var  c1welf,// welfare home
c1ygap, //log deviation f fross output from the value of gross output in a model that excludes nominal rigidities
c1lambdaq, // langrange multiplier on the households budget constrain
c1q, // Lagrange multiplier on the capital accumulation equation
c1i, //investment goods 
c1k, // capital accumulation
c1c, //consumption basket
c1cne, //nonoil consumption aggregate
c1cd, // domestic consumption
c1mc,// imported basket consumption
c1oc,//oil demand from consumption function
c1id,// domestic investment
c1rpipd,// ratio investment' s price versus domestic prices 
c1mi,//imported investments
c1v, // value added
c1y, // composite home-produced non oil good
c1rk,// interest rate capital 
c1l,//labor
c1o,// oil demand 
c1rrs,//real interest rate
c1m,//aggregate imports
c1tbal,//trade balance
c1gtbal,//goods trade balance
c1g,//government spending
c1shockgy,
c1op,
c1os,
c1ow,
c1rpopd,
c1oi,
c1zc,
c1zclag,
c1zi,
c1yo,//oil supply 
c1lagyo,
c1muoc,
c1lagmuoc,
c1muc,
c1omegacm,
c1lagomegacm,
c1omegaim,
c1rer,
c1rpwopd,
c1b,
c1rpmcpd,
c1z,
c1zw,
c1zwlag,
c1muo,
c1muow,
c1muowlag,
c1rpmipd,
c1x,
c1w,
c1oy,// oil demand from production
c1thetapvar,
c1wdes,
c1thetawvar,
c1lambdaq_pot,
c1q_pot,
c1i_pot,
c1k_pot,
c1c_pot,
c1cne_pot,
c1cd_pot,
c1mc_pot,
c1oc_pot,
c1id_pot,
c1rpipd_pot,
c1mi_pot,
c1v_pot,
c1y_pot,
c1rk_pot,
c1l_pot,
c1o_pot,
c1rrs_pot,
c1m_pot,
c1tbal_pot,
c1g_pot,
c1op_pot,
c1os_pot,
c1ow_pot,
c1rpopd_pot,
c1oi_pot,
c1rer_pot,
c1rpwopd_pot,
c1b_pot,
c1rpmcpd_pot,
c1rpmipd_pot,
c1x_pot,
c1w_pot,
c1oy_pot,
c1rmcpd_pot,
c1wdes_pot,
c1rpcpd_pot,
c1rmcpd,
c1rpcpd,
c1dpd,
c1dcore,
c1dhead,
c1dpwo,
c1rpnepd,
c1rs,
c1pitar,
c1hw,
c1gw,
c1wstar,
c1omegabar,
c1omega,
c1hp,
c1gp,
c1pstar,
c1pidbar,
c1pid,
c1deltad,
c1yd,
c1yd_pot,
c2welf,// welfare for
c2lambdaq,
c2q,
c2i,
c2k,
c2c,
c2cne,
c2cd,
c2mc,
c2oc,
c2id,
c2rpipd,
c2mi,
c2v,
c2y,
c2rk,
c2l,
c2o,
c2rrs,
c2m,
c2tbal,
c2gtbal,
c2g,
c2shockgy,
c2op,
c2os,
c2ow,
c2rpopd,
c2oi,
c2zc,
c2zclag,
c2zi,
c2yo,
c2lagyo,
c2muoc,
c2lagmuoc,
c2muc,
c2omegacm,
c2lagomegacm,
c2omegaim,
c2rpwopd,
c2rpmcpd,
c2z,
c2muo,
c2rpmipd,
c2x,
c2w,
c2oy,
c2thetapvar,
c2wdes,
c2thetawvar,
c2lambdaq_pot,
c2q_pot,
c2i_pot,
c2k_pot,
c2c_pot,
c2cne_pot,
c2cd_pot,
c2mc_pot,
c2oc_pot,
c2id_pot,
c2rpipd_pot,
c2mi_pot,
c2v_pot,
c2y_pot,
c2rk_pot,
c2l_pot,
c2o_pot,
c2rrs_pot,
c2m_pot,
c2tbal_pot,
c2g_pot,
c2op_pot,
c2os_pot,
c2ow_pot,
c2rpopd_pot,
c2oi_pot,
c2rpwopd_pot,
c2rpmcpd_pot,
c2rpmipd_pot,
c2x_pot,
c2w_pot,
c2oy_pot,
c2rmcpd_pot,
c2wdes_pot,
c2rpcpd_pot,
c2rmcpd,
c2rpcpd,
c2dpd,
c2dcore,
c2rpnepd,
c2rs,
c2pitar,
c2hw,
c2gw,
c2wstar,
c2omegabar,
c2omega,
c2hp,
c2gp,
c2pstar,
c2pidbar,
c2pid,
c2deltad,
c2yd,
c2yd_pot,
c3welf,// welfare home
c3ygap, //log deviation f fross output from the value of gross output in a model that excludes nominal rigidities
c3lambdaq, // langrange multiplier on the households budget constrain
c3q, // Lagrange multiplier on the capital accumulation equation
c3i, //investment goods 
c3k, // capital accumulation
c3c, //consumption basket
c3cne, //nonoil consumption aggregate
c3cd, // domestic consumption
c3mc,// imported basket consumption
c3oc,//oil demand from consumption function
c3id,// domestic investment
c3rpipd,// ratio investment' s price versus domestic prices 
c3mi,//imported investments
c3v, // value added
c3y, // composite home-produced non oil good
c3rk,// interest rate capital 
c3l,//labor
c3o,// oil demand 
c3rrs,//real interest rate
c3m,//aggregate imports
c3tbal,//trade balance
c3gtbal,//goods trade balance
c3g,//government spending
 c3shockgy,
c3op,
c3os,
c3ow,
c3rpopd,
c3oi,
c3zc,
c3zclag,
c3zi,
c3yo,
c3lagyo,
c3muoc,
c3lagmuoc,
c3muc,
c3omegacm,
c3lagomegacm,
c3omegaim,
c3rer,
c3rpwopd,
c3b,
c3rpmcpd,
c3z,
c3zw,
c3zwlag,
c3muo,
c3muow,
c3muowlag,
c3rpmipd,
c3x,
c3w,
c3oy,
c3thetapvar,
c3wdes,
c3thetawvar,
c3lambdaq_pot,
c3q_pot,
c3i_pot,
c3k_pot,
c3c_pot,
c3cne_pot,
c3cd_pot,
c3mc_pot,
c3oc_pot,
c3id_pot,
c3rpipd_pot,
c3mi_pot,
c3v_pot,
c3y_pot,
c3rk_pot,
c3l_pot,
c3o_pot,
c3rrs_pot,
c3m_pot,
c3tbal_pot,
c3g_pot,
c3op_pot,
c3os_pot,
c3ow_pot,
c3rpopd_pot,
c3oi_pot,
c3rer_pot,
c3rpwopd_pot,
c3b_pot,
c3rpmcpd_pot,
c3rpmipd_pot,
c3x_pot,
c3w_pot,
c3oy_pot,
c3rmcpd_pot,
c3wdes_pot,
c3rpcpd_pot,
c3rmcpd,
c3rpcpd,
c3dpd,
c3dcore,
c3dhead,
c3dpwo,
c3rpnepd,
c3rs,
c3pitar,
c3hw,
c3gw,
c3wstar,
c3omegabar,
c3omega,
c3hp,
c3gp,
c3pstar,
c3pidbar,
c3pid,
c3deltad,
c3yd,
c3yd_pot, 
dpcexfe_obs,
dcomp_obs, 
fedfunds_obs, 
rer_log_obs,
fixi_share_us_obs,
log_gdp_us_obs, 
pce_share_us_obs,
exp_share_us_obs,
imp_share_us_obs, 
oilimp_share_us_obs, 
oilprod_us_deltalog_obs, 
oilprod_for_deltalog_obs,
delta_logoilprice_obs;  
//log_gdp_us,
//log_oil_price;
//delta_logoilprice;
 



parameters  c1sigma,
c1vkappa, //'c1vkappa', 0.0, 0.98,'Habits in Consumption';...
c1grmuzss,//'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...
c1psii, // 'c1psii',0,50,'Investment Adjustment Cost';...
c1beta, //'c1beta',0.95,1.01,'Discount Factor';...
c1delta            ,
c1shareocc         ,
c1sharemccn        ,
c1rhoc             ,
c1rhoo             ,
c1phimc            ,//'c1phimc', 0,100, 'Nonoil Trade Adjustment Costs';... 
c1phioc            ,//'c1phioc', 0, 100, 'Adjustment Costs For Oil Demand';...    
c1grmuoss          ,//'c1muoss',1,1.1,'Growth Rate of Oil Supply';...
c1sharemii         ,
c1omegak           ,
c1shareky          , % capital to output ratio
c1sharevy          ,
c1rhov             ,
c1omegal           ,
c1sharely          ,
c1shareoyy         , % ratio of oil input to gross 
c1sharecy          , % consumption share of gross output
c1shareiy          ,//investment share of gross output
c1sharegy          ,//government spending share of gross output
c1sharexy          ,
c1ratiomimc        ,
c1sharemy          ,
c1shareowy         ,
c1shareyoy         ,
c1pwoss            ,
c1rhogy            ,//'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.';...
c1scaleshockgyerr  ,//'c1scaleshockgyerr',stdlowerbound,stdupperbound, 'U.S. Gov. Exp. st. dev. of innovation';... 
c1mugdpss          ,
c1shareoy          ,
c1alphaop          ,
c1deltao           ,
c1shareopow        ,
c1shareoiow        ,
c1grmuzoss         ,
c1rhozc1           ,//'c1rhozc1', arlowerbound,arupperbound, 'Technology, growth AR(1) coef.';...         
c1rhozc2           ,//'c1rhozc2', arlowerbound,arupperbound, 'Technology, level error corr. coef.';...  
c1scalezcerr       ,//'c1scalezcerr', stdlowerbound,stdupperbound, 'U.S. Technology, st. dev. of innovation';...    
c1rhozi            ,//'c1rhozi', arlowerbound, arupperbound, 'U.S. Investment Technology Shock AR(1) coef.';...
c1scalezierr       ,//'c1scalezierr',stdlowerbound,stdupperbound, 'U.S. Inv. Tech. st. dev. of innovation';...     
c1rhoyo1           ,//'c1rhoyo1', arlowerbound,arupperbound, 'U.S. Oil Supply, growth AR(1) coef.';...         
c1rhoyo2           ,//'c1rhoyo2', arlowerbound,arupperbound, 'U.S. Oil Supply, level error corr. coef.';...   
c1scaleyoerr       ,//'c1scaleyoerr', stdlowerbound,stdupperbound, 'U.S. Oil Supply, st. dev. of innovation';... 
c1rhomuoc1         ,//'c1rhomuoc1', arlowerbound,arupperbound, 'Oil Demand, growth AR(1) coef.';...      
c1rhomuoc2         ,//'c1rhomuoc2', arlowerbound,arupperbound, 'Oil Demand, level error corr. coef.';...    
c1scalemuocerr     ,//'c1scalemuocerr', stdlowerbound,stdupperbound, 'U.S. Oil Demand, st. dev. of innovation';...   
c1rhomuc           ,//'c1rhomuc', arlowerbound,arupperbound, 'Preference Shock, AR(1) coef.';...       
c1scalemucerr      ,//'c1scalemucerr', stdlowerbound,stdupperbound, 'Preference Shock, st. dev. of innovation';...  
c1rhoomegacm1      ,//'c1rhoomegacm1', arlowerbound,arupperbound, 'Import Preference, AR(1) coef.';...
c1rhoomegacm2      ,//'c1rhoomegacm2', arlowerbound,arupperbound, 'Import Preference, level error corr. coef.';...
c1scaleomegacmerr  ,//'c1scaleomegacmerr', stdlowerbound,stdupperbound, 'U.S. Import Preference, st. dev. of innovation';...
c1phibparm         ,
c1rhozw1           ,//'c1rhozw1', arlowerbound,arupperbound, 'World Technology, growth AR(1) coef.';...   
c1rhozw2           ,//'c1rhozw2', arlowerbound,arupperbound, 'World Technology, level error corr. coef.';...     
c1scalezwerr       ,//'c1scalezwerr', stdlowerbound,stdupperbound, 'World Technology, st. dev. of innovation';...
c1rhomuow1         ,//'c1rhomuow1',arlowerbound,arupperbound, 'World Oil Demand, growth AR(1) coef.' ;...      
c1rhomuow2         ,//'c1rhomuow2', arlowerbound,arupperbound, 'World Oil Demand, level error corr. coef.' ;...    
c1scalemuowerr     ,//'c1scalemuowerr', stdlowerbound,stdupperbound, 'World Oil Demand, st. dev. of innovation';...  
c1phioy            ,
c1rhothetapvar     ,//'c1rhothetapvar',arlowerbound,arupperbound, 'U.S. Price Markup, AR(1) coef.';... 
c1scalethetapvarerr,//'c1scalethetapvarerr',stdlowerbound,stdupperbound,'U.S. Price Markup, st. dev. of innovation';...
c1labshare         ,
c1chi              ,//'c1chi',0.001,1000,'Determines Lab. Supply El. (1/param/2)'};
c1rhothetawvar     ,//'c1rhothetawvar',arlowerbound,arupperbound, 'U.S. Wage Markup, AR(1) coef.';... 
c1scalethetawvarerr,//'c1scalethetawvarerr',stdlowerbound,stdupperbound,'U.S. Wage Markup, st. dev. of innovation';...
c1iotap            ,//'c1iotap',0,1,'Lagged Price Indexation';...
c1xip              ,//'c1xip',0.05,.95,'Calvo Price Parameter';...
c1thetap           ,
c1thetaw           ,
c1iotaw            ,//'c1iotaw',0,1,'Lagged Wage Indexation';...
c1xiw              ,//'c1xiw',0.05,.89,'Calvo Wage Parameter';...
c1gamrs            ,//'c1gamrs',0,0.95,'Policy Rate Smoothing';...
c1gamomega         ,
c1gamrs2           ,
c1gamdpc           ,//'c1gamdpc',.01,10,'Weight on Inflation in Monetary Policy Rule';...
c1gamdpc2          ,
c1gamgdpgap        ,//'c1gamgdpgap',0,5,'Weight on Output Gap in Monetary Policy Rule';...
c1gamdpwo          ,
c1rhopitar         ,//'c1rhopitar',arlowerbound,arupperbound, 'U.S. Monetary Policy, AR(1) coef.';...   
c1scalepitarerr    ,//'c1scalepitarerr',stdlowerbound,stdupperbound,'U.S. Monetary Policy, st. dev. of innovation';...
c1chi0,
c1omegaoc,
c1omegacc
c1omegac,
c1omegamc,
c1omegai,
c1omegami,
c1rhoi,
c1omegavy,
c1omegaoy,
c1relc2,
c1pistar,// 'c1pistar',0,2,'Steady State Inflation';...
c1tauw,
c1taup,
c1yss,
c1rsss,
c1sharengdpny,
c2sigma            ,
c2vkappa           ,
c2grmuzss          ,
c2psii             ,
c2beta             ,
c2delta            ,
c2shareocc         ,
c2sharemccn        ,
c2rhoc             ,
c2rhoo             ,
c2phimc            ,
c2phioc            ,
c2grmuoss          ,
c2sharemii         ,
c2omegak           ,
c2shareky          ,
c2sharevy          ,
c2rhov             ,
c2omegal           ,
c2sharely          ,
c2shareoyy         ,
c2sharecy          ,
c2shareiy          ,
c2sharegy          ,
c2sharexy          ,
c2ratiomimc        ,
c2sharemy          ,
c2shareowy         ,
c2shareyoy         ,
c2pwoss            ,
c2rhogy            ,
c2scaleshockgyerr  ,
c2mugdpss          ,
c2shareoy          ,
c2alphaop          ,
c2deltao           ,
c2shareopow        ,
c2shareoiow        ,
c2grmuzoss         ,
c2rhozc1           ,
c2rhozc2           ,
c2scalezcerr       ,//'c2scalezcerr', stdlowerbound,stdupperbound, 'Foreign Technology, st. dev. of innovation';...
c2rhozi            ,
c2scalezierr       ,
c2rhoyo1           ,//'c2rhoyo1', arlowerbound,arupperbound, 'Foreign Oil Supply, growth AR(1) coef.';...  
c2rhoyo2           ,//'c2rhoyo2', arlowerbound,arupperbound, 'Foreign Oil Supply, level error corr. coef.';...   
c2scaleyoerr       ,//'c2scaleyoerr', stdlowerbound,stdupperbound, 'Foreign Oil Supply, st. dev. of innovation';...     
c2rhomuoc1         ,
c2rhomuoc2         ,
c2scalemuocerr     ,//'c2scalemuocerr', stdlowerbound,stdupperbound, 'Foreign Oil Demand, st. dev. of innovation';...
c2rhomuc           ,
c2scalemucerr      ,//'c2scalemucerr', stdlowerbound,stdupperbound, 'Preference Shock, st. dev. of innovation';...    
c2rhoomegacm1      ,
c2rhoomegacm2      ,
c2scaleomegacmerr  ,//'c2scaleomegacmerr', stdlowerbound,stdupperbound, 'Foreign Import Preference, st. dev. of innovation';...
c2shareoprod       ,
c2shareocon        ,
c2phioy            ,
c2rhothetapvar     ,
c2scalethetapvarerr,
c2labshare         ,
c2chi              ,
c2rhothetawvar     ,
c2scalethetawvarerr,
c2thetap           ,
c2thetaw           ,
c2iotap            ,
c2xip              ,
c2iotaw            ,
c2xiw              ,
c2gamrs            ,
c2gamdpc           ,
c2gamrer           ,//'c2gamrer',0,5,'Weight on Inflation in Foreign Rule';...
c2gamgdpgap        ,
c2rhopitar         ,
c2scalepitarerr,
c2chi0,
c2omegaoc,
c2omegacc
c2omegac,
c2omegamc,
c2omegai,
c2omegami,
c2rhoi,
c2omegavy,
c2omegaoy,
c2pistar,
c2tauw,
c2taup,
c2yss,
c2rsss,
c3sigma,
c3vkappa, //'c1vkappa', 0.0, 0.98,'Habits in Consumption';...
c3grmuzss,//'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...
c3psii, // 'c1psii',0,50,'Investment Adjustment Cost';...
c3beta, //'c1beta',0.95,1.01,'Discount Factor';...
c3delta            ,
c3shareocc         ,
c3sharemccn        ,
c3rhoc             ,
c3rhoo             ,
c3phimc            ,//'c1phimc', 0,100, 'Nonoil Trade Adjustment Costs';... 
c3phioc            ,//'c1phioc', 0, 100, 'Adjustment Costs For Oil Demand';...    
c3grmuoss          ,//'c1muoss',1,1.1,'Growth Rate of Oil Supply';...
c3sharemii         ,
c3omegak           ,
c3shareky          , % capital to output ratio
c3sharevy          ,
c3rhov             ,
c3omegal           ,
c3sharely          ,
c3shareoyy         , % ratio of oil input to gross 
c3sharecy          , % consumption share of gross output
c3shareiy          ,//investment share of gross output
c3sharegy          ,//government spending share of gross output
c3sharexy          ,
c3ratiomimc        ,
c3sharemy          ,
c3shareowy         ,
c3shareyoy         ,
c3pwoss            ,
c3rhogy            ,//'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.';...
c3scaleshockgyerr  ,//'c1scaleshockgyerr',stdlowerbound,stdupperbound, 'U.S. Gov. Exp. st. dev. of innovation';... 
c3mugdpss          ,
c3shareoy          ,
c3alphaop          ,
c3deltao           ,
c3shareopow        ,
c3shareoiow        ,
c3grmuzoss         ,
c3rhozc1           ,//'c1rhozc1', arlowerbound,arupperbound, 'Technology, growth AR(1) coef.';...         
c3rhozc2           ,//'c1rhozc2', arlowerbound,arupperbound, 'Technology, level error corr. coef.';...  
c3scalezcerr       ,//'c1scalezcerr', stdlowerbound,stdupperbound, 'U.S. Technology, st. dev. of innovation';...    
c3rhozi            ,//'c1rhozi', arlowerbound, arupperbound, 'U.S. Investment Technology Shock AR(1) coef.';...
c3scalezierr       ,//'c1scalezierr',stdlowerbound,stdupperbound, 'U.S. Inv. Tech. st. dev. of innovation';...     
c3rhoyo1           ,//'c1rhoyo1', arlowerbound,arupperbound, 'U.S. Oil Supply, growth AR(1) coef.';...         
c3rhoyo2           ,//'c1rhoyo2', arlowerbound,arupperbound, 'U.S. Oil Supply, level error corr. coef.';...   
c3scaleyoerr       ,//'c1scaleyoerr', stdlowerbound,stdupperbound, 'U.S. Oil Supply, st. dev. of innovation';... 
c3rhomuoc1         ,//'c1rhomuoc1', arlowerbound,arupperbound, 'Oil Demand, growth AR(1) coef.';...      
c3rhomuoc2         ,//'c1rhomuoc2', arlowerbound,arupperbound, 'Oil Demand, level error corr. coef.';...    
c3scalemuocerr     ,//'c1scalemuocerr', stdlowerbound,stdupperbound, 'U.S. Oil Demand, st. dev. of innovation';...   
c3rhomuc           ,//'c1rhomuc', arlowerbound,arupperbound, 'Preference Shock, AR(1) coef.';...       
c3scalemucerr      ,//'c1scalemucerr', stdlowerbound,stdupperbound, 'Preference Shock, st. dev. of innovation';...  
c3rhoomegacm1      ,//'c1rhoomegacm1', arlowerbound,arupperbound, 'Import Preference, AR(1) coef.';...
c3rhoomegacm2      ,//'c1rhoomegacm2', arlowerbound,arupperbound, 'Import Preference, level error corr. coef.';...
c3scaleomegacmerr  ,//'c1scaleomegacmerr', stdlowerbound,stdupperbound, 'U.S. Import Preference, st. dev. of innovation';...
c3phibparm         ,
c3rhozw1           ,//'c1rhozw1', arlowerbound,arupperbound, 'World Technology, growth AR(1) coef.';...   
c3rhozw2           ,//'c1rhozw2', arlowerbound,arupperbound, 'World Technology, level error corr. coef.';...     
c3scalezwerr       ,//'c1scalezwerr', stdlowerbound,stdupperbound, 'World Technology, st. dev. of innovation';...
c3rhomuow1         ,//'c1rhomuow1',arlowerbound,arupperbound, 'World Oil Demand, growth AR(1) coef.' ;...      
c3rhomuow2         ,//'c1rhomuow2', arlowerbound,arupperbound, 'World Oil Demand, level error corr. coef.' ;...    
c3scalemuowerr     ,//'c1scalemuowerr', stdlowerbound,stdupperbound, 'World Oil Demand, st. dev. of innovation';...  
c3phioy            ,
c3rhothetapvar     ,//'c1rhothetapvar',arlowerbound,arupperbound, 'U.S. Price Markup, AR(1) coef.';... 
c3scalethetapvarerr,//'c1scalethetapvarerr',stdlowerbound,stdupperbound,'U.S. Price Markup, st. dev. of innovation';...
c3labshare         ,
c3chi              ,//'c1chi',0.001,1000,'Determines Lab. Supply El. (1/param/2)'};
c3rhothetawvar     ,//'c1rhothetawvar',arlowerbound,arupperbound, 'U.S. Wage Markup, AR(1) coef.';... 
c3scalethetawvarerr,//'c1scalethetawvarerr',stdlowerbound,stdupperbound,'U.S. Wage Markup, st. dev. of innovation';...
c3iotap            ,//'c1iotap',0,1,'Lagged Price Indexation';...
c3xip              ,//'c1xip',0.05,.95,'Calvo Price Parameter';...
c3thetap           ,
c3thetaw           ,
c3iotaw            ,//'c1iotaw',0,1,'Lagged Wage Indexation';...
c3xiw              ,//'c1xiw',0.05,.89,'Calvo Wage Parameter';...
c3gamrs            ,//'c1gamrs',0,0.95,'Policy Rate Smoothing';...
c3gamomega         ,
c3gamrs2           ,
c3gamdpc           ,//'c1gamdpc',.01,10,'Weight on Inflation in Monetary Policy Rule';...
c3gamdpc2          ,
c3gamgdpgap        ,//'c1gamgdpgap',0,5,'Weight on Output Gap in Monetary Policy Rule';...
c3gamdpwo          ,
c3rhopitar         ,//'c1rhopitar',arlowerbound,arupperbound, 'U.S. Monetary Policy, AR(1) coef.';...   
c3scalepitarerr    ,//'c1scalepitarerr',stdlowerbound,stdupperbound,'U.S. Monetary Policy, st. dev. of innovation';...
c3chi0,
c3omegaoc,
c3omegacc,
c3omegac,
c3omegamc,
c3omegai,
c3omegami,
c3rhoi,
c3omegavy,
c3omegaoy,
c3relc2,
c3pistar,// 'c1pistar',0,2,'Steady State Inflation';...
c3tauw,
c3taup,
c3yss,
c3rsss,
c3sharengdpny;





c1sigma  = 1; 
c1vkappa = 0.65; 
c1grmuzss = 1.005; 
c1psii = 3.51;
c1beta = 0.99; 
c1delta = 0.025; 
c1rhoc = 1.32; 
c1rhoo = 1.731; 
c1phimc = 0; 
c1phioc  = 0;
c1grmuoss  = 1.0026;
c1rhov  = 2; 
c1omegal = 1;
c1ratiooyoc = 1.86;
c1shareiy  = 0.15;
c1sharegy = 0.18; 
c1sharemy   = 0.12; 
c1shareowy_nominal = 0.0406;
c1rhogy =  0.9989; 
c1shareoy = 0.040642185;
c1alphaop = 0.9999;
c1deltao = 0.4; 
c1grmuzoss  = 0.0032; 
c1rhozc1  =  0.2162; 
c1rhozc2  =  0.0001; 
c1scalezcerr = 0.00655;
c1rhozi = 0.9059;
c1scalezierr = 0.0265;
c1rhoyo1 =  0.1243;
c1rhoyo2 = 0.0001; 
c1scaleyoerr = 0.025; 
c1rhomuoc1 = 0.0001; 
c1rhomuoc2 =  0.0144;
c1scalemuocerr = 0.047; 
c1rhomuc =  0.9188;
c1scalemucerr = 0.6484;
c1rhoomegacm1 = 0.0001; 
c1rhoomegacm2 = 0.0019; 
c1scaleomegacmerr = 0.02684;
c2sigma = 1.5;
c2vkappa  = 0.8; 
c2grmuzss = 0.006;
c2psii  = 3; 
c2beta  = 0.99; 
c2delta  = 0.025; 
c2rhoc   = 1.32; 
c2rhoo   = 1.731; 
c2phimc  = 0; 
c2phioc  = 0; 
c2grmuoss = 0.0026;
c2rhov = 2; 
c2omegal =1; 
c2shareiy  = 0.15; 
c2sharegy  = 0.18; 
c2sharemy  = 0.12;
c2shareowy_nominal = 0.088;           		 
c2shareyoy = 0.015; 
c2pwoss =  0.999; 
c2rhogy  = 0.9989;
c1scaleshockgyerr = 0.0246;
c2shareoy =  0.045; 
c2alphaop = 0.9999; 
c2deltao  = 0.4;
c2grmuzoss  = 0.0032;
c2rhozc1  =   0.2162;
c2rhozc2  = 0.0001; 
c2scalezcerr  = 0.0107; 
c2rhozi = 1; 
c2scalezierr = 1; 
c2rhoyo1  = 0.1235; 
c2rhoyo2  = 0.0001;
c2scaleyoerr = 0.1;
c2rhomuoc1  = 0.0001;
c2rhomuoc2  = 0.0144;    
c2scalemuocerr = 0.1269; 
c2rhomuc = 0.9; 
c2scalemucerr = 0.71744; 
c2rhoomegacm1  = 0; 
c2rhoomegacm2 = 0;
c2scaleomegacmerr = 0.0412; 
c1phibparm  = 0;
c1rhozw1 = 0.01;
c1rhozw2  = 0.001;
c1scalezwerr = 0.001; 
c1rhomuow1 = 0.001;    
c1rhomuow2 =  0.001; 
c1scalemuowerr = 0.001; 
c2phioy  = 0;
c1phioy  = 0; 
c2rhothetapvar  = 0.74013; 
c2scalethetapvarerr = 0.477;
c1rhothetapvar =  0.7401; 
c1scalethetapvarerr = 0.4773; 
c2labshare  = 0.4999; 
c2chi  =  10; 
c1less = 0.3333;
c1chi = 59.54; 
c2rhothetawvar = 0.9768;
c2scalethetawvarerr = 3.698; 
c1rhothetawvar = 0.9768; 
c1scalethetawvarerr = 3.698; 
c2thetap  = 0.10;        
c1thetap = 0.10; 
c2thetaw = 0.10; 
c1thetaw  = 0.10;
c2iotap = 0.00000045;
c2xip  = 0.81;
c1iotap = 0.00000045;
c1xip = 0.8139; 
c2iotaw  = 0.00000032;
c2xiw = 0.89;
c1iotaw = 0.00000032;
c1xiw = 0.8899; 
c1gamrs = 0.001;
c1gamdpc = 0.001; 
c1gamdw  = 1000; 
c1gamgdpgap = 0.001; 
c2gamrs  =  0.001;
c2gamdpc  = 0.001;   
c2gamdw  = 1000; 
c2gamrer = 0;
c2gamgdpgap = 0.001; 
c1rhopitar  = 0.402;
c1scalepitarerr = 0.021;
c2rhopitar = 0.402; 
c2scalepitarerr = 0.021;
c1omegaoc = 0.021;
c1omegamc = 0.068;
c1omegami = 0.40;
c1rhoi = 1.32097; 
c1omegavy = 0.9707;
c1omegaoy = 0.026;
c1relc2 = 0.5; 
c1pistar = 1.011;
c1tauw = 0.000; 
c1taup = 0.000; 
c2omegaoc = 0.041;
c2omegacc = 0.959;
c2omegac =  0.961;
c2omegamc = 0.039; 
c2omegai =  0.75;
c2omegami = 0.75; 
c2rhoi = 1.32097; 
c2omegavy =  0.9707; 
c2omegaoy = 0.057; 
c2pistar = 1; 
c2tauw =  0.000; 
c2taup = 0.000;
c2less = 0.333;
c1rsss = 0.01;
c2rsss = 0.01;
c1muzss = 1.005763995; 
c2muzss = 1.005763995;
c1muoss = 1.0026; 
c2muoss = 1.0026;  
c1shareocc =  0.025788799; //(c1shareoy-c1shareoyy)/c1sharecy; 
c1sharemccn = 0.151060059; //c1sharemy*c1sharemcm/(c1sharecy)/c1sharecnc;
c1sharemcm = 0.748233236; // c1sharecnc*c1sharecy/(c1sharecnc*c1sharecy+c1shareiy); 
c1sharemii = 0.151060059; // c1sharemy * c1sharemim / c1shareiy;
c1shareky =  4.898376623; // 1/(1-((1-c1delta)/c1muzss))*c1shareiy;
c1sharecnc = 1-c1shareocc;
c1sharemim = 1-c1sharemcm; 
c1shareoop = (c1beta*(1-c1alphaop)/c1alphaop/(c1muoss-c1beta*(1-c1deltao)))^(1-c1alphaop); // 0.9999;  
c1pwoss =    c1alphaop * c1shareoop; // 0.99906854; 
c1shareowy  = c1shareowy_nominal/c1pwoss; // 0.040637853; 
c1shareyoy  = c1shareowy * 0.3;
c1shareoyy = c1shareoy*(1-1/(1+c1ratiooyoc)); // 0.02926573; 
c1sharevy =  1-c1shareoyy; // 0.97073427; 
c1ratiomimc  = c1sharemim/c1sharemcm;
c1rkstar = c1muzss/c1beta - 1 + c1delta; 
c2rkstar = c2muzss/c2beta - 1 + c2delta; 
c1labshare = c1less/(1-c1less); 
c1chi0 = 0.02; //(c2w)*(c2lambdaq)/((1-(c2l))^(-c2chi));  
c1omegacc =  1 - c1omegaoc; 
c1omegac =  1 - c1omegamc;
c1omegai =   1 - c1omegami ;  
c2chi0 = (c2wdes)*(c2lambdaq)/((1-(c2l))^(-c2chi)); 
c1omegak =  1/(1-(1-c1delta)/c1muzss)*(c1rkstar)^((1+c1rhov)/c1rhov)/c1muzss*c1shareiy/c1sharevy; // 1.54;
c2ratiooyoc = c1ratiooyoc; 
c2shareoyy =  c2shareoy*(1-1/(1+c2ratiooyoc)); // 0.057830975 ;
c2sharevy  =  1-c2shareoyy; // 0.942169025 ; 
c2omegak = 1/(1-(1-c2delta)/c2muzss)*(c2rkstar)^((1+c2rhov)/c2rhov)/c2muzss*c2shareiy/c2sharevy; // 0.96817468 ;  
c1sharely  = c1sharevy*(1-c1omegak*c1rkstar^(-1/c1rhov))^(1+c1rhov); // 1.410279756; 
c2sharely  =  c2sharevy*(1-c2omegak*c2rkstar^(-1/c2rhov))^(1+c2rhov); //  1.150570611 ;
c1yss =  1/(c1sharely/c1less);
c2yss =  1/(c2sharely/c2less);
c2shareowy = c2shareowy_nominal/c2pwoss; //  0.035840191;
c1sharecy   =  1+c1shareoy-c1shareowy*c1pwoss+c1pwoss*c1shareyoy-c1shareoyy-c1shareiy-c1sharegy; // 0.61012; 
c1sharexy   =  c1sharemy+(c1shareowy-c1shareyoy)*c1pwoss; // 0.145613972;    
c1mugdpss  =  (c1muzss+ ( -c1shareoyy+c1shareoy - c1pwoss*c1shareowy + c1pwoss*c1shareyoy)*c1muoss )/( 1 + ( -c1shareoyy+c1shareoy - c1pwoss*c1shareowy + c1pwoss*c1shareyoy) );  //1.005831931; 
c1muzoss =  c1muzss/c1muoss; // 1.00315579;
c1shareopos = (1-c1beta/c1muzss*c1muzoss*(1-c1deltao))/(c1beta*(1-c1alphaop)/c1alphaop); //  0.0000405808; //
c1shareowo =   1/c1shareoop+(1-(1-c1deltao)/c1muoss)*c1muoss*(c1muoss*c1shareopos)^-c1alphaop;  // 0.403047947;   		
c1shareopow  =   (1/(c1shareoop))/c1shareowo;
c1shareoiow  =  1-1/c1shareoop/c1shareowo; 
c2sharecy = 1+c2shareoy-c2shareowy*c2pwoss+c2pwoss*c2shareyoy-c2shareoyy-c2shareiy-c2sharegy;
c2shareocc  =  (c2shareoy-c2shareoyy)/c2sharecy; //  0.040431527;
c2sharecnc = 1-c2shareocc;
c2sharemcm = c2sharecnc*c2sharecy/(c2sharecnc*c2sharecy+c2shareiy); // 0.831063959; 
c2sharemccn = c2sharemy*c2sharemcm/(c2sharecy)/c2sharecnc; // 0.081476188; 
c2sharemim = 1-c2sharemcm;  
c2sharemii = c2sharemy*c2sharemim/c2shareiy; // 0.081476188; 
c2shareky  = (1/(1-(1-c2delta)/c2muzss)) * c2shareiy; // 4.903933874;
c2sharexy  = c2sharemy-(c1shareowy-c1shareyoy)*c1pwoss*c1relc2*c1yss/c2yss; // 0.058490922;
c2muzoss = c2muzss/c2muoss; 
c2ratiomimc = c2sharemim/c2sharemcm; // 0.203276822; 
c2scaleshockgyerr = c1scaleshockgyerr ;
c2mugdpss =  (c2muzss+ ( -c2shareoyy+c2shareoy - c2pwoss*c2shareowy + c2pwoss*c2shareyoy)*c2muoss )  /( 1 + ( -c2shareoyy+c2shareoy - c2pwoss*c2shareowy + c2pwoss*c2shareyoy) ); // 1.005559766;  
c2shareoop = (c2beta*(1-c2alphaop)/c2alphaop/(c2muoss-c2beta*(1-c2deltao)))^(1-c2alphaop); // 0.9999;
c2shareopos = (1-c2beta/c2muzss*c2muzoss*(1-c2deltao))/(c2beta*(1-c2alphaop)/c2alphaop);// 0.0000405808; 
c2shareowo = 1/c2shareoop+(1-(1-c2deltao)/c2muoss)*c2muoss*(c2muoss*c2shareopos)^-c2alphaop; // 0.403047947;
c2shareopow  =  (1/(c2shareoop))/c2shareowo; // 0.000101049;  
c2shareoiow =  1-1/c2shareoop/c2shareowo; // 0.999898951; 
c2shareoprod = c2shareyoy/(c2shareyoy+c1shareyoy*c1relc2*c1yss/c2yss); // 0.954971775;
c2shareocon  = c2shareowy/(c2shareowy + c1shareowy*c1relc2*c1yss/c2yss); // 0.816406591;
c1gamomega = 0; 
c1gamrs2 = 0.65533860773213;
c1gamdpc2 = 0.19071900990448;
c1gamdpwo = 0;
//steady state ratio between nominal GDP and nominal gross output
c1sharengdpny = 1 - c1shareoyy + c1shareyoy;


c3sharemcm = 0.748233236; // c1sharecnc*c1sharecy/(c1sharecnc*c1sharecy+c1shareiy); 
c3sharemim = 1-c1sharemcm; 
c3sharecnc = 1-c1shareocc;  
c3sigma = 1;
c3vkappa = 0.65; //'c1vkappa', 0.0, 0.98,'Habits in Consumption';...
c3grmuzss = 1.005; //'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...
c3psii = 3.51; // 'c1psii',0,50,'Investment Adjustment Cost';...
c3beta = 0.99;  //'c1beta',0.95,1.01,'Discount Factor';...
c3delta = 0.025;          
c3shareocc  =  0.025788799; //(c1shareoy-c1shareoyy)/c1sharecy;        ,
c3sharemccn = 0.151060059; //c1sharemy*c1sharemcm/(c1sharecy)/c1sharecnc;      ,
c3rhoc = 1.32;           
c3rhoo = 1.731;            
c3phimc = 0;     //'c1phimc', 0,100, 'Nonoil Trade Adjustment Costs';... 
c3phioc = 0;     //'c1phioc', 0, 100, 'Adjustment Costs For Oil Demand';...    
c3grmuoss = 1.0026; //'c1muoss',1,1.1,'Growth Rate of Oil Supply';...
c3ratiooyoc = c1ratiooyoc; 
c3sharemii = 0.151060059; // c1sharemy * c1sharemim / c1shareiy;       ,
c3omegak =  1/(1-(1-c1delta)/c1muzss)*(c1rkstar)^((1+c1rhov)/c1rhov)/c1muzss*c1shareiy/c1sharevy; // 1.54;
c3shareky =  4.898376623; // 1/(1-((1-c1delta)/c1muzss))*c1shareiy;         % capital to output ratio
c3sharevy =  1-c1shareoyy; // 0.97073427;      
c3rhov  = 2;             
c3omegal = 1;       
c3sharely = c1sharevy*(1-c1omegak*c1rkstar^(-1/c1rhov))^(1+c1rhov); // 1.410279756; 
c3shareoyy  = c1shareoy*(1-1/(1+c1ratiooyoc)); // 0.02926573;          % ratio of oil input to gross 
c3sharecy  =  1+c1shareoy-c1shareowy*c1pwoss+c1pwoss*c1shareyoy-c1shareoyy-c1shareiy-c1sharegy; // 0.61012;        , % consumption share of gross output
c3shareiy = 0.15;         ,//investment share of gross output
c3sharegy = 0.18;         ,//government spending share of gross output
c3sharexy =  c1sharemy+(c1shareowy-c1shareyoy)*c1pwoss; // 0.145613972;       
c3ratiomimc = c1sharemim/c1sharemcm;    
c3sharemy  = 0.12;    
c3shareowy = c1shareowy_nominal/c1pwoss; // 0.040637853; 
c3shareyoy = c1shareowy * 0.3; // 0.040642185; 
c3shareoop = (c1beta*(1-c1alphaop)/c1alphaop/(c1muoss-c1beta*(1-c1deltao)))^(1-c1alphaop); // 0.9999;  
c3pwoss =  c1alphaop * c1shareoop; // 0.99906854;           ,
c3rhogy =  0.9989;//'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.';...
c3scaleshockgyerr = 0.0246; ,//'c1scaleshockgyerr',stdlowerbound,stdupperbound, 'U.S. Gov. Exp. st. dev. of innovation';... 
c3mugdpss =  (c1muzss+ ( -c1shareoyy+c1shareoy - c1pwoss*c1shareowy + c1pwoss*c1shareyoy)*c1muoss )/( 1 + ( -c1shareoyy+c1shareoy - c1pwoss*c1shareowy + c1pwoss*c1shareyoy) );  //1.005831931; 
c3shareoy = 0.057;        
c3alphaop = 0.9999;          
c3deltao = 0.4; 
c3shareopow =   (1/(c1shareoop))/c1shareowo;       
c3shareoiow  =  1-1/c1shareoop/c1shareowo;     
c3grmuzoss = 0.0032;  
c3rhozc1  =  0.2162; //'c1rhozc1', arlowerbound,arupperbound, 'Technology, growth AR(1) coef.';...         
c3rhozc2  =  0.0001; //'c1rhozc2', arlowerbound,arupperbound, 'Technology, level error corr. coef.';...  
c3scalezcerr  = 0.00655; //'c1scalezcerr', stdlowerbound,stdupperbound, 'U.S. Technology, st. dev. of innovation';...    
c3rhozi = 0.9059; //'c1rhozi', arlowerbound, arupperbound, 'U.S. Investment Technology Shock AR(1) coef.';...
c3scalezierr = 0.0265;//'c1scalezierr',stdlowerbound,stdupperbound, 'U.S. Inv. Tech. st. dev. of innovation';...     
c3rhoyo1 =  0.1243;//'c1rhoyo1', arlowerbound,arupperbound, 'U.S. Oil Supply, growth AR(1) coef.';...         
c3rhoyo2 = 0.0001;//'c1rhoyo2', arlowerbound,arupperbound, 'U.S. Oil Supply, level error corr. coef.';...   
c3scaleyoerr = 0.025;//'c1scaleyoerr', stdlowerbound,stdupperbound, 'U.S. Oil Supply, st. dev. of innovation';... 
c3rhomuoc1 = 0.0001;//'c1rhomuoc1', arlowerbound,arupperbound, 'Oil Demand, growth AR(1) coef.';...      
c3rhomuoc2 =  0.0144;//'c1rhomuoc2', arlowerbound,arupperbound, 'Oil Demand, level error corr. coef.';...    
c3scalemuocerr = 0.047;//'c1scalemuocerr', stdlowerbound,stdupperbound, 'U.S. Oil Demand, st. dev. of innovation';...   
c3rhomuc =  0.9188;//'c1rhomuc', arlowerbound,arupperbound, 'Preference Shock, AR(1) coef.';...       
c3scalemucerr  = 0.6484;//'c1scalemucerr', stdlowerbound,stdupperbound, 'Preference Shock, st. dev. of innovation';...  
c3rhoomegacm1 = 0.0001;//'c1rhoomegacm1', arlowerbound,arupperbound, 'Import Preference, AR(1) coef.';...
c3rhoomegacm2 = 0.0019;//'c1rhoomegacm2', arlowerbound,arupperbound, 'Import Preference, level error corr. coef.';...
c3scaleomegacmerr  = 0.02684;//'c1scaleomegacmerr', stdlowerbound,stdupperbound, 'U.S. Import Preference, st. dev. of innovation';...
c3phibparm  = 0;  
c3rhozw1 = 0.01;//'c1rhozw1', arlowerbound,arupperbound, 'World Technology, growth AR(1) coef.';...   
c3rhozw2 = 0.001; //'c1rhozw2', arlowerbound,arupperbound, 'World Technology, level error corr. coef.';...     
c3scalezwerr = 0.001; //'c1scalezwerr', stdlowerbound,stdupperbound, 'World Technology, st. dev. of innovation';...
c3rhomuow1  = 0.001;//'c1rhomuow1',arlowerbound,arupperbound, 'World Oil Demand, growth AR(1) coef.' ;...      
c3rhomuow2 =  0.001;//'c1rhomuow2', arlowerbound,arupperbound, 'World Oil Demand, level error corr. coef.' ;...    
c3scalemuowerr = 0.001;//'c1scalemuowerr', stdlowerbound,stdupperbound, 'World Oil Demand, st. dev. of innovation';...  
c3phioy = 0;          
c3rhothetapvar =  0.7401;//'c1rhothetapvar',arlowerbound,arupperbound, 'U.S. Price Markup, AR(1) coef.';... 
c3scalethetapvarerr = 0.4773; //'c1scalethetapvarerr',stdlowerbound,stdupperbound,'U.S. Price Markup, st. dev. of innovation';...
c3labshare = c1less/(1-c1less); // 0.4999;       
c1chi = 59.54;//'c1chi',0.001,1000,'Determines Lab. Supply El. (1/param/2)'};
c3rhothetawvar = 0.74013; //'c1rhothetawvar',arlowerbound,arupperbound, 'U.S. Wage Markup, AR(1) coef.';... 
c3scalethetawvarerr = 3.698; //'c1scalethetawvarerr',stdlowerbound,stdupperbound,'U.S. Wage Markup, st. dev. of innovation';...
c3iotap = 0.00000045; //'c1iotap',0,1,'Lagged Price Indexation';...
c3xip  = 0.8139; //'c1xip',0.05,.95,'Calvo Price Parameter';...
c3thetap = 0.10;         
c3thetaw = 0.10;
c3iotaw = 0.00000032; //'c1iotaw',0,1,'Lagged Wage Indexation';...
c3xiw = 0.8899; //'c1xiw',0.05,.89,'Calvo Wage Parameter';...
c3gamrs = 0.001;//'c1gamrs',0,0.95,'Policy Rate Smoothing';...
c3gamomega = 0;  
c3gamrs2 = 0.65533860773213;        ,
c3gamdpc = 0.001;//'c1gamdpc',.01,10,'Weight on Inflation in Monetary Policy Rule';...
c3gamdpc2 = 0.001; 
c3gamgdpgap = 0.001;//'c1gamgdpgap',0,5,'Weight on Output Gap in Monetary Policy Rule';...
c3gamdpwo = 0;       ,
c3rhopitar = 0.402; //'c1rhopitar',arlowerbound,arupperbound, 'U.S. Monetary Policy, AR(1) coef.';...   
c3scalepitarerr  = 0.021;//'c1scalepitarerr',stdlowerbound,stdupperbound,'U.S. Monetary Policy, st. dev. of innovation';...
c3chi0 = 0.02; //(c2w)*(c2lambdaq)/((1-(c2l))^(-c2chi));  
c3omegaoc = 0.021;
c3omegacc =  1 - c1omegaoc;
c3omegac =  1 - c1omegamc;
c3omegamc = 0.068;
c3omegai =   1 - c1omegami ; 
c3omegami = 0.40;
c3rhoi = 1.32097; 
c3omegavy = 0.9707;
c3omegaoy = 0.026;
c3relc2 = 0.5;
c3pistar = 1.011; // 'c1pistar',0,2,'Steady State Inflation';...
c3tauw = 0.000; 
c3taup = 0.000; 
c3yss =  1/(c1sharely/c1less);
c3rsss = 0.01;
c3sharengdpny = 1 - c1shareoyy + c1shareyoy;
c3shareowy_nominal = 0.0406;
c3less = 0.3333;
c3gamdw  = 1000; 
c3iotaw = 0.00000032;
c3muzss = 1.005763995;     
c3muoss = 1.0026;  
c1muzoss =  c1muzss/c1muoss; // 1.00315579;
c3rkstar = c1muzss/c1beta - 1 + c1delta; 
c3shareopos = (1-c1beta/c1muzss*c1muzoss*(1-c1deltao))/(c1beta*(1-c1alphaop)/c1alphaop); //  0.0000405808; //
c1shareowo =   1/c1shareoop+(1-(1-c1deltao)/c1muoss)*c1muoss*(c1muoss*c1shareopos)^-c1alphaop;  // 0.403047947;    


varexo  c1shockgyerr
c1zcerr
c1zierr
c1yoerr
c1muocerr
c1mucerr
c1omegacmerr
c2shockgyerr
c2zcerr
c2zierr
c2yoerr
c2muocerr
c2mucerr
c2omegacmerr
c1zwerr
c1muowerr
c2thetapvarerr
c1thetapvarerr
c2thetawvarerr
c1thetawvarerr
c1pitarerr
c2pitarerr
c3shockgyerr
c3zcerr
c3zierr
c3yoerr
c3muocerr
c3mucerr
c3omegacmerr
c3zwerr
c3muowerr
c3thetapvarerr
c3thetawvarerr
c3pitarerr
;


model;

//////////////////////////////////
// US country bloc 
//////////////////////////////////

// welfare
c1welf = 1/exp(c1muc)*log(exp(c1muc)*exp(c1c)-c1vkappa/c1grmuzss*exp(c1c(-1)))
      +c1chi0/(1-c1chi)*(1-exp(c1l))^(1-c1chi)
      +c1beta*c1welf(1);

c2welf = 1/exp(c2muc)*log(exp(c2muc)*exp(c2c)-c2vkappa/c2grmuzss*exp(c2c(-1)))
      +c2chi0/(1-c2chi)*(1-exp(c2l))^(1-c2chi)
      +c2beta*c2welf(1);


// fonc consumption
(exp(c1muc)*exp(c1c)-c1vkappa/c1grmuzss*exp(c1c(-1)))^(-1) = exp(c1lambdaq)*exp(c1rpcpd);

// fonc labor
exp(c1wdes) =  c1chi0*(1-exp(c1l))^(-c1chi)/exp(c1lambdaq);

// fonc investment
1- exp(c1q)*exp(c1zi)*(1-c1psii/2*(exp(c1i)/exp(c1i(-1))*c1grmuzss-c1grmuzss)^2)
+exp(c1q)*exp(c1zi)*exp(c1i)*c1psii*(exp(c1i)/exp(c1i(-1))*c1grmuzss
-c1grmuzss)/exp(c1i(-1))*c1grmuzss-c1beta*exp(c1rpipd(+1))/exp(c1rpipd)*exp(c1lambdaq(+1))/exp(c1lambdaq)
*exp(c1q(+1))*exp(c1zi(+1))*exp(c1i(+1))*c1psii*(exp(c1i(+1))/exp(c1i)*c1grmuzss
-c1grmuzss)*exp(c1i(+1))/exp(c1i)^2*c1grmuzss = 0;


// fonc capital
exp(c1q) = c1beta/c1grmuzss/exp(c1rpipd)*exp(c1lambdaq(+1))/exp(c1lambdaq)*exp(c1rk(+1))+(1
-c1delta)*c1beta/c1grmuzss*exp(c1q(+1))*exp(c1rpipd(+1))/exp(c1rpipd)*exp(c1lambdaq(+1))/exp(c1lambdaq);

// capital accumultion
exp(c1k)  = (1-c1delta)/c1grmuzss*exp(c1k(-1))+exp(c1zi)*exp(c1i)*(1-c1psii/2*(exp(c1i)/exp(c1i(-1))*c1grmuzss-c1grmuzss)^2);

// final consumption
exp(c1c) = ((c1omegacc)^(c1rhoo/(1+c1rhoo))*exp(c1cne)^(1/(1+c1rhoo))
+(c1omegaoc)^(c1rhoo/(1+c1rhoo))*(exp(c1muo)*exp(c1oc))^(1/(1+c1rhoo)))^(1+c1rhoo);

// nonoil consumption
exp(c1cne) = ((c1omegac)^(c1rhoc/(1+c1rhoc))*exp(c1cd)^(1/(1+c1rhoc))+(c1omegamc*(exp(c1omegacm)))^(c1rhoc/(1+c1rhoc))*(exp(c1mc))^(1/(1+c1rhoc)))^(1+c1rhoc);

// fonc nonoil consumption
exp(c1rpcpd)*(c1omegacc*exp(c1c)/exp(c1cne))^(c1rhoo/(1+c1rhoo))*(c1omegac*exp(c1cne)/exp(c1cd))^(c1rhoc/(1+c1rhoc)) = 1;

// fonc imports
exp(c1rpmcpd) = exp(c1rpcpd)*(c1omegacc*exp(c1c)/exp(c1cne))^(c1rhoo/(1+c1rhoo))*(c1omegamc*(exp(c1omegacm))*exp(c1cne)/exp(c1mc))^(c1rhoc/(1+c1rhoc));

// fonc oil
exp(c1rpopd) = exp(c1rpcpd) *(c1omegaoc*exp(c1c)/exp(c1muo)/exp(c1oc))^(c1rhoo/(1+c1rhoo))*exp(c1muo);

// investment
exp(c1i) = ((c1omegai)^(c1rhoi/(1+c1rhoi))*exp(c1id)^(1/(1+c1rhoi))+(c1omegami*exp(c1omegaim))^(c1rhoi/(1+c1rhoi))*(exp(c1mi))^(1/(1+c1rhoi)))^(1+c1rhoi);

// fonc domestic investment
exp(c1rpipd)*(c1omegai*exp(c1i)/exp(c1id))^(c1rhoi/(1+c1rhoi)) = 1;

// fonc imported investment
exp(c1rpmipd) = exp(c1rpipd)*(c1omegami*exp(c1omegaim)*exp(c1i)/exp(c1mi))^(c1rhoi/(1+c1rhoi));

// value added
exp(c1v) = ((c1omegak)^(c1rhov/(1+c1rhov))*(exp(c1k(-1))/c1grmuzss)^(1/(1+c1rhov))
+(c1omegal)^(c1rhov/(1+c1rhov))*(exp(c1z)*exp(c1l))^(1/(1+c1rhov)))^(1+c1rhov);

// gross output
exp(c1y) = ((c1omegavy)^(c1rhoo/(1+c1rhoo))*(exp(c1v))^(1/(1+c1rhoo))+(c1omegaoy)^(c1rhoo/(1+c1rhoo))*(exp(c1muo)*exp(c1oy))^(1/(1+c1rhoo)))^(1+c1rhoo);

// fonc capital in production
exp(c1rk) = exp(c1rmcpd)*(c1omegavy*exp(c1y)/exp(c1v))^(c1rhoo/(1+c1rhoo))*(c1omegak*exp(c1v)*c1grmuzss/exp(c1k(-1)))^(c1rhov/(1+c1rhov));

// fonc labor in production 
exp(c1w)/exp(c1z) = exp(c1rmcpd)*(c1omegavy*exp(c1y)/exp(c1v))^(c1rhoo/(1+c1rhoo))*(c1omegal*exp(c1v)/exp(c1z)/exp(c1l))^(c1rhov/(1+c1rhov));

// fonc oil in production 
exp(c1rpopd) = exp(c1rmcpd)*(c1omegaoy*exp(c1y)/exp(c1muo)/exp(c1oy))^(c1rhoo/(1+c1rhoo))*exp(c1muo);

// resource constraint goods
exp(c1yd) = exp(c1cd)+exp(c1id)+exp(c1g)+exp(c1x);

// resource constraint oil 
exp(c1o) = exp(c1oc) + exp(c1oy);

// real interest rate
1/(1+(c1rrs)) = c1beta/c1grmuzss*exp(c1lambdaq(+1))/exp(c1lambdaq);

// imports
exp(c1m) = exp(c1rpmcpd)*exp(c1mc)+exp(c1rpmipd)*exp(c1mi);

// trade balance
(c1tbal) = (exp(c1x)-exp(c1m)+exp(c1rpwopd)*(c1shareyoy*c1yss*exp(c1yo)-exp(c1ow)))/exp(c1yd);

// goods trade balance
(c1gtbal) = (exp(c1x)-exp(c1m))/exp(c1yd);

// government spending
exp(c1g) = c1sharegy*exp(c1yd)*exp(c1shockgy);

// oil inventory equations (old version)
(exp(c1o)) = (exp(c1op))^c1alphaop*(exp(c1os(-1))/c1grmuoss)^(1-c1alphaop);
(exp(c1os)) = (1-c1deltao)/c1grmuoss * exp(c1os(-1)) + (exp(c1oi));
(exp(c1ow)) = (exp(c1op)) + (exp(c1oi));
(exp(c1rpwopd)) = (exp(c1rpopd))*c1alphaop*(exp(c1o))/(exp(c1op));
(exp(c1rpwopd)) = c1beta/c1grmuzss*c1grmuzoss*(exp(c1lambdaq(+1))/exp(c1lambdaq))*(exp(c1rpopd(+1))*(1-c1alphaop)*c1grmuoss*exp(c1o(+1))/(exp(c1os))+ exp(c1rpwopd(+1))*(1-c1deltao));



// exogenous variables

c1shockgy = c1rhogy*c1shockgy(-1) + c1scaleshockgyerr*c1shockgyerr;

c1zc = (1+c1rhozc1-c1rhozc2)*c1zc(-1) - c1rhozc1*c1zclag(-1) + c1scalezcerr*c1zcerr;

exp(c1zclag) = exp(c1zc(-1));

c1zi = c1rhozi*c1zi(-1) + c1scalezierr*c1zierr;

c1yo = (1+c1rhoyo1-c1rhoyo2)*c1yo(-1) - c1rhoyo1*c1lagyo(-1) + c1scaleyoerr*c1yoerr;

exp(c1lagyo) = exp(c1yo(-1));

c1muoc = (1+c1rhomuoc1-c1rhomuoc2)*c1muoc(-1) - c1rhomuoc1*c1lagmuoc(-1)+ c1scalemuocerr*c1muocerr;

exp(c1lagmuoc) = exp(c1muoc(-1));

c1muc = c1rhomuc * c1muc(-1)+ c1scalemucerr*0.01*c1mucerr;

c1omegacm = (1+c1rhoomegacm1-c1rhoomegacm2)*c1omegacm(-1) - c1rhoomegacm1*c1lagomegacm(-1)+ c1scaleomegacmerr*c1omegacmerr;

exp(c1lagomegacm) = exp(c1omegacm(-1));

exp(c1omegaim) = exp(c1omegacm);

c1thetapvar = c1rhothetapvar*c1thetapvar(-1)+c1scalethetapvarerr*c1thetapvarerr;

c1thetawvar = c1rhothetawvar*c1thetawvar(-1)+c1scalethetawvarerr*c1thetawvarerr;


//////////////////////////////////
// JP country bloc 
//////////////////////////////////

// welfare
 c3welf = 1/exp(c3muc)*log(exp(c3muc)*exp(c3c)-c3vkappa/c3grmuzss*exp(c3c(-1)))
      +c3chi0/(1-c3chi)*(1-exp(c3l))^(1-c3chi)
      +c3beta*c3welf(1);

// fonc consumption
(exp(c3muc)*exp(c3c)-c3vkappa/c3grmuzss*exp(c3c(-1)))^(-1) = exp(c3lambdaq)*exp(c3rpcpd);

// fonc labor
exp(c3wdes) =  c3chi0*(1-exp(c3l))^(-c3chi)/exp(c3lambdaq);

// fonc investment
1- exp(c3q)*exp(c3zi)*(1-c3psii/2*(exp(c3i)/exp(c3i(-1))*c3grmuzss-c3grmuzss)^2)
+exp(c3q)*exp(c3zi)*exp(c3i)*c3psii*(exp(c3i)/exp(c3i(-1))*c3grmuzss
-c3grmuzss)/exp(c3i(-1))*c3grmuzss-c3beta*exp(c3rpipd(+1))/exp(c3rpipd)*exp(c3lambdaq(+1))/exp(c3lambdaq)
*exp(c3q(+1))*exp(c3zi(+1))*exp(c3i(+1))*c3psii*(exp(c3i(+1))/exp(c3i)*c3grmuzss
-c3grmuzss)*exp(c3i(+1))/exp(c3i)^2*c3grmuzss = 0;


// fonc capital
exp(c3q) = c3beta/c3grmuzss/exp(c3rpipd)*exp(c3lambdaq(+1))/exp(c3lambdaq)*exp(c3rk(+1))+(1
-c3delta)*c3beta/c3grmuzss*exp(c3q(+1))*exp(c3rpipd(+1))/exp(c3rpipd)*exp(c3lambdaq(+1))/exp(c3lambdaq);

// capital accumultion
exp(c3k)  = (1-c3delta)/c3grmuzss*exp(c3k(-1))+exp(c3zi)*exp(c3i)*(1-c3psii/2*(exp(c3i)/exp(c3i(-1))*c3grmuzss-c3grmuzss)^2);

// final consumption
exp(c3c) = ((c3omegacc)^(c3rhoo/(1+c3rhoo))*exp(c3cne)^(1/(1+c3rhoo))
+(c3omegaoc)^(c3rhoo/(1+c3rhoo))*(exp(c3muo)*exp(c3oc))^(1/(1+c3rhoo)))^(1+c3rhoo);

// nonoil consumption
exp(c3cne) = ((c3omegac)^(c3rhoc/(1+c3rhoc))*exp(c3cd)^(1/(1+c3rhoc))+(c3omegamc*(exp(c3omegacm)))^(c3rhoc/(1+c3rhoc))*(exp(c3mc))^(1/(1+c3rhoc)))^(1+c3rhoc);

// fonc nonoil consumption
exp(c3rpcpd)*(c3omegacc*exp(c3c)/exp(c3cne))^(c3rhoo/(1+c3rhoo))*(c3omegac*exp(c3cne)/exp(c3cd))^(c3rhoc/(1+c3rhoc)) = 1;

// fonc imports
exp(c3rpmcpd) = exp(c3rpcpd)*(c3omegacc*exp(c3c)/exp(c3cne))^(c3rhoo/(1+c3rhoo))*(c3omegamc*(exp(c3omegacm))*exp(c3cne)/exp(c3mc))^(c3rhoc/(1+c3rhoc));

// fonc oil
exp(c3rpopd) = exp(c3rpcpd) *(c3omegaoc*exp(c3c)/exp(c3muo)/exp(c3oc))^(c3rhoo/(1+c3rhoo))*exp(c3muo);

// investment
exp(c3i) = ((c3omegai)^(c3rhoi/(1+c3rhoi))*exp(c3id)^(1/(1+c3rhoi))+(c3omegami*exp(c3omegaim))^(c3rhoi/(1+c3rhoi))*(exp(c3mi))^(1/(1+c3rhoi)))^(1+c3rhoi);

// fonc domestic investment
exp(c3rpipd)*(c3omegai*exp(c3i)/exp(c3id))^(c3rhoi/(1+c3rhoi)) = 1;

// fonc imported investment
exp(c3rpmipd) = exp(c3rpipd)*(c3omegami*exp(c3omegaim)*exp(c3i)/exp(c3mi))^(c3rhoi/(1+c3rhoi));

// value added
exp(c3v) = ((c3omegak)^(c3rhov/(1+c3rhov))*(exp(c3k(-1))/c3grmuzss)^(1/(1+c3rhov))
+(c3omegal)^(c3rhov/(1+c3rhov))*(exp(c3z)*exp(c3l))^(1/(1+c3rhov)))^(1+c3rhov);

// gross output
exp(c3y) = ((c3omegavy)^(c3rhoo/(1+c3rhoo))*(exp(c3v))^(1/(1+c3rhoo))+(c3omegaoy)^(c3rhoo/(1+c3rhoo))*(exp(c3muo)*exp(c3oy))^(1/(1+c3rhoo)))^(1+c3rhoo);

// fonc capital in production
exp(c3rk) = exp(c3rmcpd)*(c3omegavy*exp(c3y)/exp(c3v))^(c3rhoo/(1+c3rhoo))*(c3omegak*exp(c3v)*c3grmuzss/exp(c3k(-1)))^(c3rhov/(1+c3rhov));

// fonc labor in production 
exp(c3w)/exp(c3z) = exp(c3rmcpd)*(c3omegavy*exp(c3y)/exp(c3v))^(c3rhoo/(1+c3rhoo))*(c3omegal*exp(c3v)/exp(c3z)/exp(c3l))^(c3rhov/(1+c3rhov));

// fonc oil in production 
exp(c3rpopd) = exp(c3rmcpd)*(c3omegaoy*exp(c3y)/exp(c3muo)/exp(c3oy))^(c3rhoo/(1+c3rhoo))*exp(c3muo);

// resource constraint goods
exp(c3yd) = exp(c3cd)+exp(c3id)+exp(c3g)+exp(c3x);

// resource constraint oil 
exp(c3o) = exp(c3oc) + exp(c3oy);

// real interest rate
1/(1+(c3rrs)) = c3beta/c3grmuzss*exp(c3lambdaq(+1))/exp(c3lambdaq);

// imports
exp(c3m) = exp(c3rpmcpd)*exp(c3mc)+exp(c3rpmipd)*exp(c3mi);

// trade balance
(c3tbal) = (exp(c3x)-exp(c3m)+exp(c3rpwopd)*(c3shareyoy*c3yss*exp(c3yo)-exp(c3ow)))/exp(c3yd);

// goods trade balance
(c3gtbal) = (exp(c3x)-exp(c3m))/exp(c3yd);

// government spending
exp(c3g) = c3sharegy*exp(c3yd)*exp(c3shockgy);

// oil inventory equations (old version)
(exp(c3o)) = (exp(c3op))^c3alphaop*(exp(c3os(-1))/c3grmuoss)^(1-c3alphaop);
(exp(c3os)) = (1-c3deltao)/c3grmuoss * exp(c3os(-1)) + (exp(c3oi));
(exp(c3ow)) = (exp(c3op)) + (exp(c3oi));
(exp(c3rpwopd)) = (exp(c3rpopd))*c3alphaop*(exp(c3o))/(exp(c3op));
(exp(c3rpwopd)) = c3beta/c3grmuzss*c3grmuzoss*(exp(c3lambdaq(+1))/exp(c3lambdaq))*(exp(c3rpopd(+1))*(1-c3alphaop)*c3grmuoss*exp(c3o(+1))/(exp(c3os))+ exp(c3rpwopd(+1))*(1-c3deltao)); 



// exogenous variables

c3shockgy = c3rhogy*c3shockgy(-1) + c3scaleshockgyerr*c3shockgyerr;

c3zc = (1+c3rhozc1-c3rhozc2)*c3zc(-1) - c3rhozc1*c3zclag(-1) + c3scalezcerr*c3zcerr;

exp(c3zclag) = exp(c3zc(-1));

c3zi = c3rhozi*c3zi(-1) + c3scalezierr*c3zierr;

c3yo = (1+c3rhoyo1 - c3rhoyo2)*c3yo(-1) - c3rhoyo1*c3lagyo(-1) + c3scaleyoerr*c3yoerr;

exp(c3lagyo) = exp(c3yo(-1));

c3muoc = (1+c3rhomuoc1-c3rhomuoc2)*c3muoc(-1) - c3rhomuoc1*c3lagmuoc(-1)+ c3scalemuocerr*c3muocerr;

exp(c3lagmuoc) = exp(c3muoc(-1));

c3muc = c3rhomuc * c3muc(-1)+ c3scalemucerr*0.01*c3mucerr;

c3omegacm = (1+c3rhoomegacm1-c3rhoomegacm2)*c3omegacm(-1) - c3rhoomegacm1*c3lagomegacm(-1)+ c3scaleomegacmerr*c3omegacmerr;

exp(c3lagomegacm) = exp(c3omegacm(-1));

exp(c3omegaim) = exp(c3omegacm);

c3thetapvar = c3rhothetapvar*c3thetapvar(-1)+c3scalethetapvarerr*c3thetapvarerr;

c3thetawvar = c3rhothetawvar*c3thetawvar(-1)+c3scalethetawvarerr*c3thetawvarerr; 





//////////////////////////////////
// Foreign country bloc 
//////////////////////////////////

// fonc consumption
(exp(c2muc)*exp(c2c)-c2vkappa/c2grmuzss*exp(c2c(-1)))^(-1) = exp(c2lambdaq)*exp(c2rpcpd);

// fonc labor 
exp(c2wdes) = c2chi0*(1-exp(c2l))^(-c2chi)/exp(c2lambdaq);

// fonc investment
1- exp(c2q)*exp(c2zi)*(1-c2psii/2*(exp(c2i)/exp(c2i(-1))*c2grmuzss-c2grmuzss)^2)
+exp(c2q)*exp(c2zi)*exp(c2i)*c2psii*(exp(c2i)/exp(c2i(-1))*c2grmuzss
-c2grmuzss)/exp(c2i(-1))*c2grmuzss-c2beta*exp(c2rpipd(+1))/exp(c2rpipd)*exp(c2lambdaq(+1))/exp(c2lambdaq)                                
*exp(c2q(+1))*exp(c2zi(+1))*exp(c2i(+1))*c2psii*(exp(c2i(+1))/exp(c2i)*c2grmuzss
-c2grmuzss)*exp(c2i(+1))/exp(c2i)^2*c2grmuzss = 0;

// fonc capital
exp(c2q) = c2beta/c2grmuzss/exp(c2rpipd)*exp(c2lambdaq(+1))/exp(c2lambdaq)*exp(c2rk(+1))+(1
-c2delta)*c2beta/c2grmuzss*exp(c2q(+1))*exp(c2rpipd(+1))/exp(c2rpipd)*exp(c2lambdaq(+1))/exp(c2lambdaq);

// capital accumultion
(exp(c2k))  = (1-c2delta)/c2grmuzss*(exp(c2k(-1)))+(exp(c2zi))*(exp(c2i))*(1-c2psii/2*((exp(c2i))/(exp(c2i(-1)))*c2grmuzss-c2grmuzss)^2);

// final consumption
(exp(c2c)) = ((c2omegacc)^(c2rhoo/(1+c2rhoo))*(exp(c2cne))^(1/(1+c2rhoo))
+(c2omegaoc)^(c2rhoo/(1+c2rhoo))*((exp(c2muo))*(exp(c2oc)))^(1/(1+c2rhoo)))^(1+c2rhoo);

// nonoil consumption
(exp(c2cne)) = ((c2omegac)^(c2rhoc/(1+c2rhoc))*(exp(c2cd))^(1/(1+c2rhoc))
+(c2omegamc*(exp(c2omegacm)))^(c2rhoc/(1+c2rhoc))*((exp(c2mc)))^(1/(1+c2rhoc)))^(1+c2rhoc);

// fonc nonoil consumption
(exp(c2rpcpd))*(c2omegacc*(exp(c2c))/(exp(c2cne)))^(c2rhoo/(1+c2rhoo))*(c2omegac*(exp(c2cne))/(exp(c2cd)))^(c2rhoc/(1
+c2rhoc)) = 1;

// fonc imports
(exp(c2rpmcpd)) = (exp(c2rpcpd))*(c2omegacc*(exp(c2c))/(exp(c2cne)))^(c2rhoo/(1+c2rhoo))*(c2omegamc*(exp(c2omegacm))*(exp(c2cne))/(exp(c2mc)))^(c2rhoc/(1
+c2rhoc));

// fonc oil
(exp(c2rpopd)) = (exp(c2rpcpd)) *(c2omegaoc*(exp(c2c))/(exp(c2muo))/(exp(c2oc)))^(c2rhoo/(1+c2rhoo))*(exp(c2muo));

// investment
(exp(c2i)) = ((c2omegai)^(c2rhoi/(1+c2rhoi))*(exp(c2id))^(1/(1+c2rhoi))+(c2omegami*(exp(c2omegaim)))^(c2rhoi/(1
+c2rhoi))*((exp(c2mi)))^(1/(1+c2rhoi)))^(1+c2rhoi);

// fonc domestic investment
(exp(c2rpipd))*(c2omegai*(exp(c2i))/(exp(c2id)))^(c2rhoi/(1+c2rhoi)) = 1;

// fonc imported investment
(exp(c2rpmipd)) = (exp(c2rpipd))*(c2omegami*(exp(c2omegaim))*(exp(c2i))/(exp(c2mi)))^(c2rhoi/(1+c2rhoi));

// value added
(exp(c2v)) = ((c2omegak)^(c2rhov/(1+c2rhov))*((exp(c2k(-1)))/c2grmuzss)^(1/(1+c2rhov))
+(c2omegal)^(c2rhov/(1+c2rhov))*((exp(c2z))*(exp(c2l)))^(1/(1+c2rhov)))^(1+c2rhov);

// gross output
(exp(c2y)) = ((c2omegavy)^(c2rhoo/(1+c2rhoo))*((exp(c2v)))^(1/(1+c2rhoo))+(c2omegaoy)^(c2rhoo/(1
+c2rhoo))*((exp(c2muo))*(exp(c2oy)))^(1/(1+c2rhoo)))^(1+c2rhoo);

// fonc capital in production 
(exp(c2rk)) = (exp(c2rmcpd))*(c2omegavy*(exp(c2y))/(exp(c2v)))^(c2rhoo/(1+c2rhoo))*(c2omegak*(exp(c2v))*c2grmuzss/(exp(c2k(-1))))^(c2rhov/(1
+c2rhov));

// fonc labor in production  
(exp(c2w))/(exp(c2z)) = (exp(c2rmcpd))*(c2omegavy*(exp(c2y))/(exp(c2v)))^(c2rhoo/(1+c2rhoo))*(c2omegal*(exp(c2v))/(exp(c2z))/(exp(c2l)))^(c2rhov/(1+c2rhov));

// fonc oil in production 
(exp(c2rpopd)) = (exp(c2rmcpd))*(c2omegaoy*(exp(c2y))/(exp(c2muo))/(exp(c2oy)))^(c2rhoo/(1+c2rhoo))*(exp(c2muo));

// resource constraint goods
(exp(c2yd)) = (exp(c2cd))+(exp(c2id))+(exp(c2g))+(exp(c2x));

// resource constraint oil 
(exp(c2o)) = (exp(c2oc)) + (exp(c2oy));

// real interest rate
1/(1+(c2rrs)) = c2beta/c2grmuzss*(exp(c2lambdaq(+1)))/(exp(c2lambdaq));

// imports
(exp(c2m)) = (exp(c2rpmcpd))*(exp(c2mc))+(exp(c2rpmipd))*(exp(c2mi));

// trade balance
(c2tbal) = ((exp(c2x))-(exp(c2m))+(exp(c2rpwopd))*(c2shareyoy*c2yss*(exp(c2yo))-(exp(c2ow))))/(exp(c2yd));

// goods trade balance
(c2gtbal) = ((exp(c2x))-(exp(c2m)))/(exp(c2yd));


// government spending
(exp(c2g)) = c2sharegy*(exp(c2yd))*(exp(c2shockgy));

// oil inventory equations (old version)
(exp(c2o)) = (exp(c2op))^c2alphaop*(exp(c2os(-1))/c2grmuoss)^(1-c2alphaop);
(exp(c2os)) = (1-c2deltao)/c2grmuoss * exp(c2os(-1)) + (exp(c2oi));
(exp(c2ow)) = (exp(c2op)) + (exp(c2oi));
(exp(c2rpwopd)) = (exp(c2rpopd))*c2alphaop*(exp(c2o))/(exp(c2op));
(exp(c2rpwopd)) = c2beta/c2grmuzss*c2grmuzoss*(exp(c2lambdaq(+1))/exp(c2lambdaq))*(exp(c2rpopd(+1))*(1-c2alphaop)*c2grmuoss*exp(c2o(+1))/(exp(c2os))+ exp(c2rpwopd(+1))*(1-c2deltao));

// exogenous variables
c2shockgy = c2rhogy*c2shockgy(-1) + c2scaleshockgyerr*c2shockgyerr;

c2zc = (1+c2rhozc1-c2rhozc2)*c2zc(-1) - c2rhozc1*c2zclag(-1) + c2scalezcerr*c2zcerr;

exp(c2zclag) = exp(c2zc(-1));

c2zi = c2rhozi*c2zi(-1) + c2scalezierr*c2zierr;

c2yo = (1+c2rhoyo1-c2rhoyo2)*c2yo(-1) - c2rhoyo1*c2lagyo(-1) + c2scaleyoerr*c2yoerr;

exp(c2lagyo) = exp(c2yo(-1));

c2muoc = (1+c2rhomuoc1-c2rhomuoc2)*c2muoc(-1) - c2rhomuoc1*c2lagmuoc(-1)+ c2scalemuocerr*c2muocerr;

exp(c2lagmuoc) = exp(c2muoc(-1));

c2muc = c2rhomuc * c2muc(-1)+ c2scalemucerr*0.01*c2mucerr;

c2omegacm = (1+c2rhoomegacm1-c2rhoomegacm2)*c2omegacm(-1) - c2rhoomegacm1*c2lagomegacm(-1)+ c2scaleomegacmerr*c2omegacmerr;

exp(c2lagomegacm) = exp(c2omegacm(-1));

exp(c2omegaim) = exp(c2omegacm);

c2thetapvar = c2rhothetapvar*c2thetapvar(-1)+c2scalethetapvarerr*c2thetapvarerr;

c2thetawvar = c2rhothetawvar*c2thetawvar(-1)+c2scalethetawvarerr*c2thetawvarerr;


////////////////////////
// international links
////////////////////////

// risk sharing
//(exp(c2lambdaq(+1)))/(exp(c2lambdaq))*(exp(c2rpcpd(+1)))/(exp(c2rpcpd)) = (exp(-c1phibparm*(c1b)))*(exp(c1rer(+1)))/(exp(c1rer))*(exp(c1lambdaq(+1)))/(exp(c1lambdaq))*(exp(c1rpcpd(+1)))/(exp(c1rpcpd));

// international oil market Japan Oil production must be zero     
//c3shareyoy*c3yss*(exp(c3yo))*c3relc2 + c2shareyoy*c2yss*(exp(c2yo))+c1shareyoy*c1yss*(exp(c1yo))*c1relc2  = (exp(c2ow)) + (exp(c1ow))*c1relc2;

// price of oil abroad
//(exp(c1rpwopd)) = (exp(c1rer))*(exp(c1rpcpd))/(exp(c2rpcpd))*(exp(c2rpwopd));

// international asset positions
//(exp(c1rer))/(exp(c1rer(+1)))*(exp(c1rpcpd))/(exp(c1rpcpd(+1)))*(exp(c2rpcpd(+1)))/(exp(c2rpcpd))*c2beta/c2grmuzss*(exp(c2lambdaq(+1)))/(exp(c2lambdaq))/(exp(-c1phibparm*(c1b(-1))))*(exp(c1yd(+1)))/(exp(c1yd))*c1grmuzss*(c1b) = (c1b(-1))+(c1tbal);

// producer currency pricing home
//(exp(c1rpmcpd)) = (exp(c1rer))*(exp(c1rpcpd))/(exp(c2rpcpd));

// producer currency pricing forein
//(exp(c2rpmcpd)) = 1/(exp(c1rer))*(exp(c2rpcpd))/(exp(c1rpcpd));

// import prices home 
//(exp(c1rpmipd)) = (exp(c1rpmcpd));


// import prices foreign
//(exp(c2rpmipd)) = (exp(c2rpmcpd));

// home exports
//(exp(c1x))  = 1/c1relc2*(exp(c2mc)+exp(c2mi));

// foreign exports
//(exp(c2x))  = c1relc2*(exp(c1mc)+exp(c1mi));


////////////////////////
// international shocks US
////////////////////////

exp(c1z) = exp(c1zc)*exp(c1zw);

exp(c2z) = exp(c2zc)*exp(c1zw);

c1zw = (1+c1rhozw1-c1rhozw2)*c1zw(-1) - c1rhozw1*c1zwlag(-1) + c1scalezwerr*c1zwerr;

exp(c1zwlag) = exp(c1zw(-1));

exp(c1muo) = exp(c1muoc)*exp(c1muow);

exp(c2muo) = exp(c2muoc)*exp(c1muow);

c1muow = (1+c1rhomuow1-c1rhomuow2)*c1muow(-1) - c1rhomuow1*c1muowlag(-1)+ c1scalemuowerr*c1muowerr;

exp(c1muowlag) = exp(c1muow(-1));



////////////////////////
// international shocks JP
////////////////////////
exp(c3z) = exp(c3zc)*exp(c3zw);

exp(c2z) = exp(c2zc)*exp(c3zw);

c3zw = (1+c3rhozw1-c3rhozw2)*c3zw(-1) - c3rhozw1*c3zwlag(-1) + c3scalezwerr*c3zwerr;

exp(c3zwlag) = exp(c3zw(-1));

exp(c3muo) = exp(c3muoc)*exp(c3muow);

exp(c2muo) = exp(c2muoc)*exp(c3muow);

c3muow = (1+c3rhomuow1-c3rhomuow2)*c3muow(-1) - c3rhomuow1*c3muowlag(-1)+ c3scalemuowerr*c3muowerr;

exp(c3muowlag) = exp(c3muow(-1));


//////////////////////////////////
// US country bloc potential
//////////////////////////////////

// fonc consumption
((exp(c1muc))*(exp(c1c_pot))-c1vkappa/c1grmuzss*(exp(c1c_pot(-1))))^(-1) = (exp(c1lambdaq_pot))*(exp(c1rpcpd_pot));

// fonc labor
exp(c1wdes_pot) =  c1chi0*(1-exp(c1l_pot))^(-c1chi)/exp(c1lambdaq_pot);

// wages and marginal rate of substitution
exp(c1wdes_pot)/exp(c1w_pot) = (1+c1tauw)/(1+c1thetaw*(exp(c1thetawvar)));

// fonc investment
1- (exp(c1q_pot))*(exp(c1zi))*(1-c1psii/2*((exp(c1i_pot))/(exp(c1i_pot(-1)))*c1grmuzss-c1grmuzss)^2)
+(exp(c1q_pot))*(exp(c1zi))*(exp(c1i_pot))*c1psii*((exp(c1i_pot))/(exp(c1i_pot(-1)))*c1grmuzss-c1grmuzss)/(exp(c1i_pot(-1)))*c1grmuzss
-c1beta*(exp(c1rpipd_pot(+1)))/(exp(c1rpipd_pot))*(exp(c1lambdaq_pot(+1)))/(exp(c1lambdaq_pot))   
*(exp(c1q_pot(+1)))*(exp(c1zi(+1)))*(exp(c1i_pot(+1)))*c1psii*((exp(c1i_pot(+1)))/(exp(c1i_pot))*c1grmuzss
-c1grmuzss)*(exp(c1i_pot(+1)))/(exp(c1i_pot))^2*c1grmuzss = 0;

// fonc capital
(exp(c1q_pot)) = c1beta/c1grmuzss/(exp(c1rpipd_pot))*(exp(c1lambdaq_pot(+1)))/(exp(c1lambdaq_pot))*(exp(c1rk_pot(+1)))+(1
-c1delta)*c1beta/c1grmuzss*(exp(c1q_pot(+1)))*(exp(c1rpipd_pot(+1)))/(exp(c1rpipd_pot))*(exp(c1lambdaq_pot(+1)))/(exp(c1lambdaq_pot));

// capital accumultion
exp(c1k_pot)  = (1-c1delta)/c1grmuzss*exp(c1k_pot(-1))+exp(c1zi)*exp(c1i_pot)*(1-c1psii/2*(exp(c1i_pot)/exp(c1i_pot(-1))*c1grmuzss-c1grmuzss)^2);

// final consumption
exp(c1c_pot) = ((c1omegacc)^(c1rhoo/(1+c1rhoo))*exp(c1cne_pot)^(1/(1+c1rhoo))
+ (c1omegaoc)^(c1rhoo/(1+c1rhoo))*(exp(c1muo)*exp(c1oc_pot))^(1/(1+c1rhoo)))^(1+c1rhoo);

// nonoil consumption
exp(c1cne_pot) =  ((c1omegac)^(c1rhoc/(1+c1rhoc))*exp(c1cd_pot)^(1/(1+c1rhoc))+(c1omegamc*exp(c1omegacm))^(c1rhoc/(1+c1rhoc))*(exp(c1mc_pot))^(1/(1+c1rhoc)))^(1+c1rhoc);

// fonc nonoil consumption
exp(c1rpcpd_pot)*(c1omegacc*exp(c1c_pot)/exp(c1cne_pot))^(c1rhoo/(1+c1rhoo))*(c1omegac*exp(c1cne_pot)/exp(c1cd_pot))^(c1rhoc/(1+c1rhoc)) = 1;

// fonc imports
exp(c1rpmcpd_pot) = exp(c1rpcpd_pot)*(c1omegacc*exp(c1c_pot)/exp(c1cne_pot))^(c1rhoo/(1+c1rhoo))*(c1omegamc*exp(c1omegacm)*exp(c1cne_pot)/exp(c1mc_pot))^(c1rhoc/(1+c1rhoc));

// fonc oil
exp(c1rpopd_pot) = exp(c1rpcpd_pot) *(c1omegaoc*exp(c1c_pot)/exp(c1muo)/exp(c1oc_pot))^(c1rhoo/(1+c1rhoo))*exp(c1muo);

// investment
exp(c1i_pot) = ((c1omegai)^(c1rhoi/(1+c1rhoi))*exp(c1id_pot)^(1/(1+c1rhoi))+(c1omegami*exp(c1omegaim))^(c1rhoi/(1+c1rhoi))*(exp(c1mi_pot))^(1/(1+c1rhoi)))^(1+c1rhoi);

// fonc domestic investment
exp(c1rpipd_pot)*(c1omegai*exp(c1i_pot)/exp(c1id_pot))^(c1rhoi/(1+c1rhoi)) = 1;

// fonc imported investment
exp(c1rpmipd_pot) = exp(c1rpipd_pot)*(c1omegami*exp(c1omegaim)*exp(c1i_pot)/exp(c1mi_pot))^(c1rhoi/(1+c1rhoi));

// value added
exp(c1v_pot) = ((c1omegak)^(c1rhov/(1+c1rhov))*(exp(c1k_pot(-1))/c1grmuzss)^(1/(1+c1rhov))
+(c1omegal)^(c1rhov/(1+c1rhov))*(exp(c1z)*exp(c1l_pot))^(1/(1+c1rhov)))^(1+c1rhov);

// gross output
exp(c1y_pot) = ((c1omegavy)^(c1rhoo/(1+c1rhoo))*(exp(c1v_pot))^(1/(1+c1rhoo))+(c1omegaoy)^(c1rhoo/(1+c1rhoo))*(exp(c1muo)*exp(c1oy_pot))^(1/(1+c1rhoo)))^(1+c1rhoo);

// fonc capital in production
exp(c1rk_pot) = exp(c1rmcpd_pot)*(c1omegavy*exp(c1y_pot)/exp(c1v_pot))^(c1rhoo/(1+c1rhoo))*(c1omegak*exp(c1v_pot)*c1grmuzss/exp(c1k_pot(-1)))^(c1rhov/(1+c1rhov));

// fonc labor in production 
exp(c1w_pot)/exp(c1z) = exp(c1rmcpd_pot)*(c1omegavy*exp(c1y_pot)/exp(c1v_pot))^(c1rhoo/(1+c1rhoo))*(c1omegal*exp(c1v_pot)/exp(c1z)/exp(c1l_pot))^(c1rhov/(1+c1rhov));

// fonc oil in production 
exp(c1rpopd_pot) = exp(c1rmcpd_pot)*(c1omegaoy*exp(c1y_pot)/exp(c1muo)/exp(c1oy_pot))^(c1rhoo/(1+c1rhoo))*exp(c1muo);

// marginal costs
exp(c1rmcpd_pot) = (1+c1taup)/(1+c1thetap*exp(c1thetapvar));

// absence of price dispersion
exp(c1y_pot) = exp(c1yd_pot);

// resource constraint goods
exp(c1yd_pot) = exp(c1cd_pot)+exp(c1id_pot)+exp(c1g_pot)+exp(c1x_pot);

// resource constraint oil 
exp(c1o_pot) = exp(c1oc_pot) + exp(c1oy_pot);

// real interest rate
1/(1+c1rrs_pot) = c1beta/c1grmuzss*exp(c1lambdaq_pot(+1))/exp(c1lambdaq_pot);

// imports
exp(c1m_pot) = exp(c1rpmcpd_pot)*exp(c1mc_pot)+exp(c1rpmipd_pot)*exp(c1mi_pot);

// trade balance
c1tbal_pot = (exp(c1x_pot)-exp(c1m_pot)+exp(c1rpwopd_pot)*(c1shareyoy*c1yss*exp(c1yo)-exp(c1ow_pot)))/exp(c1yd_pot);

// government spending
exp(c1g_pot) = c1sharegy*exp(c1yd_pot)*exp(c1shockgy);

// oil inventory equations (old version)
(exp(c1o_pot)) = (exp(c1op_pot))^c1alphaop*(exp(c1os_pot(-1))/c1grmuoss)^(1-c1alphaop);
(exp(c1os_pot)) = (1-c1deltao)/c1grmuoss * exp(c1os_pot(-1)) + (exp(c1oi_pot));
(exp(c1ow_pot)) = (exp(c1op_pot)) + (exp(c1oi_pot));
(exp(c1rpwopd_pot)) = (exp(c1rpopd_pot))*c1alphaop*(exp(c1o_pot))/(exp(c1op_pot));
(exp(c1rpwopd_pot)) = c1beta/c1grmuzss*c1grmuzoss*(exp(c1lambdaq_pot(+1))/exp(c1lambdaq_pot))*(exp(c1rpopd_pot(+1))*(1-c1alphaop)*c1grmuoss*exp(c1o_pot(+1))/(exp(c1os_pot))+ exp(c1rpwopd_pot(+1))*(1-c1deltao));



//////////////////////////////////
// JP country bloc potential
//////////////////////////////////

 // fonc consumption
((exp(c3muc))*(exp(c3c_pot))-c3vkappa/c3grmuzss*(exp(c3c_pot(-1))))^(-1) = (exp(c3lambdaq_pot))*(exp(c3rpcpd_pot));

// fonc labor
exp(c3wdes_pot) =  c3chi0*(1-exp(c3l_pot))^(-c3chi)/exp(c3lambdaq_pot);

// wages and marginal rate of substitution
exp(c3wdes_pot)/exp(c3w_pot) = (1+c3tauw)/(1+c3thetaw*(exp(c3thetawvar)));

// fonc investment
1- (exp(c3q_pot))*(exp(c3zi))*(1-c3psii/2*((exp(c3i_pot))/(exp(c3i_pot(-1)))*c3grmuzss-c3grmuzss)^2)
+(exp(c3q_pot))*(exp(c3zi))*(exp(c3i_pot))*c3psii*((exp(c3i_pot))/(exp(c3i_pot(-1)))*c3grmuzss-c3grmuzss)/(exp(c3i_pot(-1)))*c3grmuzss
-c3beta*(exp(c3rpipd_pot(+1)))/(exp(c3rpipd_pot))*(exp(c3lambdaq_pot(+1)))/(exp(c3lambdaq_pot))   
*(exp(c3q_pot(+1)))*(exp(c3zi(+1)))*(exp(c3i_pot(+1)))*c3psii*((exp(c3i_pot(+1)))/(exp(c3i_pot))*c3grmuzss
-c3grmuzss)*(exp(c3i_pot(+1)))/(exp(c3i_pot))^2*c3grmuzss = 0;

// fonc capital
(exp(c3q_pot)) = c3beta/c3grmuzss/(exp(c3rpipd_pot))*(exp(c3lambdaq_pot(+1)))/(exp(c3lambdaq_pot))*(exp(c3rk_pot(+1)))+(1
-c3delta)*c3beta/c3grmuzss*(exp(c3q_pot(+1)))*(exp(c3rpipd_pot(+1)))/(exp(c3rpipd_pot))*(exp(c3lambdaq_pot(+1)))/(exp(c3lambdaq_pot));

// capital accumultion
exp(c3k_pot)  = (1-c3delta)/c3grmuzss*exp(c3k_pot(-1))+exp(c3zi)*exp(c3i_pot)*(1-c3psii/2*(exp(c3i_pot)/exp(c3i_pot(-1))*c3grmuzss-c3grmuzss)^2);

// final consumption
exp(c3c_pot) = ((c3omegacc)^(c3rhoo/(1+c3rhoo))*exp(c3cne_pot)^(1/(1+c3rhoo))
+ (c3omegaoc)^(c3rhoo/(1+c3rhoo))*(exp(c3muo)*exp(c3oc_pot))^(1/(1+c3rhoo)))^(1+c3rhoo);

// nonoil consumption
exp(c3cne_pot) =  ((c3omegac)^(c3rhoc/(1+c3rhoc))*exp(c3cd_pot)^(1/(1+c3rhoc))+(c3omegamc*exp(c3omegacm))^(c3rhoc/(1+c3rhoc))*(exp(c3mc_pot))^(1/(1+c3rhoc)))^(1+c3rhoc);

// fonc nonoil consumption
exp(c3rpcpd_pot)*(c3omegacc*exp(c3c_pot)/exp(c3cne_pot))^(c3rhoo/(1+c3rhoo))*(c3omegac*exp(c3cne_pot)/exp(c3cd_pot))^(c3rhoc/(1+c3rhoc)) = 1;

// fonc imports
exp(c3rpmcpd_pot) = exp(c3rpcpd_pot)*(c3omegacc*exp(c3c_pot)/exp(c3cne_pot))^(c3rhoo/(1+c3rhoo))*(c3omegamc*exp(c3omegacm)*exp(c3cne_pot)/exp(c3mc_pot))^(c3rhoc/(1+c3rhoc));

// fonc oil
exp(c3rpopd_pot) = exp(c3rpcpd_pot) *(c3omegaoc*exp(c3c_pot)/exp(c3muo)/exp(c3oc_pot))^(c3rhoo/(1+c3rhoo))*exp(c3muo);

// investment
exp(c3i_pot) = ((c3omegai)^(c3rhoi/(1+c3rhoi))*exp(c3id_pot)^(1/(1+c3rhoi))+(c3omegami*exp(c3omegaim))^(c3rhoi/(1+c3rhoi))*(exp(c3mi_pot))^(1/(1+c3rhoi)))^(1+c3rhoi);

// fonc domestic investment
exp(c3rpipd_pot)*(c3omegai*exp(c3i_pot)/exp(c3id_pot))^(c3rhoi/(1+c3rhoi)) = 1;

// fonc imported investment
exp(c3rpmipd_pot) = exp(c3rpipd_pot)*(c3omegami*exp(c3omegaim)*exp(c3i_pot)/exp(c3mi_pot))^(c3rhoi/(1+c3rhoi));

// value added
exp(c3v_pot) = ((c3omegak)^(c3rhov/(1+c3rhov))*(exp(c3k_pot(-1))/c3grmuzss)^(1/(1+c3rhov))
+(c3omegal)^(c3rhov/(1+c3rhov))*(exp(c3z)*exp(c3l_pot))^(1/(1+c3rhov)))^(1+c3rhov);

// gross output
exp(c3y_pot) = ((c3omegavy)^(c3rhoo/(1+c3rhoo))*(exp(c3v_pot))^(1/(1+c3rhoo))+(c3omegaoy)^(c3rhoo/(1+c3rhoo))*(exp(c3muo)*exp(c3oy_pot))^(1/(1+c3rhoo)))^(1+c1rhoo);

// fonc capital in production
exp(c3rk_pot) = exp(c3rmcpd_pot)*(c3omegavy*exp(c3y_pot)/exp(c3v_pot))^(c3rhoo/(1+c3rhoo))*(c3omegak*exp(c3v_pot)*c3grmuzss/exp(c3k_pot(-1)))^(c3rhov/(1+c3rhov));

// fonc labor in production 
exp(c3w_pot)/exp(c3z) = exp(c3rmcpd_pot)*(c3omegavy*exp(c3y_pot)/exp(c3v_pot))^(c3rhoo/(1+c3rhoo))*(c3omegal*exp(c3v_pot)/exp(c3z)/exp(c3l_pot))^(c3rhov/(1+c3rhov));

// fonc oil in production 
exp(c3rpopd_pot) = exp(c3rmcpd_pot)*(c3omegaoy*exp(c3y_pot)/exp(c3muo)/exp(c3oy_pot))^(c3rhoo/(1+c3rhoo))*exp(c3muo);

// marginal costs
exp(c3rmcpd_pot) = (1+c3taup)/(1+c3thetap*exp(c3thetapvar));

// absence of price dispersion
exp(c3y_pot) = exp(c3yd_pot);

// resource constraint goods
exp(c3yd_pot) = exp(c3cd_pot)+exp(c3id_pot)+exp(c3g_pot)+exp(c3x_pot);

// resource constraint oil 
exp(c3o_pot) = exp(c3oc_pot) + exp(c3oy_pot);

// real interest rate
1/(1+c3rrs_pot) = c3beta/c3grmuzss*exp(c3lambdaq_pot(+1))/exp(c3lambdaq_pot);

// imports
exp(c3m_pot) = exp(c3rpmcpd_pot)*exp(c3mc_pot)+exp(c3rpmipd_pot)*exp(c3mi_pot);

// trade balance
c3tbal_pot = (exp(c3x_pot)-exp(c3m_pot)+exp(c3rpwopd_pot)*(c3shareyoy*c3yss*exp(c3yo)-exp(c3ow_pot)))/exp(c3yd_pot);

// government spending
exp(c3g_pot) = c3sharegy*exp(c3yd_pot)*exp(c3shockgy);

// oil inventory equations (old version)
(exp(c3o_pot)) = (exp(c3op_pot))^c3alphaop*(exp(c3os_pot(-1))/c3grmuoss)^(1-c3alphaop);
(exp(c3os_pot)) = (1-c3deltao)/c3grmuoss * exp(c3os_pot(-1)) + (exp(c3oi_pot));
(exp(c3ow_pot)) = (exp(c3op_pot)) + (exp(c3oi_pot));
(exp(c3rpwopd_pot)) = (exp(c3rpopd_pot))*c3alphaop*(exp(c3o_pot))/(exp(c3op_pot));
(exp(c3rpwopd_pot)) = c3beta/c3grmuzss*c3grmuzoss*(exp(c3lambdaq_pot(+1))/exp(c3lambdaq_pot))*(exp(c3rpopd_pot(+1))*(1-c3alphaop)*c3grmuoss*exp(c3o_pot(+1))/(exp(c3os_pot))+ exp(c3rpwopd_pot(+1))*(1-c3deltao));


//////////////////////////////////
// Foreign country bloc potential
//////////////////////////////////

// fonc consumption
((exp(c2muc))*(exp(c2c_pot))-c2vkappa/c2grmuzss*(exp(c2c_pot(-1))))^(-1) = (exp(c2lambdaq_pot))*(exp(c2rpcpd_pot));

// fonc labor 
exp(c2wdes_pot) =  c2chi0*(1-exp(c2l_pot))^(-c2chi)/exp(c2lambdaq_pot);

// wages and marginal rate of substitution
exp(c2wdes_pot)/exp(c2w_pot) = (1+c2tauw)/(1+c2thetaw*(exp(c2thetawvar)));

// fonc investment
1- (exp(c2q_pot))*(exp(c2zi))*(1-c2psii/2*((exp(c2i_pot))/(exp(c2i_pot(-1)))*c2grmuzss-c2grmuzss)^2)
+(exp(c2q_pot))*(exp(c2zi))*(exp(c2i_pot))*c2psii*((exp(c2i_pot))/(exp(c2i_pot(-1)))*c2grmuzss
-c2grmuzss)/(exp(c2i_pot(-1)))*c2grmuzss-c2beta*(exp(c2rpipd_pot(+1)))/(exp(c2rpipd_pot))*(exp(c2lambdaq_pot(+1)))/(exp(c2lambdaq_pot))   
*(exp(c2q_pot(+1)))*(exp(c2zi(+1)))*(exp(c2i_pot(+1)))*c2psii*((exp(c2i_pot(+1)))/(exp(c2i_pot))*c2grmuzss
-c2grmuzss)*(exp(c2i_pot(+1)))/(exp(c2i_pot))^2*c2grmuzss = 0;

// fonc capital
(exp(c2q_pot)) = c2beta/c2grmuzss/(exp(c2rpipd_pot))*(exp(c2lambdaq_pot(+1)))/(exp(c2lambdaq_pot))*(exp(c2rk_pot(+1)))+(1
-c2delta)*c2beta/c2grmuzss*(exp(c2q_pot(+1)))*(exp(c2rpipd_pot(+1)))/(exp(c2rpipd_pot))*(exp(c2lambdaq_pot(+1)))/(exp(c2lambdaq_pot));

// capital accumulation
exp(c2k_pot)  = (1-c2delta)/c2grmuzss*exp(c2k_pot(-1))+exp(c2zi)*exp(c2i_pot)*(1-c2psii/2*(exp(c2i_pot)/exp(c2i_pot(-1))*c2grmuzss-c2grmuzss)^2);

// final consumption
exp(c2c_pot) = ((c2omegacc)^(c2rhoo/(1+c2rhoo))*exp(c2cne_pot)^(1/(1+c2rhoo))
+ (c2omegaoc)^(c2rhoo/(1+c2rhoo))*(exp(c2muo)*exp(c2oc_pot))^(1/(1+c2rhoo)))^(1+c2rhoo);

// nonoil consumption
exp(c2cne_pot) =  ((c2omegac)^(c2rhoc/(1+c2rhoc))*exp(c2cd_pot)^(1/(1+c2rhoc))+(c2omegamc*exp(c2omegacm))^(c2rhoc/(1+c2rhoc))*(exp(c2mc_pot))^(1/(1+c2rhoc)))^(1+c2rhoc);

// fonc nonoil consumption
exp(c2rpcpd_pot)*(c2omegacc*exp(c2c_pot)/exp(c2cne_pot))^(c2rhoo/(1+c2rhoo))*(c2omegac*exp(c2cne_pot)/exp(c2cd_pot))^(c2rhoc/(1+c2rhoc)) = 1;

// fonc imports
exp(c2rpmcpd_pot) = exp(c2rpcpd_pot)*(c2omegacc*exp(c2c_pot)/exp(c2cne_pot))^(c2rhoo/(1+c2rhoo))*(c2omegamc*exp(c2omegacm)*exp(c2cne_pot)/exp(c2mc_pot))^(c2rhoc/(1+c2rhoc));

// fonc oil
exp(c2rpopd_pot) = exp(c2rpcpd_pot) *(c2omegaoc*exp(c2c_pot)/exp(c2muo)/exp(c2oc_pot))^(c2rhoo/(1+c2rhoo))*exp(c2muo);

// investment
exp(c2i_pot) = ((c2omegai)^(c2rhoi/(1+c2rhoi))*exp(c2id_pot)^(1/(1+c2rhoi))+(c2omegami*exp(c2omegaim))^(c2rhoi/(1+c2rhoi))*(exp(c2mi_pot))^(1/(1+c2rhoi)))^(1+c2rhoi);

// fonc domestic investment
exp(c2rpipd_pot)*(c2omegai*exp(c2i_pot)/exp(c2id_pot))^(c2rhoi/(1+c2rhoi)) = 1;

// fonc imported investment
exp(c2rpmipd_pot) = exp(c2rpipd_pot)*(c2omegami*exp(c2omegaim)*exp(c2i_pot)/exp(c2mi_pot))^(c2rhoi/(1+c2rhoi));

// value added
exp(c2v_pot) = ((c2omegak)^(c2rhov/(1+c2rhov))*(exp(c2k_pot(-1))/c2grmuzss)^(1/(1+c2rhov))
+(c2omegal)^(c2rhov/(1+c2rhov))*(exp(c2z)*exp(c2l_pot))^(1/(1+c2rhov)))^(1+c2rhov);

// gross output
exp(c2y_pot) = ((c2omegavy)^(c2rhoo/(1+c2rhoo))*(exp(c2v_pot))^(1/(1+c2rhoo))+(c2omegaoy)^(c2rhoo/(1+c2rhoo))*(exp(c2muo)*exp(c2oy_pot))^(1/(1+c2rhoo)))^(1+c2rhoo);

// fonc capital in production
exp(c2rk_pot) = exp(c2rmcpd_pot)*(c2omegavy*exp(c2y_pot)/exp(c2v_pot))^(c2rhoo/(1+c2rhoo))*(c2omegak*exp(c2v_pot)*c2grmuzss/exp(c2k_pot(-1)))^(c2rhov/(1+c2rhov));

// fonc labor in production 
exp(c2w_pot)/exp(c2z) = exp(c2rmcpd_pot)*(c2omegavy*exp(c2y_pot)/exp(c2v_pot))^(c2rhoo/(1+c2rhoo))*(c2omegal*exp(c2v_pot)/exp(c2z)/exp(c2l_pot))^(c2rhov/(1+c2rhov));

// fonc oil in production 
exp(c2rpopd_pot) = exp(c2rmcpd_pot)*(c2omegaoy*exp(c2y_pot)/exp(c2muo)/exp(c2oy_pot))^(c2rhoo/(1+c2rhoo))*exp(c2muo);

// marginal costs
exp(c2rmcpd_pot) = (1+c2taup)/(1+c2thetap*exp(c2thetapvar));

// absence of price dispersion
exp(c2y_pot) = exp(c2yd_pot);

// resource constraint goods
exp(c2yd_pot) = exp(c2cd_pot)+exp(c2id_pot)+exp(c2g_pot)+exp(c2x_pot);

// resource constraint oil 
exp(c2o_pot) = exp(c2oc_pot) + exp(c2oy_pot);

// real interest rate
1/(1+c2rrs_pot) = c2beta/c2grmuzss*exp(c2lambdaq_pot(+1))/exp(c2lambdaq_pot);

// imports
exp(c2m_pot) = exp(c2rpmcpd_pot)*exp(c2mc_pot)+exp(c2rpmipd_pot)*exp(c2mi_pot);

// trade balance
c2tbal_pot = (exp(c2x_pot)-exp(c2m_pot)+exp(c2rpwopd_pot)*(c2shareyoy*c2yss*exp(c2yo)-exp(c2ow_pot)))/exp(c2yd_pot);

// government spending
exp(c2g_pot) = c2sharegy*exp(c2yd_pot)*exp(c2shockgy);

// oil inventory equations (old version)
(exp(c2o_pot)) = (exp(c2op_pot))^c2alphaop*(exp(c2os_pot(-1))/c2grmuoss)^(1-c2alphaop);
(exp(c2os_pot)) = (1-c2deltao)/c2grmuoss * exp(c2os_pot(-1)) + (exp(c2oi_pot));
(exp(c2ow_pot)) = (exp(c2op_pot)) + (exp(c2oi_pot));
(exp(c2rpwopd_pot)) = (exp(c2rpopd_pot))*c2alphaop*(exp(c2o_pot))/(exp(c2op_pot));
(exp(c2rpwopd_pot)) = c2beta/c2grmuzss*c2grmuzoss*(exp(c2lambdaq_pot(+1))/exp(c2lambdaq_pot))*(exp(c2rpopd_pot(+1))*(1-c2alphaop)*c2grmuoss*exp(c2o_pot(+1))/(exp(c2os_pot))+ exp(c2rpwopd_pot(+1))*(1-c2deltao));


////////////////////////
// international links
////////////////////////

// risk sharing
exp(c2lambdaq_pot(+1))/exp(c2lambdaq_pot)*exp(c2rpcpd_pot(+1))/exp(c2rpcpd_pot) =
(exp(-c1phibparm*c1b_pot))*exp(c1rer_pot(+1))/exp(c1rer_pot)*exp(c1lambdaq_pot(+1))/exp(c1lambdaq_pot)*exp(c1rpcpd_pot(+1))/exp(c1rpcpd_pot);

exp(c2lambdaq_pot(+1))/exp(c2lambdaq_pot)*exp(c2rpcpd_pot(+1))/exp(c2rpcpd_pot) =
(exp(-c3phibparm*c3b_pot))*exp(c3rer_pot(+1))/exp(c3rer_pot)*exp(c3lambdaq_pot(+1))/exp(c3lambdaq_pot)*exp(c3rpcpd_pot(+1))/exp(c3rpcpd_pot);

// international oil market Production in Japan must be zero
c3shareyoy*c3yss*exp(c3yo)*c3relc2 + c2shareyoy*c2yss*exp(c2yo)+c1shareyoy*c1yss*exp(c1yo)*c1relc2  = exp(c2ow_pot) + exp(c1ow_pot)*c1relc2;


// price of oil abroad
exp(c1rpwopd_pot) = exp(c1rer_pot)*exp(c1rpcpd_pot)/exp(c2rpcpd_pot)*exp(c2rpwopd_pot);
exp(c3rpwopd_pot) = exp(c3rer_pot)*exp(c3rpcpd_pot)/exp(c2rpcpd_pot)*exp(c2rpwopd_pot);


// international asset positions
exp(c1rer_pot)/exp(c1rer_pot(+1))*exp(c1rpcpd_pot)/exp(c1rpcpd_pot(+1))*exp(c2rpcpd_pot(+1))/exp(c2rpcpd_pot)*c2beta/c2grmuzss
*exp(c2lambdaq_pot(+1))/exp(c2lambdaq_pot)/(exp(-c1phibparm*c1b_pot(-1)))*exp(c1y_pot(+1))/exp(c1yd_pot)*c1grmuzss*c1b_pot = c1b_pot(-1)+c1tbal_pot;


 exp(c3rer_pot)/exp(c3rer_pot(+1))*exp(c3rpcpd_pot)/exp(c3rpcpd_pot(+1))*exp(c2rpcpd_pot(+1))/exp(c2rpcpd_pot)*c2beta/c2grmuzss
*exp(c2lambdaq_pot(+1))/exp(c2lambdaq_pot)/(exp(-c3phibparm*c1b_pot(-1)))*exp(c3y_pot(+1))/exp(c3yd_pot)*c3grmuzss*c1b_pot = c3b_pot(-1)+c3tbal_pot;

// producer currency pricing home
exp(c1rpmcpd_pot) = exp(c1rer_pot)*exp(c1rpcpd_pot)/exp(c2rpcpd_pot);

// producer currency pricing JP
 (exp(c3rpmcpd)) = (exp(c3rer))*(exp(c3rpcpd))/(exp(c2rpcpd));

// producer currency pricing forein
exp(c2rpmcpd_pot) = 1/exp(c1rer_pot)*exp(c2rpcpd_pot)/exp(c1rpcpd_pot);

// import prices home 
exp(c1rpmipd_pot) = exp(c1rpmcpd_pot);

// import prices home JP
(exp(c3rpmipd)) = (exp(c3rpmcpd));

// import prices foreign
exp(c2rpmipd_pot) = exp(c2rpmcpd_pot);

// home exports
exp(c1x_pot)  = 1/c1relc2*(exp(c2mc_pot)+exp(c2mi_pot));

// JP exports
(exp(c3x))  = 1/c3relc2*(exp(c2mc)+exp(c2mi));

// foreign exports
exp(c2x_pot)  = c1relc2*(exp(c1mc_pot)+exp(c1mi_pot));



////////////////////////
// nominal rigidities
////////////////////////

//////////////////
// sticky prices
//////////////////

// definition of hp
(exp(c1hp)) = (1+(c1thetap*(exp(c1thetapvar))))/(c1thetap*(exp(c1thetapvar)))*(exp(c1rmcpd))*(exp(c1yd))
+ c1xip*c1beta*(exp(c1lambdaq(+1)))/(exp(c1lambdaq))*((c1pidbar)/(c1pid(+1)))^(-(1
+(c1thetap*(exp(c1thetapvar(+1)))))/(c1thetap*(exp(c1thetapvar(+1)))))*(exp(c1hp(+1)));


 (exp(c3hp)) = (1+(c3thetap*(exp(c3thetapvar))))/(c3thetap*(exp(c3thetapvar)))*(exp(c3rmcpd))*(exp(c3yd))
+ c3xip*c3beta*(exp(c3lambdaq(+1)))/(exp(c3lambdaq))*((c3pidbar)/(c3pid(+1)))^(-(1
+(c3thetap*(exp(c3thetapvar(+1)))))/(c3thetap*(exp(c3thetapvar(+1)))))*(exp(c3hp(+1)));


// definition of gp     
(exp(c1gp)) = (1+c1taup)/(c1thetap*(exp(c1thetapvar)))*(exp(c1yd))+c1xip*c1beta*(exp(c1lambdaq(+1)))/(exp(c1lambdaq))*((c1pidbar)/(c1pid(+1)))^(1
-(1+(c1thetap*(exp(c1thetapvar(+1)))))/(c1thetap*(exp(c1thetapvar(+1)))))*(exp(c1gp(+1)));

(exp(c3gp)) = (1+c3taup)/(c3thetap*(exp(c3thetapvar)))*(exp(c3yd))+c3xip*c3beta*(exp(c3lambdaq(+1)))/(exp(c3lambdaq))*((c3pidbar)/(c3pid(+1)))^(1
-(1+(c3thetap*(exp(c3thetapvar(+1)))))/(c3thetap*(exp(c3thetapvar(+1)))))*(exp(c3gp(+1)));




// definition of pstar
(exp(c1pstar)) = (exp(c1hp))/(exp(c1gp));

(exp(c3pstar)) = (exp(c3hp))/(exp(c3gp));



// price evolution
(1-c1xip)*((exp(c1pstar)))^(-1/(c1thetap*(exp(c1thetapvar))))+c1xip*((c1pidbar(-1))/(c1pid))^(
-1/(c1thetap*(exp(c1thetapvar)))) = 1;

(1-c3xip)*((exp(c3pstar)))^(-1/(c3thetap*(exp(c3thetapvar))))+c3xip*((c3pidbar(-1))/(c3pid))^(
-1/(c3thetap*(exp(c3thetapvar)))) = 1;


// price indexation
(c1pidbar) = ((c1pid))^c1iotap*(c1pistar)^(1-c1iotap);

 (c3pidbar) = ((c3pid))^c3iotap*(c3pistar)^(1-c3iotap);


// price dispersion
(exp(c1y)) = (exp(c1deltad))*(exp(c1yd));

(exp(c3y)) = (exp(c3deltad))*(exp(c3yd));



// evolution of price dispersion
(exp(c1deltad)) = (1-c1xip)*((exp(c1pstar)))^(-(1+(c1thetap*(exp(c1thetapvar))))/(c1thetap*(exp(c1thetapvar))))
+c1xip*((c1pidbar(-1))/(c1pid))^(-(1+(c1thetap*(exp(c1thetapvar))))/(c1thetap*(exp(c1thetapvar))))*(exp(c1deltad(-1)));

 (exp(c3deltad)) = (1-c3xip)*((exp(c3pstar)))^(-(1+(c3thetap*(exp(c3thetapvar))))/(c3thetap*(exp(c3thetapvar))))
+c3xip*((c3pidbar(-1))/(c3pid))^(-(1+(c3thetap*(exp(c3thetapvar))))/(c3thetap*(exp(c3thetapvar))))*(exp(c3deltad(-1)));



// price inflation definition
log((c1pid)) = log(c1pistar) + (c1dpd);

log((c3pid)) = log(c3pistar) + (c3dpd);


// definition of hp
(exp(c2hp)) = (1+(c2thetap*(exp(c2thetapvar))))/(c2thetap*(exp(c2thetapvar)))*(exp(c2rmcpd))*(exp(c2yd))
+ c2xip*c2beta*(exp(c2lambdaq(+1)))/(exp(c2lambdaq))*((c2pidbar)/(c2pid(+1)))^(-(1
+(c2thetap*(exp(c2thetapvar(+1)))))/(c2thetap*(exp(c2thetapvar(+1)))))*(exp(c2hp(+1)));


// definition of gp
(exp(c2gp)) = (1+c2taup)/(c2thetap*(exp(c2thetapvar)))*(exp(c2yd))+c2xip*c2beta*(exp(c2lambdaq(+1)))/(exp(c2lambdaq))*((c2pidbar)/(c2pid(+1)))^(1
-(1+(c2thetap*(exp(c2thetapvar(+1)))))/(c2thetap*(exp(c2thetapvar(+1)))))*(exp(c2gp(+1)));

// definition of pstar
(exp(c2pstar)) = (exp(c2hp))/(exp(c2gp));

// price evolution
(1-c2xip)*((exp(c2pstar)))^(-1/(c2thetap*(exp(c2thetapvar))))+c2xip*((c2pidbar(-1))/(c2pid))^(-1/(c2thetap*(exp(c2thetapvar)))) = 1;

// price indexation
(c2pidbar) = ((c2pid))^c2iotap*(c2pistar)^(1-c2iotap);

// price dispersion
(exp(c2y)) = (exp(c2deltad))*(exp(c2yd));

// evolution of price dispersion
(exp(c2deltad)) = (1-c2xip)*((exp(c2pstar)))^(-(1+(c2thetap*(exp(c2thetapvar))))/(c2thetap*(exp(c2thetapvar))))
+c2xip*((c2pidbar(-1))/(c2pid))^(-(1+(c2thetap*(exp(c2thetapvar))))/(c2thetap*(exp(c2thetapvar))))*(exp(c2deltad(-1)));

// price inflation definition
log((c2pid)) = log(c2pistar) + (c2dpd);




//////////////////
// sticky wages
//////////////////

// definition of hw
(exp(c1hw)) = (1+(c1thetaw*(exp(c1thetawvar))))/(c1thetaw*(exp(c1thetawvar)))*(exp(c1wdes))/(exp(c1w))*(exp(c1l))
+ c1xiw*c1beta/c1grmuzss*(exp(c1lambdaq(+1)))/(exp(c1lambdaq))/(c1pid(+1))*(c1omega(+1))*((c1omegabar)/(c1omega(+1)))^(
-(1+(c1thetaw*(exp(c1thetawvar(+1)))))/(c1thetaw*(exp(c1thetawvar(+1)))))*(exp(c1hw(+1)));


(exp(c3hw)) = (1+(c3thetaw*(exp(c3thetawvar))))/(c3thetaw*(exp(c3thetawvar)))*(exp(c3wdes))/(exp(c3w))*(exp(c3l))
+ c3xiw*c3beta/c3grmuzss*(exp(c3lambdaq(+1)))/(exp(c3lambdaq))/(c3pid(+1))*(c3omega(+1))*((c3omegabar)/(c3omega(+1)))^(
-(1+(c3thetaw*(exp(c3thetawvar(+1)))))/(c3thetaw*(exp(c3thetawvar(+1)))))*(exp(c3hw(+1)));



// definition of gw
(exp(c1gw)) = (1+c1tauw)/(c1thetaw*(exp(c1thetawvar)))*(exp(c1l)) + c1xiw*c1beta/c1grmuzss*(exp(c1lambdaq(+1)))/(exp(c1lambdaq))/(c1pid(+1))*(c1omega(+1))*((c1omegabar)/(c1omega(+1)))^(1
-(1+(c1thetaw*(exp(c1thetawvar(+1)))))/(c1thetaw*(exp(c1thetawvar(+1)))))*(exp(c1gw(+1)));


(exp(c3gw)) = (1+c3tauw)/(c3thetaw*(exp(c3thetawvar)))*(exp(c3l)) + c3xiw*c3beta/c3grmuzss*(exp(c3lambdaq(+1)))/(exp(c3lambdaq))/(c3pid(+1))*(c3omega(+1))*((c3omegabar)/(c3omega(+1)))^(1
-(1+(c3thetaw*(exp(c3thetawvar(+1)))))/(c3thetaw*(exp(c3thetawvar(+1)))))*(exp(c3gw(+1)));


// definition of wstar
(exp(c1wstar))/(exp(c1w)) = (exp(c1hw))/(exp(c1gw));

(exp(c3wstar))/(exp(c3w)) = (exp(c3hw))/(exp(c3gw));


// wage evolution
(1-c1xiw)*((exp(c1wstar))/(exp(c1w)))^(-1/(c1thetaw*(exp(c1thetawvar))))+c1xiw*((c1omegabar(-1))/(c1omega))^(-1/(c1thetaw*(exp(c1thetawvar)))) = 1;
(1-c3xiw)*((exp(c3wstar))/(exp(c3w)))^(-1/(c3thetaw*(exp(c3thetawvar))))+c3xiw*((c3omegabar(-1))/(c3omega))^(-1/(c3thetaw*(exp(c3thetawvar)))) = 1;


// wage indexation
(c1omegabar) = (c1omega)^c1iotaw*(c1pistar*c1grmuzss)^(1-c1iotaw);
(c3omegabar) = (c3omega)^c3iotaw*(c3pistar*c3grmuzss)^(1-c3iotaw);



// wage inflation definition
(c1omega) = (exp(c1w))/(exp(c1w(-1)))*c1grmuzss*(c1pid);
(c3omega) = (exp(c3w))/(exp(c3w(-1)))*c3grmuzss*(c3pid);

// definition of hw
(exp(c2hw)) = (1+(c2thetaw*(exp(c2thetawvar))))/(c2thetaw*(exp(c2thetawvar)))*(exp(c2wdes))/(exp(c2w))*(exp(c2l))
+ c2xiw*c2beta/c2grmuzss*(exp(c2lambdaq(+1)))/(exp(c2lambdaq))/(c2pid(+1))*(c2omega(+1))*((c2omegabar)/(c2omega(+1)))^(
-(1+(c2thetaw*(exp(c2thetawvar(+1)))))/(c2thetaw*(exp(c2thetawvar(+1)))))*(exp(c2hw(+1)));



// definition of gw
(exp(c2gw)) = (1+c2tauw)/(c2thetaw*(exp(c2thetawvar)))*(exp(c2l)) + c2xiw*c2beta/c2grmuzss*(exp(c2lambdaq(+1)))/(exp(c2lambdaq))/(c2pid(+1))*(c2omega(+1))*((c2omegabar)/(c2omega(+1)))^(1
-(1+(c2thetaw*(exp(c2thetawvar(+1)))))/(c2thetaw*(exp(c2thetawvar(+1)))))*(exp(c2gw(+1)));


// definition of wstar
(exp(c2wstar))/(exp(c2w)) = (exp(c2hw))/(exp(c2gw));


// wage evolution
(1-c2xiw)*((exp(c2wstar))/(exp(c2w)))^(-1/(c2thetaw*(exp(c2thetawvar))))+c2xiw*((c2omegabar(-1))/(c2omega))^(
-1/(c2thetaw*(exp(c2thetawvar)))) = 1;


// wage indexation
(c2omegabar) = (c2omega)^c2iotaw*(c2pistar*c2grmuzss)^(1-c2iotaw);

// wage inflation definition
(c2omega) = (exp(c2w))/(exp(c2w(-1)))*c2grmuzss*(c2pid);






////////////////////
// monetary policy US
////////////////////

//(1+(c1rs))/(1+c1rsss) = ((1+(c1rs(-1)))/(1+c1rsss))^c1gamrs*(
//((1+(c1dcore))/(1+log(c1pistar)))*((1+(c1dcore))/(1+log(c1pistar)+(c1pitar)))^c1gamdpc
//*(exp(c1yd)/exp(c1yd_pot))^c1gamgdpgap)^(1-c1gamrs);

//(1+(c1rs))/(1+c1rsss) = ((1+(c1rs(-1)))/(1+c1rsss))^c1gamrs*(
//((1+(c1dcore))/(1+log(c1pistar)))*((1+(c1dcore))/(1+log(c1pistar)+(1+log(c1pistar))*(c1pitar)))^c1gamdpc
//*(exp(c1yd)/exp(c1yd_pot))^c1gamgdpgap
//*((1+c1dpwo)/(1+log(c1pistar)+log(c1grmuzoss)))^c1gamdpwo
//)^(1-c1gamrs);

(1+(c1rs))/(1+c1rsss) = ((1+(c1rs(-1)))/(1+c1rsss))^c1gamrs*(
((1+(c1dcore))/(1+log(c1pistar)))*((1+(c1dcore))/(1+log(c1pistar)))^c1gamdpc
*(exp(c1yd)/exp(c1yd_pot))^c1gamgdpgap
*((1+c1dpwo)/(1+log(c1pistar)+log(c1grmuzoss)))^c1gamdpwo
*((1+log(c1omega))/(1+log(c1pistar)+log(c1grmuzss)))^c1gamomega
)^(1-c1gamrs)*((1/(1+c1pitar))^c1gamdpc2)^(1-c1gamrs2);

c1ygap = exp(c1yd)/exp(c1yd_pot);

//(c1rrs-c1rrsss) = (c1rs-c1rsss)-(c1dpd(+1)-c1dpdss);
1/(1+(c1rs)) = c1beta/c1grmuzss*(exp(c1lambdaq(+1)))/(exp(c1lambdaq))/(1+(c1dpd(+1)));

(exp(c1rpnepd)) = (exp(c1rpcpd))*(c1omegacc*(exp(c1c))/(exp(c1cne)))^(c1rhoo/(1+c1rhoo));

(c1dcore) = log(exp(c1rpnepd)/exp(c1rpnepd(-1))*(c1pid));

(c1dhead) = log(exp(c1rpcpd)/exp(c1rpcpd(-1))*(c1pid));

c1dpwo = log(exp(c1rpwopd)/exp(c1rpwopd(-1))*(c1pid))+log(c1grmuzoss);


(c1pitar) = c1rhopitar * (c1pitar(-1)) + c1scalepitarerr*c1pitarerr;

//(1+(c2rs))/(1+c2rsss) = ((1+(c2rs(-1)))/(1+c2rsss))^c2gamrs*(((1+(c2dcore))/(1
//+log(c2pistar)))*((1+(c2dcore))/(1+log(c2pistar)+(c2pitar)))^c2gamdpc*(exp(c2yd)/exp(c2yd_pot))^c2gamgdpgap)^(1-c2gamrs);
(1+(c2rs))/(1+c2rsss) = ((1+(c2rs(-1)))/(1+c2rsss))^c2gamrs*(((1+(c2dcore))/(1
+log(c2pistar)))*((1+(c2dcore))/(1+log(c2pistar)+(1+log(c2pistar))*(c2pitar)))^c2gamdpc*(exp(c2yd)/exp(c2yd_pot))^c2gamgdpgap)^(1-c2gamrs);

//(c2rrs-c2rrsss) = (c2rs-c2rsss)-(c2dpd(+1)-c2dpdss);
1/(1+(c2rs)) = c2beta/c2grmuzss*(exp(c2lambdaq(+1)))/(exp(c2lambdaq))/(1+(c2dpd(+1)));

(exp(c2rpnepd)) = (exp(c2rpcpd))*(c2omegacc*(exp(c2c))/(exp(c2cne)))^(c2rhoo/(1+c2rhoo));

(c2dcore) = log(exp(c2rpnepd)/exp(c2rpnepd(-1))*(c2pid));

(c2pitar) = c2rhopitar * (c2pitar(-1)) + c2scalepitarerr*c2pitarerr;


////////////////////
// monetary policy JP
////////////////////

//(1+(c3rs))/(1+c3rsss) = ((1+(c3rs(-1)))/(1+c3rsss))^c3gamrs*(
//((1+(c3dcore))/(1+log(c3pistar)))*((1+(c3dcore))/(1+log(c3pistar)+(c3pitar)))^c3gamdpc
//*(exp(c3yd)/exp(c3yd_pot))^c3gamgdpgap)^(1-c3gamrs);

//(1+(c3rs))/(1+c3rsss) = ((1+(c3rs(-1)))/(1+c3rsss))^c3gamrs*(
//((1+(c3dcore))/(1+log(c3pistar)))*((1+(c3dcore))/(1+log(c3pistar)+(1+log(c3pistar))*(c3pitar)))^c3gamdpc
//*(exp(c3yd)/exp(c3yd_pot))^c3gamgdpgap
//*((1+c3dpwo)/(1+log(c3pistar)+log(c3grmuzoss)))^c3gamdpwo
//)^(1-c3gamrs);

(1+(c3rs))/(1+c3rsss) = ((1+(c3rs(-1)))/(1+c3rsss))^c3gamrs*(
((1+(c3dcore))/(1+log(c3pistar)))*((1+(c3dcore))/(1+log(c3pistar)))^c3gamdpc
*(exp(c3yd)/exp(c3yd_pot))^c3gamgdpgap
*((1+c3dpwo)/(1+log(c3pistar)+log(c3grmuzoss)))^c3gamdpwo
*((1+log(c3omega))/(1+log(c3pistar)+log(c3grmuzss)))^c3gamomega
)^(1-c3gamrs)*((1/(1+c3pitar))^c3gamdpc2)^(1-c3gamrs2);

c3ygap = exp(c3yd)/exp(c3yd_pot);

//(c3rrs-c3rrsss) = (c3rs-c3rsss)-(c3dpd(+1)-c3dpdss);
1/(1+(c3rs)) = c3beta/c3grmuzss*(exp(c3lambdaq(+1)))/(exp(c3lambdaq))/(1+(c3dpd(+1)));

(exp(c3rpnepd)) = (exp(c3rpcpd))*(c3omegacc*(exp(c3c))/(exp(c3cne)))^(c3rhoo/(1+c3rhoo));

(c3dcore) = log(exp(c3rpnepd)/exp(c3rpnepd(-1))*(c3pid));

(c3dhead) = log(exp(c3rpcpd)/exp(c3rpcpd(-1))*(c3pid));

c3dpwo = log(exp(c3rpwopd)/exp(c3rpwopd(-1))*(c3pid))+log(c3grmuzoss);

(c3pitar) = c3rhopitar * (c3pitar(-1)) + c3scalepitarerr*c3pitarerr;


////////////////////////
//Important Definitions 
////////////////////////


//steady state ratio between nominal GDP and nominal gross output
//c1rNgdpPdY = 1 - ( c1rpopd * c1oy / c1y) + ( c1rpopd * c1yo / c1y);



// oil price deflated by GNP deflator
//log(c1rpopgdp) - log(c1rpopgdp(-1))= log( c1rpopd / c1rpopd(-1) * c1rNgdpPdY(-1) / c1rNgdpPdY * c1gdp / c1gdp(-1) * c1y(-1) / c1y) ; 


         // log_oil_price - log_oil_price(-1) = log( c1rpopd / c1rpopd(-1) * 
          //  ( 1 - ( c1rpopd(-1) * c1oy(-1) / c1y(-1)) + ( c1rpopd(-1) * c1yo(-1) / c1y(-1)) ) / (1 - ( c1rpopd * c1oy / c1y) + ( c1rpopd * c1yo / c1y)) *
         // (  (c1y - c1rpopd(-1) * c1oy +  c1rpopd(-1) * c1yo) / (c1y(-1) - c1rpopd(-1) * c1oy(-1) +  c1rpopd(-1) * c1yo(-1)) ) / 
         // (   (c1y(-1) - c1rpopd(-2) * c1oy(-1) +  c1rpopd(-2) * c1yo(-1)) / (c1y(-2) - c1rpopd(-2) * c1oy(-2) +  c1rpopd(-2) * c1yo(-2))) 
          // * c1y(-1) / c1y); 



// c1rpopd - c1rpopd(-1) + ( c1grmuzoss * c1mugdpss - c1grmuzss ) / c1grmuzss ; 


           //  log_oil_price - log_oil_price   = log( c1rpopd / c1rpopd(-1)
           //  * (  ( 1 - ( c1rpopd(-1) * c1oy(-1) / c1y(-1)) + ( c1rpopd(-1) * c1yo(-1) / c1y(-1)) ) / (1 - ( c1rpopd * c1oy / c1y) + ( c1rpopd * c1yo / c1y)) ) *  
           // ( (c1y - c1rpopd(-1) * c1oy +  c1rpopd(-1) * c1yo) / (c1y(-1) - c1rpopd(-1) * c1oy(-1) +  c1rpopd(-1) * c1yo(-1)) )   
           // * c1y(-1) / c1y );


//definition of GDP using Laspeyres index

//( 1 - ( c2rpwopdss * cloyss ) / (c1ydss) + ( c2rpwopdss * clyoss )/(c1ydss)  ) ( c1hgdp - c1hgdp(-1) )
  //  - ( c1grmuzss / c1grmugdpss * h     )

//log(c1gdp) - log( c1gdp(-1) ) =   (c1y - c1rpopd(-1) * c1oy +  c1rpopd(-1) * c1yo) / (c1y(-1) - c1rpopd(-1) * c1oy(-1) +  c1rpopd(-1) * c1yo(-1));

          log_gdp_us_obs - log_gdp_us_obs(-1) = log((c1y - c1rpopd(-1) * c1oy +  c1rpopd(-1) * c1yo) / (c1y(-1) - c1rpopd(-1) * c1oy(-1) +  c1rpopd(-1) * c1yo(-1)));

//c2gdp = c2gdp(-1) * (c2y - c2rpwopd(-1) * c2oy +  c2rpwopd(-1) * c2yo) / (c2y(-1) - c2rpwopd(-1) * c2oy(-1) +  c2rpwopd(-1) * c2yo(-1));


///////////////////////////////////////////////////////////
// Relationships between Model variables and observed data
///////////////////////////////////////////////////////////


//observation equation for GDP

//log_gdp_us_obs -  log_gdp_us_obs(-1) = (c1gdp ) -  ( c1gdp(-1))   + ( c1grmuzss - 1 );

// log_gdp_for - log_gdp_for(-1) = c2hgdp - c2hgdp(-1) + ( c2grmuzss - 1 ); 

 
dpcexfe_obs = c1dcore + ( c1pstar  - 1); 
dcomp_obs = c1wdes; 
fedfunds_obs = c1rrs;
rer_log_obs = c1rer ; 

fixi_share_us_obs = (1 / ( 1 - c1rpopd * c1oy / c1y + c1rpopd * c1yo/c1y) ) * c1rpopd  * (  c1o / c1y - c1yo / c1y  ) ;

pce_share_us_obs = c1rpcpd * c1c / c1y  * (1 / ( 1 - ( c1rpopd * c1oy / c1y ) + ( c1rpopd   * c1yo / c1y )) ) ;

exp_share_us_obs = c1x / c1y  * (1 / ( 1 - ( c1rpopd * c1oy / c1y ) + ( c1rpopd   * c1yo / c1y )) ) ;
imp_share_us_obs = c1m / c1y  * (1 / ( 1 - ( c1rpopd * c1oy / c1y ) + ( c1rpopd   * c1yo / c1y )) ) ;

oilimp_share_us_obs  = (1 / ( 1 - c1rpopd * c1oy / c1y + c1rpopd * c1yo/c1y) ) * c1rpopd  * (  c1o / c1y - c1yo / c1y  ) ;

oilprod_us_deltalog_obs = c1oy - c1oy(-1) + ( c1grmuoss  - 1 );

oilprod_for_deltalog_obs = c2oy - c2oy(-1) + ( c2grmuoss  - 1 );

delta_logoilprice_obs = c1rpopd -  c1rpopd(-1)  +  ( c1grmuzoss * c1mugdpss  -  c1grmuzss ) / c1grmuzss; 

end;



steady;

shocks;
var c1shockgyerr = 0.001;
var c1zcerr = 0.001;
var c1zierr = 0.001;
var c1yoerr = 0.001;
var c1muocerr = 0.001;
var c1mucerr = 0.001;
var c1omegacmerr = 0.001;
var c2shockgyerr = 0;
var c2zcerr = 0.001;
var c2zierr = 0;
var c2yoerr = 0.001;
var c2muocerr = 0.001;
var c2mucerr = 0.001;
var c2omegacmerr = 0.001;
var c1zwerr = 0;
var c1muowerr = 0;
var c2thetapvarerr = 0;
var c1thetapvarerr = 0.001;
var c2thetawvarerr = 0;
var c1thetawvarerr = 0.001;
var c1pitarerr = 0.001;
var c2pitarerr = 0.001;
var c3shockgyerr = 0.001;
var c3zcerr = 0.001;
var c3zierr = 0.001;
var c3yoerr = 0.001;
var c3muocerr = 0.001;
var c3mucerr = 0.001;
var c3omegacmerr = 0.001;
var c3zwerr = 0.001;
var c3muowerr = 0.001;
var c3thetapvarerr = 0.001;
var c3thetawvarerr = 0.001;
var c3pitarerr = 0.001;
end;


varobs
//log_oil_price;
//delta_logoilprice;
dpcexfe_obs dcomp_obs fedfunds_obs rer_log_obs log_gdp_us_obs imp_share_us_obs exp_share_us_obs pce_share_us_obs oilimp_share_us_obs 
fixi_share_us_obs oilprod_us_deltalog_obs oilprod_for_deltalog_obs  delta_logoilprice_obs;

 
estimated_params;
c1sigma, 1, , ,normal_pdf, 2.0, 0.5; 
c1vkappa, 1, , ,normal_pdf, 0, 1;//'c1vkappa', 0.0, 0.98,'Habits in Consumption';... 
c1beta, 1, , ,normal_pdf, 0, 2; //'c1beta',0.95,1.01,'Discount Factor';...
c1grmuzss, 1, , ,normal_pdf, 0, 2;//'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...
c1psii, 1, , ,normal_pdf, 0, 1;// 'c1psii',0,50,'Investment Adjustment Cost';... 
c1delta, 1, , ,normal_pdf, 0, 1;           
c1rhoc, 1, , ,normal_pdf, 0, 1;             
c1rhoo, 1, , ,normal_pdf, 0, 1;        
c1phimc, 1, , ,normal_pdf, 0, 2;//'c1phimc', 0,100, 'Nonoil Trade Adjustment Costs';... 
c1phioc, 1, , ,normal_pdf, 0, 2;//'c1phioc', 0, 100, 'Adjustment Costs For Oil Demand';...    
c1grmuoss, 1, , ,normal_pdf, 0, 2;//'c1muoss',1,1.1,'Growth Rate of Oil Supply';...
c1omegak, 1, , ,normal_pdf, 0, 1;          
c1rhov, 1, , ,normal_pdf, 0, 1;            
c1omegal, 1, , ,normal_pdf, 0, 1;        
c1ratiomimc, 1, , ,normal_pdf, 0, 1;       
c1pwoss, 1, , ,normal_pdf, 0, 1;          
c1rhogy, 1, , ,normal_pdf, 0, 2;//'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.';...
c1scaleshockgyerr, 1, , ,normal_pdf, 0, 2;//'c1scaleshockgyerr',stdlowerbound,stdupperbound, 'U.S. Gov. Exp. st. dev. of innovation';... 
c1mugdpss, 1, , ,normal_pdf, 0, 1;         
c1alphaop, 1, , ,normal_pdf, 0, 1;          
c1deltao, 1, , ,normal_pdf, 0, 1;           
c1grmuzoss, 1, , ,normal_pdf, 0, 1;        
c1rhozc1, 1, , ,normal_pdf, 0, 2;//'c1rhozc1', arlowerbound,arupperbound, 'Technology, growth AR(1) coef.';...         
c1rhozc2, 1, , ,normal_pdf, 0, 2;//'c1rhozc2', arlowerbound,arupperbound, 'Technology, level error corr. coef.';...  
c1scalezcerr, 1, , ,normal_pdf, 0, 2;//'c1scalezcerr', stdlowerbound,stdupperbound, 'U.S. Technology, st. dev. of innovation';...    
c1rhozi, 1, , ,normal_pdf, 0, 2;//'c1rhozi', arlowerbound, arupperbound, 'U.S. Investment Technology Shock AR(1) coef.';...
c1scalezierr, 1, , ,normal_pdf, 0, 2;//'c1scalezierr',stdlowerbound,stdupperbound, 'U.S. Inv. Tech. st. dev. of innovation';...     
c1rhoyo1, 1, , ,normal_pdf, 0, 2;//'c1rhoyo1', arlowerbound,arupperbound, 'U.S. Oil Supply, growth AR(1) coef.';...         
c1rhoyo2, 1, , ,normal_pdf, 0, 2;//'c1rhoyo2', arlowerbound,arupperbound, 'U.S. Oil Supply, level error corr. coef.';...   
c1scaleyoerr, 1, , ,normal_pdf, 0, 2;//'c1scaleyoerr', stdlowerbound,stdupperbound, 'U.S. Oil Supply, st. dev. of innovation';... 
c1rhomuoc1, 1, , ,normal_pdf, 0, 2;//'c1rhomuoc1', arlowerbound,arupperbound, 'Oil Demand, growth AR(1) coef.';...      
c1rhomuoc2, 1, , ,normal_pdf, 0, 2;//'c1rhomuoc2', arlowerbound,arupperbound, 'Oil Demand, level error corr. coef.';...    
c1scalemuocerr, 1, , ,normal_pdf, 0, 2;//'c1scalemuocerr', stdlowerbound,stdupperbound, 'U.S. Oil Demand, st. dev. of innovation';...   
c1rhomuc, 1, , ,normal_pdf, 0, 2;//'c1rhomuc', arlowerbound,arupperbound, 'Preference Shock, AR(1) coef.';...       
c1scalemucerr, 1, , ,normal_pdf, 0, 2;//'c1scalemucerr', stdlowerbound,stdupperbound, 'Preference Shock, st. dev. of innovation';...  
c1rhoomegacm1, 1, , ,normal_pdf, 0, 2;//'c1rhoomegacm1', arlowerbound,arupperbound, 'Import Preference, AR(1) coef.';...
c1rhoomegacm2, 1, , ,normal_pdf, 0, 2;//'c1rhoomegacm2', arlowerbound,arupperbound, 'Import Preference, level error corr. coef.';...
c1scaleomegacmerr, 1, , ,normal_pdf, 0, 2;//'c1scaleomegacmerr', stdlowerbound,stdupperbound, 'U.S. Import Preference, st. dev. of innovation';...
c2sigma, 1, , ,normal_pdf, 0, 2;            
c2vkappa, 1, , ,normal_pdf, 0, 2;           
c2grmuzss, 1, , ,normal_pdf, 0, 2;         
c2psii, 1, , ,normal_pdf, 0, 2;            
c2beta, 1, , ,normal_pdf, 0, 2;            
c2delta, 1, , ,normal_pdf, 0, 2;          
c2rhoc, 1, , ,normal_pdf, 0, 2;            
c2rhoo, 1, , ,normal_pdf, 0, 2;            
c2phimc, 1, , ,normal_pdf, 0, 2;           
c2phioc, 1, , ,normal_pdf, 0, 2;           
c2grmuoss, 1, , ,normal_pdf, 0, 2;         
c2omegak, 1, , ,normal_pdf, 0, 2;          
c2rhov, 1, , ,normal_pdf, 0, 2;           
c2omegal, 1, , ,normal_pdf, 0, 2;          
c2ratiomimc, 1, , ,normal_pdf, 0, 2;       
c2pwoss, 1, , ,normal_pdf, 0, 2;           
c2rhogy, 1, , ,normal_pdf, 0, 2;           
c2scaleshockgyerr, 1, , ,normal_pdf, 0, 2; 
c2mugdpss, 1, , ,normal_pdf, 0, 2;        
c2alphaop, 1, , ,normal_pdf, 0, 2;         
c2deltao, 1, , ,normal_pdf, 0, 2;          
c2grmuzoss, 1, , ,normal_pdf, 0, 2;         
c2rhozc1, 1, , ,normal_pdf, 0, 2;          
c2rhozc2, 1, , ,normal_pdf, 0, 2;          
c2scalezcerr, 1, , ,normal_pdf, 0, 2; //'c2scalezcerr', stdlowerbound,stdupperbound, 'Foreign Technology, st. dev. of innovation';...
c2rhozi, 1, , ,normal_pdf, 0, 2;          
c2scalezierr, 1, , ,normal_pdf, 0, 2;      
c2rhoyo1, 1, , ,normal_pdf, 0, 2;//'c2rhoyo1', arlowerbound,arupperbound, 'Foreign Oil Supply, growth AR(1) coef.';...  
c2rhoyo2, 1, , ,normal_pdf, 0, 2;//'c2rhoyo2', arlowerbound,arupperbound, 'Foreign Oil Supply, level error corr. coef.';...   
c2scaleyoerr, 1, , ,normal_pdf, 0, 2;//'c2scaleyoerr', stdlowerbound,stdupperbound, 'Foreign Oil Supply, st. dev. of innovation';...     
c2rhomuoc1, 1, , ,normal_pdf, 0, 2;
c2rhomuoc2, 1, , ,normal_pdf, 0, 2;      
c2scalemuocerr, 1, , ,normal_pdf, 0, 2;//'c2scalemuocerr', stdlowerbound,stdupperbound, 'Foreign Oil Demand, st. dev. of innovation';...
c2rhomuc, 1, , ,normal_pdf, 0, 2;      
c2scalemucerr, 1, , ,normal_pdf, 0, 2;//'c2scalemucerr', stdlowerbound,stdupperbound, 'Preference Shock, st. dev. of innovation';...    
c2rhoomegacm1, 1, , ,normal_pdf, 0, 2;     
c2rhoomegacm2, 1, , ,normal_pdf, 0, 2;     
c2scaleomegacmerr, 1, , ,normal_pdf, 0, 2;//'c2scaleomegacmerr', stdlowerbound,stdupperbound, 'Foreign Import Preference, st. dev. of innovation';...
c1phibparm, 1, , ,normal_pdf, 0, 2;     
c1rhozw1, 1, , ,normal_pdf, 0, 2;//'c1rhozw1', arlowerbound,arupperbound, 'World Technology, growth AR(1) coef.';...   
c1rhozw2, 1, , ,normal_pdf, 0, 2;//'c1rhozw2', arlowerbound,arupperbound, 'World Technology, level error corr. coef.';...     
c1scalezwerr, 1, , ,normal_pdf, 0, 2;//'c1scalezwerr', stdlowerbound,stdupperbound, 'World Technology, st. dev. of innovation';...
c1rhomuow1, 1, , ,normal_pdf, 0, 2;//'c1rhomuow1',arlowerbound,arupperbound, 'World Oil Demand, growth AR(1) coef.' ;...      
c1rhomuow2, 1, , ,normal_pdf, 0, 2;//'c1rhomuow2', arlowerbound,arupperbound, 'World Oil Demand, level error corr. coef.' ;...    
c1scalemuowerr, 1, , ,normal_pdf, 0, 2;//'c1scalemuowerr', stdlowerbound,stdupperbound, 'World Oil Demand, st. dev. of innovation';...  
c2phioy, 1, , ,normal_pdf, 0, 2;           
c1phioy, 1, , ,normal_pdf, 0, 2;           
c2rhothetapvar, 1, , ,normal_pdf, 0, 2;   
c2scalethetapvarerr, 1, , ,normal_pdf, 0, 2;
c1rhothetapvar, 1, , ,normal_pdf, 0, 2;//'c1rhothetapvar',arlowerbound,arupperbound, 'U.S. Price Markup, AR(1) coef.';... 
c1scalethetapvarerr, 1, , ,normal_pdf, 0, 2;//'c1scalethetapvarerr',stdlowerbound,stdupperbound,'U.S. Price Markup, st. dev. of innovation';...
c2labshare, 1, , ,normal_pdf, 0, 2;      
c2chi, 1, , ,normal_pdf, 0, 2;           
c1labshare, 1, , ,normal_pdf, 0, 2;        
c1chi, 1, , ,normal_pdf, 0, 2; //'c1chi',0.001,1000,'Determines Lab. Supply El. (1/param/2)'};
c2rhothetawvar, 1, , ,normal_pdf, 0, 2; 
c2scalethetawvarerr, 1, , ,normal_pdf, 0, 2;
c1rhothetawvar, 1, , ,normal_pdf, 0, 2;//'c1rhothetawvar',arlowerbound,arupperbound, 'U.S. Wage Markup, AR(1) coef.';... 
c1scalethetawvarerr, 1, , ,normal_pdf, 0, 2;//'c1scalethetawvarerr',stdlowerbound,stdupperbound,'U.S. Wage Markup, st. dev. of innovation';...
c2thetap, 1, , ,normal_pdf, 0, 2;       
c1thetap, 1, , ,normal_pdf, 0, 2;       
c2thetaw, 1, , ,normal_pdf, 0, 2;          
c1thetaw, 1, , ,normal_pdf, 0, 2;          
c2iotap, 1, , ,normal_pdf, 0, 2;          
c2xip, 1, , ,normal_pdf, 0, 2;            
c1iotap, 1, , ,normal_pdf, 0, 2;//'c1iotap',0,1,'Lagged Price Indexation';...
c1xip, 1, , ,normal_pdf, 0, 2;            


end;

estimated_params_init(use_calibration);
end;

check;

estimation( optim=('MaxIter',200), datafile=observationdat,  xls_sheet=Sheet1, xls_range=A2:T162, mode_compute=4, prefilter=0,mh_replic=200,mh_nblocks=2,mh_jscale=0.20)c1k, c1c, c1cne, c1cd, c1mc, c1oc, c1id, c1rpipd, c1mi, c1v, c1y, c1rk; 
//stoch_simul(periods=200,order=2,nocorr,noprint,irf=200) c1k, c1c, c1cne, c1cd, c1mc, c1oc, c1id, c1rpipd, c1mi, c1v, c1y, c1rk;





//estimated_params;
//c1sigma, 1, , ,normal_pdf, 2.0, 0.5; 
//c1vkappa, 1, , ,normal_pdf, 0, 1;//'c1vkappa', 0.0, 0.98,'Habits in Consumption';... 
//c1beta, 1, , ,normal_pdf, 0, 2; //'c1beta',0.95,1.01,'Discount Factor';...
//c1grmuzss, 1, , ,normal_pdf, 0, 2;//'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...
//c1psii, 1, , ,normal_pdf, 0, 1;// 'c1psii',0,50,'Investment Adjustment Cost';... 
//c1delta, 1, , ,normal_pdf, 0, 1;           
//c1rhoc, 1, , ,normal_pdf, 0, 1;             
//c1rhoo, 1, , ,normal_pdf, 0, 1;        
//c1phimc, 1, , ,normal_pdf, 0, 2;//'c1phimc', 0,100, 'Nonoil Trade Adjustment Costs';... 
//c1phioc, 1, , ,normal_pdf, 0, 2;//'c1phioc', 0, 100, 'Adjustment Costs For Oil Demand';...    
//c1grmuoss, 1, , ,normal_pdf, 0, 2;//'c1muoss',1,1.1,'Growth Rate of Oil Supply';...
//c1omegak, 1, , ,normal_pdf, 0, 1;          
//c1rhov, 1, , ,normal_pdf, 0, 1;            
//c1omegal, 1, , ,normal_pdf, 0, 1;        
//c1ratiomimc, 1, , ,normal_pdf, 0, 1; OK

      
//c1pwoss, 1, , ,normal_pdf, 0, 1;          
//c1rhogy, 1, , ,normal_pdf, 0, 2;//'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.';...
//c1scaleshockgyerr, 1, , ,normal_pdf, 0, 2;//'c1scaleshockgyerr',stdlowerbound,stdupperbound, 'U.S. Gov. Exp. st. dev. of innovation';... 
//c1mugdpss, 1, , ,normal_pdf, 0, 1;         
//c1alphaop, 1, , ,normal_pdf, 0, 1;          
//c1deltao, 1, , ,normal_pdf, 0, 1;           
//c1grmuzoss, 1, , ,normal_pdf, 0, 1;        
//c1rhozc1, 1, , ,normal_pdf, 0, 2;//'c1rhozc1', arlowerbound,arupperbound, 'Technology, growth AR(1) coef.';...         
//c1rhozc2, 1, , ,normal_pdf, 0, 2;//'c1rhozc2', arlowerbound,arupperbound, 'Technology, level error corr. coef.';...  
//c1scalezcerr, 1, , ,normal_pdf, 0, 2;//'c1scalezcerr', stdlowerbound,stdupperbound, 'U.S. Technology, st. dev. of innovation';...    



//c1rhozi, 1, , ,normal_pdf, 0, 2;//'c1rhozi', arlowerbound, arupperbound, 'U.S. Investment Technology Shock AR(1) coef.';...
//c1scalezierr, 1, , ,normal_pdf, 0, 2;//'c1scalezierr',stdlowerbound,stdupperbound, 'U.S. Inv. Tech. st. dev. of innovation';...     
//c1rhoyo1, 1, , ,normal_pdf, 0, 2;//'c1rhoyo1', arlowerbound,arupperbound, 'U.S. Oil Supply, growth AR(1) coef.';...         
//c1rhoyo2, 1, , ,normal_pdf, 0, 2;//'c1rhoyo2', arlowerbound,arupperbound, 'U.S. Oil Supply, level error corr. coef.';...   
//c1scaleyoerr, 1, , ,normal_pdf, 0, 2;//'c1scaleyoerr', stdlowerbound,stdupperbound, 'U.S. Oil Supply, st. dev. of innovation';... 
//c1rhomuoc1, 1, , ,normal_pdf, 0, 2;//'c1rhomuoc1', arlowerbound,arupperbound, 'Oil Demand, growth AR(1) coef.';...      
//c1rhomuoc2, 1, , ,normal_pdf, 0, 2;//'c1rhomuoc2', arlowerbound,arupperbound, 'Oil Demand, level error corr. coef.';...    
//c1scalemuocerr, 1, , ,normal_pdf, 0, 2;//'c1scalemuocerr', stdlowerbound,stdupperbound, 'U.S. Oil Demand, st. dev. of innovation';...   
//c1rhomuc, 1, , ,normal_pdf, 0, 2;//'c1rhomuc', arlowerbound,arupperbound, 'Preference Shock, AR(1) coef.';...       
//c1scalemucerr, 1, , ,normal_pdf, 0, 2;//'c1scalemucerr', stdlowerbound,stdupperbound, 'Preference Shock, st. dev. of innovation';...  
//c1rhoomegacm1, 1, , ,normal_pdf, 0, 2;//'c1rhoomegacm1', arlowerbound,arupperbound, 'Import Preference, AR(1) coef.';...
//c1rhoomegacm2, 1, , ,normal_pdf, 0, 2;//'c1rhoomegacm2', arlowerbound,arupperbound, 'Import Preference, level error corr. coef.';...
//c1scaleomegacmerr, 1, , ,normal_pdf, 0, 2;//'c1scaleomegacmerr', stdlowerbound,stdupperbound, 'U.S. Import Preference, st. dev. of innovation';...



//c2sigma, 1, , ,normal_pdf, 0, 2;            
//c2vkappa, 1, , ,normal_pdf, 0, 2;           
//c2grmuzss, 1, , ,normal_pdf, 0, 2;         
//c2psii, 1, , ,normal_pdf, 0, 2;            
//c2beta, 1, , ,normal_pdf, 0, 2;            
//c2delta, 1, , ,normal_pdf, 0, 2;          
//c2rhoc, 1, , ,normal_pdf, 0, 2;            
//c2rhoo, 1, , ,normal_pdf, 0, 2;            
//c2phimc, 1, , ,normal_pdf, 0, 2;           
//c2phioc, 1, , ,normal_pdf, 0, 2;           
//c2grmuoss, 1, , ,normal_pdf, 0, 2;         
//c2omegak, 1, , ,normal_pdf, 0, 2;          
//c2rhov, 1, , ,normal_pdf, 0, 2;           
//c2omegal, 1, , ,normal_pdf, 0, 2;          
//c2ratiomimc, 1, , ,normal_pdf, 0, 2;       
//c2pwoss, 1, , ,normal_pdf, 0, 2;           
//c2rhogy, 1, , ,normal_pdf, 0, 2;      
     
//c2scaleshockgyerr, 1, , ,normal_pdf, 0, 2; 
//c2mugdpss, 1, , ,normal_pdf, 0, 2;        
//c2alphaop, 1, , ,normal_pdf, 0, 2;         
//c2deltao, 1, , ,normal_pdf, 0, 2;          
//c2grmuzoss, 1, , ,normal_pdf, 0, 2;         
//c2rhozc1, 1, , ,normal_pdf, 0, 2;          
//c2rhozc2, 1, , ,normal_pdf, 0, 2; 
         
//c2scalezcerr, 1, , ,normal_pdf, 0, 2; //'c2scalezcerr', stdlowerbound,stdupperbound, 'Foreign Technology, st. dev. of innovation';...
//c2rhozi, 1, , ,normal_pdf, 0, 2;          
//c2scalezierr, 1, , ,normal_pdf, 0, 2;      
//c2rhoyo1, 1, , ,normal_pdf, 0, 2;//'c2rhoyo1', arlowerbound,arupperbound, 'Foreign Oil Supply, growth AR(1) coef.';...  
//c2rhoyo2, 1, , ,normal_pdf, 0, 2;//'c2rhoyo2', arlowerbound,arupperbound, 'Foreign Oil Supply, level error corr. coef.';...   
//c2scaleyoerr, 1, , ,normal_pdf, 0, 2;//'c2scaleyoerr', stdlowerbound,stdupperbound, 'Foreign Oil Supply, st. dev. of innovation';...     
//c2rhomuoc1, 1, , ,normal_pdf, 0, 2;
//c2rhomuoc2, 1, , ,normal_pdf, 0, 2;      
//c2scalemuocerr, 1, , ,normal_pdf, 0, 2;//'c2scalemuocerr', stdlowerbound,stdupperbound, 'Foreign Oil Demand, st. dev. of innovation';...
//c2rhomuc, 1, , ,normal_pdf, 0, 2;      
//c2scalemucerr, 1, , ,normal_pdf, 0, 2;//'c2scalemucerr', stdlowerbound,stdupperbound, 'Preference Shock, st. dev. of innovation';...    
//c2rhoomegacm1, 1, , ,normal_pdf, 0, 2;     
//c2rhoomegacm2, 1, , ,normal_pdf, 0, 2;     
//c2scaleomegacmerr, 1, , ,normal_pdf, 0, 2;//'c2scaleomegacmerr', stdlowerbound,stdupperbound, 'Foreign Import Preference, st. dev. of innovation';...
//c1phibparm, 1, , ,normal_pdf, 0, 2;     
//c1rhozw1, 1, , ,normal_pdf, 0, 2;//'c1rhozw1', arlowerbound,arupperbound, 'World Technology, growth AR(1) coef.';...   
//c1rhozw2, 1, , ,normal_pdf, 0, 2;//'c1rhozw2', arlowerbound,arupperbound, 'World Technology, level error corr. coef.';...     
//c1scalezwerr, 1, , ,normal_pdf, 0, 2;//'c1scalezwerr', stdlowerbound,stdupperbound, 'World Technology, st. dev. of innovation';...
//c1rhomuow1, 1, , ,normal_pdf, 0, 2;//'c1rhomuow1',arlowerbound,arupperbound, 'World Oil Demand, growth AR(1) coef.' ;...      
//c1rhomuow2, 1, , ,normal_pdf, 0, 2;//'c1rhomuow2', arlowerbound,arupperbound, 'World Oil Demand, level error corr. coef.' ;...    
//c1scalemuowerr, 1, , ,normal_pdf, 0, 2;//'c1scalemuowerr', stdlowerbound,stdupperbound, 'World Oil Demand, st. dev. of innovation';...  
//c2phioy, 1, , ,normal_pdf, 0, 2;           
//c1phioy, 1, , ,normal_pdf, 0, 2;           
//c2rhothetapvar, 1, , ,normal_pdf, 0, 2;   
//c2scalethetapvarerr, 1, , ,normal_pdf, 0, 2;
//c1rhothetapvar, 1, , ,normal_pdf, 0, 2;//'c1rhothetapvar',arlowerbound,arupperbound, 'U.S. Price Markup, AR(1) coef.';... 
//c1scalethetapvarerr, 1, , ,normal_pdf, 0, 2;//'c1scalethetapvarerr',stdlowerbound,stdupperbound,'U.S. Price Markup, st. dev. of innovation';...
//c2labshare, 1, , ,normal_pdf, 0, 2;      
//c2chi, 1, , ,normal_pdf, 0, 2;           
//c1labshare, 1, , ,normal_pdf, 0, 2;        
//c1chi, 1, , ,normal_pdf, 0, 2; //'c1chi',0.001,1000,'Determines Lab. Supply El. (1/param/2)'};
//c2rhothetawvar, 1, , ,normal_pdf, 0, 2; 
//c2scalethetawvarerr, 1, , ,normal_pdf, 0, 2;
//c1rhothetawvar, 1, , ,normal_pdf, 0, 2;//'c1rhothetawvar',arlowerbound,arupperbound, 'U.S. Wage Markup, AR(1) coef.';... 
//c1scalethetawvarerr, 1, , ,normal_pdf, 0, 2;//'c1scalethetawvarerr',stdlowerbound,stdupperbound,'U.S. Wage Markup, st. dev. of innovation';...
//c2thetap, 1, , ,normal_pdf, 0, 2;       
//c1thetap, 1, , ,normal_pdf, 0, 2;       
//c2thetaw, 1, , ,normal_pdf, 0, 2;          
//c1thetaw, 1, , ,normal_pdf, 0, 2;          
//c2iotap, 1, , ,normal_pdf, 0, 2;          
//c2xip, 1, , ,normal_pdf, 0, 2;            
//c1iotap, 1, , ,normal_pdf, 0, 2;//'c1iotap',0,1,'Lagged Price Indexation';...
//c1xip, 1, , ,normal_pdf, 0, 2;            
