//Dynare code for Bernanke, Gertler and Gilchrist "The financial Accelerator In A Quantitative Business Cycle Framework"
//Hewitt Zhang SUFE, 2011


var y c i g ce r n rk q k x a h pi rn;

varexo e_rn e_g e_a;

parameters C_Y I_Y G_Y Ce_Y nu epsilon phi alpha omega eta kappa beta delta R K_N rho rho_g rho_a sigma Y_N X theta gamma;

C_Y=0.5;
I_Y=0.2;
G_Y=0.2;
Ce_Y=0.1;
nu=0.85;
epsilon=(1-delta)/((1-delta) + ((alpha/X)*(Y_N/K_N)));
X=1.1;
Y_N=0.157;
phi=0.25;
alpha=0.35;
omega=0.98;
eta=3;
kappa=((1-theta)/theta)*(1-theta*beta);
beta=0.99;
theta=0.75;
delta=0.025;
gamma=0.9;
R=1/beta;
K_N=2;
rho=0.9;
sigma=0.11;
rho_g=0.95;
rho_a=0.95;

model(linear);
y=C_Y*c+I_Y*y+G_Y*g+Ce_Y*ce;
c=-r+c(+1);
ce=n;
rk(+1)-r=-nu*(n-q-k);
rk=(1-epsilon)*(y-k(-1)-x)+epsilon*q-q(-1);
q=phi*(i-k(-1));
y=a+alpha*k(-1)+(1-alpha)*omega*h;
y-h-x-c=(eta^(-1))*h;
pi=kappa*(-x)+beta*pi(+1);
k=delta*i+(1-delta)*k(-1);
n=gamma*R*K_N*(rk-r(-1))+r(-1)+n(-1);
rn=rho*rn(-1)+sigma*pi(-1)+e_rn;
g=rho_g*g(-1)+e_g;
a=rho_a*a(-1)+e_a;
rn=r+pi(+1);
end;


steady;
check;

shocks;
%var e_g; stderr 0.1;
%var e_a; stderr 0.1;
var e_rn; stderr 1.0;
end;

stoch_simul(periods=2100) ;