//
var  y  c  k  i  l y_l  w  r  z  ;
varexo  e;
parameters  beta  psi  delta  alpha  rho   epsilon;
alpha  =  0.33;
beta  =  0.99;
delta  =  0.023;
psi  =  1.75;
rho  =  0.95;
epsilon  =  10;
 
model;
(1/c)  =  beta*(1/c(+1))*(1+r(+1)-delta);
psi*c/(1-l) =  w;
c+i  =  y;
y  =  (k(-1)^alpha)*(exp(z)*l)^(1-alpha);
w  =  y*((epsilon-1)/epsilon)*(1-alpha)/l;
r  =  y*((epsilon-1)/epsilon)*alpha/k(-1);
i  =  k-(1-delta)*k(-1);
y_l= y/l;
z  =  rho*z(-1)+e;
end;
 
initval;
k  =  9;
c  =  0.76;
l  =  0.3;
w  =  2.07;
r  =  0.03;
z  =  0;
e  =  0;
end;
steady;


varobs y;
 
 estimated_params;
alpha,  beta_pdf,  0.35,  0.02;
beta,  beta_pdf,  0.99,  0.002;
delta,  beta_pdf,  0.025,  0.003;
psi,  gamma_pdf,  1.75,  0.1;
rho,  beta_pdf,  0.95,  0.05;
epsilon,  gamma_pdf,  10,  0.5;
stderr  e,  inv_gamma_pdf,  0.01,  inf;
end;
 
estimation(datafile=y,mh_replic=2000,mh_nblocks=5,mh_drop=0.45,mh_jscale=0.8, mode_compute=4);