var  y c t w l la u v pi m mu ep chi a ;
 
varexo ea echi emu eep;

parameters beta sigma xi delta b kappa alpha psi rhol eta rhoa rhomu rhochi rhoep sigm siga sigz;

beta = .99;
sigma = 2;
xi = .4;
delta = .025;
b = .4;
kappa = .04;
psi   =  1 ;
alpha = .7;
rhol = .9;
eta = .5;
rhoa = .9;
rhochi = .9;
rhomu = .9;
rhoep  = .9;
sigmu = 0.1;
siga = 0.1;
sigchi = 0.1;
sigep  =0;

model;

c+t=w*l+u*b+pi;

c^(-sigma)=la;

m=mu*u^xi*v^(1-xi);

u=1-l;

y=a*l^alpha;

l=rhol*(l(-1)+m(-1));

kappa*v^(psi-1)/(mu*(u/v)^xi)=rhol*beta*(la(+1)/la)*(alpha*(y(+1)/l(+1))*(ep(+1)/1+ep(+1))-w(+1)+kappa*v(+1)^(psi-1)/(mu(+1)*(u(+1)/v(+1))^xi));

w=eta*(alpha*(y/l)*(ep/1+ep)+kappa*v^(psi-1)*(v/u))+(1-eta)*(b+chi*c^sigma);

t=u*b;

c+(kappa*v^psi)/psi=y;

log(mu)=rhomu*log(mu(-1))+ emu;  

log(a)=rhoa*log(a(-1))+ ea; 

log(chi)=rhochi*log(chi(-1))+ echi; 

log(ep)=rhoep*log(ep(-1))+ eep; 


end;


initval;


y 	=	 0.958463;
c 	=	 0.952323;
t   =    0.0235222;
pi  =     -0.382765;
la  =    1.10263;
w 	=	 1.4185;
l 	=	  0.941194;
u 	=	 0.0588056;
v 	=	 0.1535;
mu 	=	 1;
ep 	=	 1;
a 	=	 1;
chi =    1;


end;


steady;
check;

shocks;
var ea = siga^2;
var eep = sigep^2;
var emu = sigmu^2;
var echi = sigchi^2;
end;



estimated_params;
b, uniform_pdf,  ,  , 0, 1;
alpha, beta_pdf, 0.7, 0.15;
kappa,  gamma_pdf, 0.045, 0.01;
eta, beta_pdf, .35, 0.25;
%rhol, beta_pdf, 0.84, 0.02;
%sigm, inv_gamma_pdf, 0.01, 1;
%siga, inv_gamma_pdf, 0.01, 1;
%sigz, inv_gamma_pdf, 0.01, 1;
end;

varobs y  u  w  v;

estimation(datafile=trial, order=1, mh_replic =60000,  mh_nblocks =7,  mode_compute=6);