var c_HU , lambdaU , wU , lU , hU , mU, piU, qU, rU,k_HU,espU,R_BU,R_HU,R_EU,iU,XiU,aU,nU,kappaU,dU,yU,kU,k_EU,k_BU,epsilon_cU , epsilon_mU ,epsilon_AU,espilon_RU,espilon_iU; varexo epsilon_ecU ,epsilon_emU ,epsilon_eAU,espilon_eRU,espilon_eiU; parameters hb, beta,y, rhoc, sigma, h, epsilon_m,Pi,m,nu,lambda,pi,q,r,u, k_H, delta,alpha,b,R_H,R,PH,PL,i,Xi,a,Mu,kappa,d,R_B,R_E ,phi_R,phi_pi,phi_y,k_E,k_B,tau_e,tau_b,n,c_H,epsilon_i,k,phi,rho_e,rho_w,phi_w,rhom,rhoi,rhoA,rhoR; //calibration hb=0.65; beta=0.99; //eta=1.9; rhoc=0.396; sigma=3; h=0.214; Pi=0.003; nu=1; pi=1.079; delta=0.025; alpha=0.36; b=0.16; R=1.21; PH=0.99; PL=0.75; Mu=0.025; kappa=0.2; phi_R=0.77; phi_pi=2.01; phi_y=0.35; tau_e=0.78; tau_b=0.72; phi=6; rho_e=0.6; rho_w=0.64; phi_w=24; rhom=0.7206; rhoi=0.543; rhoA=0.321; rhoR=0.945; u=0.2; // steady-state value of endogenous variable y=1000; q=1.1; i=268; m=4000; k=657; epsilon_i=0.52; R_E=b/(PH-PL); R_B=Mu/((PH-PL)*q); R_H=R-Mu/((PH-PL)*q)-b/(PH-PL); a=500; d=620; k_E=321; k_B=123; k_H =k - k_E - k_B; r=0.7; c_H=y-i; lambda=1.2524;//(1-beta*b)/(c_H-b*c_H); epsilon_m=0;//(lambda*(1-1/(1+r)*m^nu))/Pi; Xi=0.32; n=a+d-(1+Mu)*i; model(linear); hb*beta*c_HU(+1)-(beta*hb^2)*c_HU+hb*c_HU(-1)=(1-hb)*(1-beta*hb)*lambdaU-(1-hb)*(1-beta*hb*rhoc)*epsilon_cU; lambdaU+wU+sigma*lU=0; lU=(h/(1-h))*hU; epsilon_m*Pi*pi*(epsilon_mU+piU(+1))=lambda*(m^nu)*pi*(lambdaU+nu*mU+piU)-lambda*(m^nu)*(lambdaU(+1)+nu*mU); q*(lambdaU(-1)+qU)= beta*q*(1-delta)*(lambdaU+qU(+1))+beta*r*u*(lambdaU+rU(+1)); wU=epsilon_AU+alpha*k_HU-alpha*hU; rU=epsilon_AU+(alpha-1)*k_HU-(alpha-1)*hU ; espU=(1-alpha)*wU+alpha*rU-epsilon_AU-lambdaU ; R_BU+qU=0; R_H*R_HU+R_H*qU=qU*R-qU*b/(PH-PL); Xi*XiU=-(R-b/(PH-PL))*PH*(q/pi)*qU+((Mu/(PH-PL))*PH-(R-b/(PH-PL))*PH*(q/pi))*lambdaU+((Mu/PH-PL)*PH+(R-b/(PH-PL))*PH*(q/pi))*lambdaU(-1)+(R-b/(PH-PL))*PH*(q/pi)*piU(+1); kappa*a*(kappaU+aU)+kappa*d*(kappaU+dU)=a*aU ; a*aU+d*dU-Mu*i*iU=i*iU-nU; rU=phi_pi*piU+ phi_R*mU+ phi_y*yU+ espilon_eRU; k_E*k_EU=tau_e*PH*R_E*i*(R_EU+iU); k_B*k_BU=tau_b*PH*R_B*i*(R_BU+iU); n*nU=tau_e*PH*r*R_E*i*(rU(+1)+R_EU+iU)+(1-delta)*tau_e*PH*q*R_E*i*(qU(+1)+R_EU+iU); a*aU=tau_b*PH*r*R_B*i*(rU(+1)+R_BU+iU)+(1-delta)*tau_b*PH*q*R_B*i*(qU(+1)+R_BU+iU); k*kU(+1)=(1-delta)*k*kU(-1)+PH*R*i*epsilon_i*(espilon_eiU+iU); k*kU=k_H*k_HU+k_E*k_EU+k_B*k_BU; yU=alpha*kU+(1-alpha)*hU+(1-alpha)*epsilon_AU; y*yU=c_H*c_HU+(1+Mu)*i*iU; piU=beta*piU(+1)+((1-beta*phi)*(1-phi)/phi)*epsilon_AU; wU=beta*wU(+1)/(1+beta)+wU(-1)/(1+beta)+piU(+1)*beta/(1-beta)-(phi_w-1+beta)*piU/((1+beta)*(phi_w-1))+(1-beta*rho_w)*(1-rho_w)*(wU-sigma*lU-nu*Pi*mU-epsilon_mU-(c_HU-hb*c_HU(-1))/(1-hb))/((1+beta)*(1+phi_w)*rho_w); epsilon_cU=rhoc*epsilon_cU(-1)+epsilon_ecU; //c epsilon_mU=rhom*epsilon_mU(-1)+epsilon_emU; //m epsilon_AU=rhoA*epsilon_AU(-1)+epsilon_eAU; //y espilon_RU=rhoR*espilon_RU(-1)+espilon_eRU; //r espilon_iU=rhoi*espilon_iU(-1)+espilon_eiU; //i end; resid(1); check; steady; //initval; //end; shocks; var epsilon_ecU; stderr 0.027 ;//gerali2010 var epsilon_emU; stderr 0.0103 ;//Christensen var epsilon_eAU; stderr 0.0395 ;//huang var espilon_eRU; stderr 0.06318 ; var espilon_eiU ; stderr 0.019 ;//gera end; check; steady (solve_algo = 1); varobs yU , iU , c_HU , rU , mU ; //estimation (datafile =mahone,mh_replic=0,irf=10,order=1) yU,iU,piU,rU,mU; estimation (datafile=mahone,mh_replic=0,irf=10,order=1) yU,iU,c_HU,rU,mU; stoch_simul(conditional_variance_decomposition = 1)yU,iU,c_HU,rU,mU;