var y i k a c;
varexo e;
parameters alpha beta delta rho sigma sigmae;
alpha = 0.33;
beta = 0.99;
delta = 0.025;
rho = 0.95;
sigma = 2;
sigmae = 0.01;

model;
(c)^(-sigma) = beta*((c(+1))^(-sigma))*(alpha*(a(+1))*((k))^(alpha-
1) + (1-delta));
(y) = (a)*(k(-1))^(alpha);
(k) = (a)*(k(-1))^(alpha) - (c) + (1-delta)*(k(-1));
a = rho*a(-1) + e;
(i) = (y) - (c);
end;

write_latex_dynamic_model; 

initval;
k = log(29);
y = log(3);
a = 0;
c = log(2.5);
i = log(1.5);
end;
check;

steady(solve_algo =3);


shocks;
var e = sigmae^2;

end;


stoch_simul(order = 2, irf = 40) c y i k a;