpha1;
p2s=wss^(1-alpha2)*rss^alpha2;
ps=p1s^0.5*(p2s*(1+0.2))^0.5;
cbar=wss*ls/(ps*(1-0.5*(alpha1+alpha2)+(alpha2-alpha1)*sx0));

a2=(1/(1+0.2))^(1/(1-alpha2));
ls=0.2479;

model;
k=k(-1)+i;
p1=p1s;
p2=p2s*(1+tau);
p=(1+tau)^0.5;
c^(-gamma)/p=beta*(c/cbar)^(-psi)*c(+1)^(-gamma)/p(+1)*(1+r(+1));
c^(-gamma)/p*(1+psib*p*b)=beta*(c/cbar)^(-psi)*c(+1)^(-gamma)/p(+1)*(1+rss);
w1-p*lambda*(l1-l1(-1))+1/(1+r)*p(+1)*lambda*(l1(+1)-l1)=w2-p*lambda*(l2-l2(-1))+1/(1+r)*p(+1)*lambda*(l2(+1)-l2);
//w1-p*lambda*(l1-0.1948)=w2-p*lambda*(l2-0.0531);
w1^(1-alpha1)*r^alpha1=p1s;
(w2/a2)^(1-alpha2)*r^alpha2=p2s*(1+tau);
r*k1=alpha1*p1*x1;
w1*l1=(1-alpha1)*p1*x1;
r*k2=alpha2*p2*x2;
w2*l2=(1-alpha2)*p2*x2;
p1*d1=0.5*p*d;
p2*d2=0.5*p*d;
k(-1)=k1+k2;
l1+l2=ls;
d=c+i/p+1/2*lambda*(l1-l1(-1))^2+1/2*lambda*(l2-l2(-1))^2+1/2*psib*b^2;
//d=c+i/p+1/2*lambda*(l1-0.1948)^2+1/2*lambda*(l2-0.0531)^2+1/2*psib*b^2;
ca=b-b(-1);
ca=p1*(x1-d1)+p2*(x2-d2)+rss*b(-1);
nx1=(x1-d1)*p1;
nx2=(x2-d2)*p2;
sx=nx1/(p1*x1+p2*x2);
sm=nx2/(p1*x1+p2*x2);
end;

initval;
r=0.0101;
w1=99;
w2=99;
i=0;
p1=9.9499;
p2=0.1206;
p=1.0954;
c=42.6740;
b=0.0000;
k=2198.3000;
k1=636.3400;
k2=1561.9;
l1=0.1948;
l2=0.0531;
x1=2.5840;
x2=174.4200; 
d=42.674;
d1=2.3491;
d2=193.8; 
nx1=2.3373; 
nx2=-2.3373;
ca=0.0000;
sx=0.0500;
sm=-0.0500;
tau=0.2;
end;

steady;

endval;
b=3.4264;
c=41.6637;
ca=0;
d=41.6678;
d1=2.09389;
d2=207.295;
i=0;
k=1919.38;
k1=1072.1;
k2=847.277;
l1=0.227889;
l2=0.0200111;
nx1=12.1185;
nx2=-12.1532;
p=1;
p1=9.94987;
p2=0.100504;
r=0.0076841;
sm=-0.29191;
sx=0.291079;
w1=108.449;
w2=108.449;
x1=3.31185;
x2=86.3723;
tau=0;
end;
steady;


simul(periods=100);

figure
subplot(3,4,1)
plot(c(1:102)) 
title('C')
subplot(3,4,2)
plot(k(1:102))
title('K')
subplot(3,4,3)
plot(x1(1:102))
title('X1')
subplot(3,4,4)
plot(x2(1:102))
title('X2')

subplot(3,4,5)
plot(k1(1:102))
title('K1')

subplot(3,4,6)
plot(k2(1:102))
title('K2')

subplot(3,4,7)
plot(l1(1:102))
title('L1')

subplot(3,4,8)
plot(l2(1:102))
title('L2')

subplot(3,4,9)
plot(sx(1:102))
title('sx')

subplot(3,4,10)
plot(sm(1:102))
title('sm')

subplot(3,4,11)
plot(ca(1:102))
title('CA')

subplot(3,4,12)
plot(b(1:102))
title('B')