//////////////////Uribe RBC makalesinden  uribe ss leriyle SON HAL?///////////////////

/////////////////endgn var?ables//////////////////////////////////////////////////

var 

c,                    // consumption
h,                    // hours worked
lamda,                // lagrangian coeff
a,                    // productivity shock
g,                    // growth rate of prod. shock
k,                    // capital
d,
i,r,y, k_over_gh,v,s,mu,gy,gc,gi,tb,tby;
/////////////////exogn var?ables//////////////////////////////////////////////////

varexo 
    
ea,                   // STD of innovation in transitory technology shock
eg,                   // STD of innovation in permanent technology shock
emu,
es,
ev;
parameters 
/////////////////CALIBRATED PARAMETERS////////////////////////////////////

gammma,delta,alphha, phi,w, theta,betta, dbar,rstar,gd, psi,rhoa,rhog,sd,yss,kss,k_over_ghss,hss,share_s,rhov,rhos,rhomu;              

gammma  = 2;                          // intertemporal elasticity of substitution :     define curvature of the period utility func
delta  = 0.1255;                     // depreciation rate of capital
alphha  = 0.32;                       // Capital elasticity of the production function
phi    = 2.867166242;                      // parameter governing the debt elasticity of the interest rate:   measure sensitivity of country interest rate premium to dev.of external debt from trend
w      = 1.6;                        // for labor supply elasticity :exponent of labor in utility function
theta  = 2.24;                       // Preference parameter
betta   = 0.9224;                     // discount factor
dbar   = 0.007;                      // Steady state of detrended external debt
gd     = 1.009890776;                      // deterministic growth rate of productivity factor X Gross growth rate of output
%rstar  = ((1/betta)*(gd^(gammma)))-1;  // world interest rate
share_s= 0.1;                        //share of public spending 

////////////////////estimated parameters/////////////////////////////////////

psi    =4.810804147 ;                   // for quadratic capital adjustment cost

rhoa   =0.864571931;                   // Serial correlation of transitory technology shock
rhog   =0.323027844;                   // Serial correlation of innovation in permanent technology shock
rhov   =0.850328786;
rhos   =0.205034668;
rhomu  =0.906802889;
%k_over_ghss=((((gd^(gammma))/betta)-1+delta)/alphha)^(1/(alphha-1)); //(K/GH) from egn 4                                              // productivity shock 
%hss= (((1-alphha)* gd * ((k_over_ghss)^alphha ))/ theta)^(1/(w-1));  //hours
%kss = k_over_ghss * gd * hss;                                 //capital

%yss= (kss^(alphha)) * ((hss*gd)^(1-alphha));                //output
%sd= yss*share_s;
///////////////////MODEL//////////////////////////////////////////////////////
model;

v*(c-(theta*(w^(-1))*h^(w)))^(-gammma)=lamda;                                     //foc for consumption
 theta*h^(w-1)=((1-alphha)*a*g^(1-alphha))*(k(-1)/h)^(alphha);                    //foc for hours worked
lamda=(betta/g^(gammma))*(1+rstar+phi*((exp(d(-1)-dbar))-1)+(exp(mu-1))-1)*lamda(+1);      // foc. for debt
(1+psi*((k/k(-1))*g-gd))*lamda=(betta/g^(gammma))*lamda(+1)*(1-delta+(alphha*a(+1)*(g(+1)*h(+1)/k)^(1-alphha))+psi*(k(+1)/k)*g(+1)*((k(+1)/k)*g(+1)-gd)
-psi/2*((k(+1)/k)*g(+1)-gd)^2);                                              // foc for capital stock   

(d/(1+r))*g=d(-1)-y+c+i+s+psi/2*(((k/k(-1))*g-gd)^(2))*k(-1);                        // budget constraint 
r=rstar+phi*((exp(d(-1)-dbar))-1)+(exp(mu-1))-1;                                               //interest rate eqn
k*g=(1-delta)*k(-1)+i;                                                     //capital stock acc
y=a*((k(-1))^(alphha))*((g*h)^(1-alphha));                                         //production func
k_over_gh=k(-1)/(g*h);
tb = y - c - i-s-psi/2*(((k/k(-1))*g-gd)^(2))*k(-1); //Trade balance
tby = tb / y;

log(a)   = rhoa * log(a(-1))+ea;
log(g/gd)= rhog * log(g(-1)/gd)+eg;
log(v)   = rhov * log(v(-1))+ev;                                                    //preference shock process
log(s/sd)= rhos * log((s(-1)/sd))+es;                                                    //spending shock process 
log(mu)  = rhomu* log(mu(-1))+emu;                                                //country premium shock process


%gy=log(y)-log(y(-1))+log(g(-1));
%gc=log(c)-log(c(-1))+log(g(-1));
%gi=log(i)-log(i(-1))+log(g(-1));
gy=y/y(-1)*g(-1);
gc=c/c(-1)*g(-1);
gi=i/i(-1)*g(-1);


end;
/////////////////SS values/////////////////////////////////////////////////////
initval;

d  = dbar;                                             // foreign debt
r  = rstar;                                            // Country interest rate
g  = gd;                                               // Growth rate of nonstationary productivity shock
a  = 1;  
mu = 1;
v  = 1;
s = sd;
k_over_gh=((((gd^(gammma))/betta)-1+delta)/alphha)^(1/(alphha-1)); //(K/GH) from egn 4                                              // productivity shock 
h = (((1-alphha)* gd * ((k_over_gh)^alphha ))/ theta)^(1/(w-1));  //hours
k = k_over_gh * gd * h;                                 //capital
i = k*(gd-1+delta);                                   //inv.
%y= (k^(alphha)) * ((h*gd)^(1-alphha));                //output


%c = ((gd/(1+r))-1) * d + y - i-sd;                     //Consumption
%lamda=(c-theta*(w^(-1))*h^(w))^(-gammma);            // marginal utility of wealth


gy=g;
gc=g;
gi=g;
tb=y-c-i-s;
tby=tb/y;

end;
steady;
shocks;

var ea; stderr  0.03305509;
var eg; stderr 0.010561526; 
var ev; stderr  0.539099454;
var es; stderr 0.018834175; 
var emu; stderr 0.05719545; 
end;

stoch_simul(order=1,periods=400000, drop=20000,irf=50);