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

parameters alpha, beta, gamma, delta, rho, sigma;

alpha = 0.33;
beta = 0.95;
gamma = 3;
delta = 0.04;
rho = 0.95;
sigma = 0.07;

model;

y = exp(z)*k(-1)^alpha;
c + k = y + (1-delta)*k(-1);
c^(-gamma) = beta*c(+1)^(-gamma)*(alpha*exp(z(+1))*k^(alpha-1) + 1 - delta);
z = rho*z(-1) + e;  

end;

initval;
k = ((1/beta-1+delta)/alpha)^(1/(alpha-1));
y = k^alpha;
c = y - delta*k; 
z = 0;
end;

steady;

shocks;
var e; stderr sigma;

end;
randn('state',123);
stoch_simul(drop=0,replic=1, irf=40,periods = 0,nomoments,order=2); %simul_seed=1
%forecast(nomoments,periods=40) y, c, k;