var c1rngdpy,
c1logdeltagdp,
c2logdeltagdp,
c1welf,
c2welf,
c1ygap,
c1lambdaq,
c1q,
c1i,
c1k,
c1c,
c1cne,
c1cd,
c1mc,
c1oc,
c1id,
c1rpipd,
c1mi,
c1v,
c1y,
c1rk,
c1l,
c1o,
c1rrs,
c1m,
c1tbal,
c1gtbal,
c1g,
c1shockgy,
c1op,
c1os,
c1ow,
c1rpopd,
c1oi,
c1zc,
c1zclag,
c1zi,
c1yo,
c1lagyo,
c1muoc,
c1lagmuoc,
c1muc,
c1omegacm,
c1lagomegacm,
c1omegaim,
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,
c1rer,
c2rpwopd,
c1rpwopd,
c1b,
c1rpmcpd,
c2rpmcpd,
c1z,
c2z,
c1zw,
c1zwlag,
c1muo,
c2muo,
c1muow,
c1muowlag,
c1rpmipd,
c1x,
c2rpmipd,
c2x,
c2w,
c1w,
c2oy,
c1oy,
c2thetapvar,
c1thetapvar,
c2wdes,
c1wdes,
c2thetawvar,
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,
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,
c1rer_pot,
c2rpwopd_pot,
c1rpwopd_pot,
c1b_pot,
c1rpmcpd_pot,
c2rpmcpd_pot,
c1rpmipd_pot,
c1x_pot,
c2rpmipd_pot,
c2x_pot,
c2w_pot,
c1w_pot,
c2oy_pot,
c1oy_pot,
c2rmcpd_pot,
c1rmcpd_pot,
c2wdes_pot,
c1wdes_pot,
c2rpcpd_pot,
c1rpcpd_pot,
c2rmcpd,
c1rmcpd,
c2rpcpd,
c1rpcpd,
c2dpd,
c1dpd,
c2dcore,
c1dcore,
c1dhead,
c1dpwo,
c2rpnepd,
c1rpnepd,
c1rs,
c2rs,
c1pitar,
c2pitar,
c1hw,
c1gw,
c1wstar,
c1omegabar,
c1omega,
c2hw,
c2gw,
c2wstar,
c2omegabar,
c2omega,
c1hp,
c1gp,
c1pstar,
c1pidbar,
c1pid,
c1deltad,
c2hp,
c2gp,
c2pstar,
c2pidbar,
c2pid,
c2deltad,
c1yd,
c2yd,
c1yd_pot,
c2yd_pot,

c1logdeltagdp, 
c2logdeltagdp,
c1rngdpy,
c2rngdpy, 
deltalog_gdp_jp_obs,
deltalog_gdp_for_obs,
dpcexfe_log_jp_obs,
rer_log_jp_obs,
dcomp_log_jp_obs,
fedfunds_jp_obs,
fixi_share_jp_obs,
pce_share_jp_obs,
exp_share_jp_obs,
imp_share_jp_obs,
oilimp_share_jp_obs,
oilprod_jp_deltalog_obs,
oilprod_for_deltalog_obs,
delta_logoilprice_jp_obs,
oilprod_jp_deltalog_obs_annual,
fixi_share_for_obs,    	
imp_share_for_obs, 	
pce_share_for_obs,	
gov_share_for_obs, 	
exp_share_for_obs, 	
gov_share_us_obs, 	
hours_log_us_obs;



parameters  
c1sigma            ,//intemporal consumption elaticity
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            ,//'depreciation rate of capital' 
c1shareocc         ,
c1sharemccn        ,
c1rhoc             ,// elasticity of substitution between domestic goods and imports
c1rhoo             ,// elasticity of substitution between domestic oil and imports
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';...
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';...
c1phibparm         ,
c2shareoprod       ,
c2shareocon        ,
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';...  
c2phioy            ,
c1phioy            ,
c2rhothetapvar     ,
c2scalethetapvarerr,
c1rhothetapvar     ,//'c1rhothetapvar',arlowerbound,arupperbound, 'U.S. Price Markup, AR(1) coef.';... 
c1scalethetapvarerr,//'c1scalethetapvarerr',stdlowerbound,stdupperbound,'U.S. Price Markup, st. dev. of innovation';...
c2labshare         ,
c2chi              ,
c1labshare         ,
c1chi              ,//'c1chi',0.001,1000,'Determines Lab. Supply El. (1/param/2)'};
c2rhothetawvar     ,
c2scalethetawvarerr,
c1rhothetawvar     ,//'c1rhothetawvar',arlowerbound,arupperbound, 'U.S. Wage Markup, AR(1) coef.';... 
c1scalethetawvarerr,//'c1scalethetawvarerr',stdlowerbound,stdupperbound,'U.S. Wage Markup, st. dev. of innovation';...
c2thetap           ,
c1thetap           ,
c2thetaw           ,
c1thetaw           ,
c2iotap            ,
c2xip              ,
c1iotap            ,//'c1iotap',0,1,'Lagged Price Indexation';...
c1xip              ,//'c1xip',0.05,.95,'Calvo Price Parameter';...
c2iotaw            ,
c2xiw              ,
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          ,
c2gamrs            ,
c2gamdpc           ,
c2gamrer           ,//'c2gamrer',0,5,'Weight on Exchange Rate in Foreign Rule';...
c2gamgdpgap        ,
c1rhopitar         ,//'c1rhopitar',arlowerbound,arupperbound, 'U.S. Monetary Policy, AR(1) coef.';...   
c1scalepitarerr    ,//'c1scalepitarerr',stdlowerbound,stdupperbound,'U.S. Monetary Policy, st. dev. of innovation';...
c2rhopitar         ,
c2scalepitarerr    ,
c1chi0,
c1omegaoc,
c1omegacc
c1omegac,
c1omegamc,
c1omegai,
c1omegami,
c1rhoi,
c1omegavy,
c1omegaoy,
c1relc2,
c1pistar,// 'c1pistar',0,2,'Steady State Inflation';...
c1tauw,
c1taup,
c2chi0,
c2omegaoc,
c2omegacc
c2omegac,
c2omegamc,
c2omegai,
c2omegami,
c2rhoi,
c2omegavy,
c2omegaoy,
c2pistar,
c2tauw,
c2taup,
c1yss,
c2yss,
c1rsss,
c2rsss, 
c1sharengdpny,
c1telast,
c1kelast,
c1less,
c1oelast;

c1chi = 59.54;//'c1chi',0.001,1000,'Determines Lab. Supply El. (1/param/2)'};//determines labor supply elasticity 
c1sigma  = 1;//intemporal consumption elaticity
c1vkappa = 0.8;//'c1vkappa', 0.0, 0.98,'Habits in Consumption';...
c1grmuoss  = 1.003771117;// growth of oil supply steady state calibrated parameter...steady state calibrated parameter
c1grmuzoss = 1.009843865;// price of oil growth...steady state calibrated parameter 
c1grmuzss = c1grmuzoss * c1grmuoss;//'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...steady state calibrated parameter dundo 
c1muoss = 1.003771117;// mean of oil growth demand in JP see Oil Imports Japan % GDP.xlsx
c1muzoss = 1.009843865; // mean of price oil growth in JP see Oil Imports Japan % GDP.xlsx
c1muzss = c1muzoss * c1muoss;//Growth Rate of Technology (gross)';...
c1psii = 3.51;//'c1psii',0,50,'Investment Adjustment Cost';...
c1beta = 1.05;//0.99;//'c1beta',0.95,1.01,'Discount Factor';...
c1delta = 0.025;//'depreciation rate of capital' Bodenstein (2012) 
c1telast = 0.878; //elasticity of substitution between domestic goods and importsJP Chen(2012)    
c1oelast = 0.422;//elasticity of substitution between oil and domestic consumption 
c1rhoc = 1/(c1telast -1);//-8.196721; 1.32 US; 
c1rhoo = 1/(c1oelast -1);//1.731 US;
c1phimc = 0;//'c1phimc', 0,100, 'Nonoil Trade Adjustment Costs';... 
c1phioc = 0;//'Adjustment Costs For Oil Demand';...    
c1kelast = 0.5;//K-L sub. elasticity
c1rhov = 1/(c1kelast -1);  
c1omegal = 1; //weight of labor in CES aggregator
c1ratiooyoc = 1.08;//ratio of oil inputs in production to inputs in consumption see FUEL CONSUMPTION FOR RESIDENTIAL AND COMMERCIAL USE (F.Y.1990--2012).xls		
c1shareiy  = 0.284;//investment share of gross output  see average Carsa Investments Japan Usa.xls USA SHAREIY IS PROBABLY WRONG
c1sharegy = 0.14; //government spending share of gross output  see CARSA Government Expenditure USA Japan .xls
c1sharemy = 0.094; //see parmfile_assembled.m
c1shareowy_nominal = 0.0212;//see parmfile_assembled.m
c1alphaop = 0.9999; //related with oil supply 
c1deltao = 0.4; //related with oil supply 
c1less = 0.3333;// share of time spent working
c1phibparm  = 0.0001;// Curvature of bond intermed. cost
c1gamrs = 0.655386;//'c1gamrs',0,0.95,'Policy Rate Smoothing';
c1gamdpc = 0.190719;//'c1gamdpc',.01,10,'Weight on Inflation in Monetary Policy Rule';...
c1gamgdpgap = 0.5 ;//'c1gamgdpgap',0,5,'Weight on Output Gap in Monetary Policy Rule';...  US 0.0000003272               
c1gamrs2 = 0.655386;// monetary policy 0.65533860773213 US
c1gamdpc2 = 0.19071900990448;// monetary policy
c1gamdpwo = 0.000000010292301;// monetary policy 0 US
c1gamomega =0.000000002585413;//monetary policy    US
c1pistar = 1.006651291;//steady State Inflation  is the average mean of dpcexfe_Jp_obs  ...1.0114 US 
c1tauw = 0.1;//Lagged wage indexation 0.000 US
c1taup = 0.1;//Lagged price indexation 0.000 US
c1rsss = 0.009196973;//steady state nominal interest rate is the average mean of fedfunds_jp_obs...   0.01 US 
c1relc2 = 0.5;//relative size of home country 0.5 US see later 

c1omegavy = 0.991;//weight of value added in production 0.9707 US see JP Value added %GDP.xlsx 
c1omegaoc = 0.0079;// see FUEL CONSUMPTION FOR RESIDENTIAL AND COMMERCIAL USE (F.Y.1990--2012).xls
c1omegamc = 0.061;//see REST OF THE WORLD ACCOUNTS (C.Y.2005--12, F.Y.2005--12).xls
c1omegami = 0.32;//see REST OF THE WORLD ACCOUNTS (C.Y.2005--12, F.Y.2005--12).xls
c1omegaoy = 0.0084;//see FUEL CONSUMPTION FOR RESIDENTIAL AND COMMERCIAL USE (F.Y.1990--2012).xls

//additional parameters in sticky price model 
c1iotap = 0.00000045;//lagged price  indexation
c1iotaw = 0.00000032;//lagged wage indexation
c1xip = 0.8139;//Calvo Price Parameter
c1xiw = 0.8899;//Calvo wage Parameter 
c1thetap = 0.10;
c1thetaw  = 0.10;
//c1gamdw  = 0; 

//shocks 

c1rhopitar  = 0.402;// U.S. Monetary Policy, AR(1) coef.';...   
c1scalepitarerr = 0.021;//standard deviation of U.S. Monetary Policy

c1rhogy =  0.5; //'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.';...0.9989
c1scaleshockgyerr = 0.0246; // U.S. Gov. Exp. st. dev. of innovation';....0.0246 Japan 0.15

c1rhozc1  =  0.2162; // Technology, growth AR coef.';...  
c1scalezcerr = 0.00655;// U.S. Technology, st. dev. of innovation';...0.00655
c1rhozc2  =  0.0001; //Technology, level error corr. coef.';...  

c1rhozw1 = 0.01;//World Technology, growth AR coef.
c1scalezwerr = 0.001;//'World Technology, st. dev. of innovation';...  
c1rhozw2  = 0.001;//World Technology, level error corr. coef.';...   

c1rhomuow1 = 0.01;// 'World Oil Demand, growth AR coef.' ;...       
c1rhomuow2 =  0.001;// 'World Oil Demand, level error corr. coef.' ;...  
c1scalemuowerr = 0.001; //'World Oil Demand, st. dev. of innovation';... 
 
c1rhothetapvar =  0.7401; //U.S. Price Markup, AR(1) coef.';...  
c1scalethetapvarerr = 0.4773; //U.S. Price Markup, st. dev. of innovation';...

c1rhothetawvar = 0.9768; // U.S. Wage Markup, AR(1) coef.';...
c1scalethetawvarerr = 3.698; //U.S. Wage Markup, st. dev. of innovation';...

c1rhozi = 0.9059;//Investment Technology, AR coef.';...
c1scalezierr = 0.0265;//U.S. Inv. Tech. st. dev. of innovation';...  0.0265 

c1rhoyo1 =  0.1243;//U.S. Oil Supply, growth AR coef.';...        
c1rhoyo2 = 0.0001;//U.S. Oil Supply, level error corr. coef.';...    
c1scaleyoerr = 0.025;// U.S. Oil Supply, st. dev. of innovation';...   

c1rhomuoc1 =0.0001;//Oil Demand, growth AR coef.';...    
c1rhomuoc2 =  0.0144;//Oil Demand, level error corr. coef.';...   
c1scalemuocerr = 0.047;// U.S. Oil Demand, st. dev. of innovation';...  
  
c1rhomuc =  0.9188; //Consumption Shock, AR(1) coef.';... 
c1scalemucerr = 0.6484;// U.S. Consumption Shock, st. dev. of innovation';... 

c1rhoomegacm1 = 0.0001;// Import, growth AR coef.';...
c1rhoomegacm2 = 0.0019; //Import, level error corr. coef.';...
c1scaleomegacmerr = 0.02684; //U.S. Import, st. dev. of innovation';...

c1phioy   = c1phioc;

c2sigma = 1.5;
c2vkappa  = 0.8; 
c2grmuzss = c1grmuzss;
c2psii  = 3.515; 
c2beta  = 0.99; 
c2delta  = 0.025; 
c2rhoc   = 1.32; 
c2rhoo   = 1.731; 
c2phimc  = 0; 
c2phioc  = 0; 
c2grmuoss = c1grmuoss;
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;
c2shareoy =  0.045; 
c2alphaop = 0.9999; 
c2deltao  = 0.4;
c2grmuzoss  = c1grmuzoss;
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; 
c2phioy  = 0;
c2rhothetapvar  = 0.74013; 
c2scalethetapvarerr = 0.477;
c2labshare  = 0.4999; 
c2chi  =  10; 
c2rhothetawvar = 0.9768;
c2scalethetawvarerr = 3.698; 
c2thetap  = 0.10;        
c2thetaw = 0.10; 
c2iotap = 0.00000045;
c2xip  = 0.81;
c2iotaw  = 0.00000032;
c2xiw = 0.89;
c2gamrs  =  0.001;
c2gamdpc  = 0.001;   
c2gamdw  = 1000; 
c2gamrer = 0;
c2gamgdpgap = 0.001; 
c2rhopitar = 0.402; 
c2scalepitarerr = 0.021;

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;
c2rsss = 0.01;
c2muzss = c1muzss; 
c2muoss = c1muoss; 

c1rhoi = c1rhoc;// elasticity of substitution investment imports  
c1shareky = 1/(1-((1-c1delta)/c1muzss))*c1shareiy; //4.898376623;
c1shareoop = (c1beta*(1-c1alphaop)/c1alphaop/(c1muoss-c1beta*(1-c1deltao)))^(1-c1alphaop); //0.9999;
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;  
c1pwoss = c1alphaop * c1shareoop; //0.99906854;  
c1shareowy = c1shareowy_nominal/c1pwoss;//0.040637853; 
c1shareyoy = c1shareowy * 0.3;
c1shareoy = c1shareowy/c1shareowo;
c1shareoyy = c1shareoy*(1-1/(1+c1ratiooyoc));//0.02926573; 
c1sharevy = 1-c1shareoyy; // 0.97073427; 

c1sharecy = 1+c1shareoy-c1shareowy*c1pwoss+c1pwoss*c1shareyoy-c1shareoyy-c1shareiy-c1sharegy;//0.61012; 			
c1shareopow  =   (1/(c1shareoop))/c1shareowo;
c1shareoiow  =  1-1/c1shareoop/c1shareowo; 

c1shareocc = (c1shareoy-c1shareoyy)/c1sharecy; //0.025788799; 
c1sharecnc = 1-c1shareocc;
c1sharemcm = c1sharecnc*c1sharecy/(c1sharecnc*c1sharecy+c1shareiy); //0.748233236; 
c1sharemim = 1-c1sharemcm; 
c1sharemccn = c1sharemy*c1sharemcm/(c1sharecy)/c1sharecnc; //0.151060059;

c1sharemii = c1sharemy * c1sharemim / c1shareiy; //0.151060059; 

c1ratiomimc  = c1sharemim/c1sharemcm;
c1rkstar = c1muzss/c1beta - 1 + c1delta; 
c2rkstar = c2muzss/c2beta - 1 + c2delta; 
c1labshare = c1less/(1-c1less); 
c1chi0 = (c2w)*(c2lambdaq)/((1-(c2l))^(-c2chi)); //0.02; 
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;


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; 


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;

//steady state ratio between nominal GDP and nominal gross output
c1sharengdpny = 1 - c1shareoyy + c1shareyoy;

varexo  
c1shockgyerr
c1zcerr
c1zierr
c1yoerr
c1muocerr
c1mucerr
c1omegacmerr
c2shockgyerr
c2zcerr
c2zierr
c2yoerr
c2muocerr
c2mucerr
c2omegacmerr
c1zwerr
c1muowerr
c2thetapvarerr
c1thetapvarerr
c2thetawvarerr
c1thetawvarerr
c1pitarerr
c2pitarerr;


model;

//////////////////////////////////
// Home country bloc 
//////////////////////////////////



//#c1grmuzoss = c1grmuzss/c1grmuoss;
#c1grmuzss = c1grmuzoss * c1grmuoss;
# c1muoss = c1grmuoss;
# c1muzss = c1grmuzss;
# c1muzoss = c1grmuzoss;


#c1rhoc = 1/(c1telast -1); 
#c1rhoo = 1/(c1oelast -1);
#c1rhoi = c1rhoc;// elasticity of substitution investment imports  

#c2grmuzoss  = c1grmuzoss;
#c2grmuzss = c1grmuzss;
#c2grmuoss = c1grmuoss;

#c2muzss = c1muzss; 
#c2muoss = c1muoss;
#c2muzoss = c2muzss/c2muoss;

#c2rhoc   = c1rhoc; 
#c2rhoo   = c1rhoo;
 
#c1shareky = 1/(1-((1-c1delta)/c1muzss))*c1shareiy; //4.898376623;
#c1shareoop = (c1beta*(1-c1alphaop)/c1alphaop/(c1muoss-c1beta*(1-c1deltao)))^(1-c1alphaop);//0.9999;
#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;  
#c1pwoss = c1alphaop * c1shareoop; //0.99906854;  
#c1shareowy = c1shareowy_nominal/c1pwoss;//0.040637853; 
#c1shareyoy = c1shareowy * 0.3;
#c1shareoy = c1shareowy/c1shareowo;
#c1shareoyy = c1shareoy*(1-1/(1+c1ratiooyoc));//0.02926573; 
#c1sharevy = 1-c1shareoyy; // 0.97073427; 

#c1sharecy = 1+c1shareoy-c1shareowy*c1pwoss+c1pwoss*c1shareyoy-c1shareoyy-c1shareiy-c1sharegy;//0.61012; 			
#c1shareopow  =   (1/(c1shareoop))/c1shareowo;
#c1shareoiow  =  1-1/c1shareoop/c1shareowo; 

#c1shareocc = (c1shareoy-c1shareoyy)/c1sharecy; //0.025788799; 
#c1sharecnc = 1-c1shareocc;
#c1sharemcm = c1sharecnc*c1sharecy/(c1sharecnc*c1sharecy+c1shareiy); //0.748233236; 
#c1sharemim = 1-c1sharemcm; 
#c1sharemccn = c1sharemy*c1sharemcm/(c1sharecy)/c1sharecnc; //0.151060059;

#c1sharemii = c1sharemy * c1sharemim / c1shareiy; //0.151060059; 

#c1ratiomimc  = c1sharemim/c1sharemcm;
#c1rkstar = c1muzss/c1beta - 1 + c1delta; 
#c2rkstar = c2muzss/c2beta - 1 + c2delta; 
#c1labshare = c1less/(1-c1less); 
#c1omegacc =  1 - c1omegaoc; 
#c1omegac =  1 - c1omegamc;
#c1omegai =   1 - c1omegami ;  
#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);
#c2pwoss =  c1pwoss; 
#c2shareowy = c2shareowy_nominal/c2pwoss; //0.035840191;


#c1sharexy   =  c1sharemy+(c1shareowy-c1shareyoy)*c1pwoss; // 0.145613972;    

#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 ;


#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;


#c1mugdpss =(c1muzss+ ( -c1shareoyy+c1shareoy - c1pwoss*c1shareowy + c1pwoss*c1shareyoy)*c1muoss )/( 1 + ( -c1shareoyy+c1shareoy - c1pwoss*c1shareowy + c1pwoss*c1shareyoy) );  //1.005831931; 
#c2mugdpss =(c2muzss+ ( -c2shareoyy+c2shareoy - c2pwoss*c2shareowy + c2pwoss*c2shareyoy)*c2muoss )/( 1 + ( -c2shareoyy+c2shareoy - c2pwoss*c2shareowy + c2pwoss*c2shareyoy) ); // 1.005559766;  


//steady state ratio between nominal GDP and nominal gross output
#c1sharengdpny = 1 - c1shareoyy + c1shareyoy;




// 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);

//1/(1+(c1rs)) = c1beta/c1grmuzss*(exp(c1lambdaq(+1)))/(exp(c1lambdaq))/(1+(c1dpd(+1)));


// 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;


//////////////////////////////////
// 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 JP Production must be zero
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
////////////////////////

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));


//////////////////////////////////
// Home 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));


//////////////////////////////////
// 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 accumultion
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);

// international oil market
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);

// 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;

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

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

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

// 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)));

// 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)));

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

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

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

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

// 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)));

// price inflation definition
log((c1pid)) = log(c1pistar) + (c1dpd); // c1pid gross inflation, c1pistar gross stady state inflation

// 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)));

// 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)));

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

// wage evolution
(1-c1xiw)*((exp(c1wstar))/(exp(c1w)))^(-1/(c1thetaw*(exp(c1thetawvar))))+c1xiw*((c1omegabar(-1))/(c1omega))^(-1/(c1thetaw*(exp(c1thetawvar)))) = 1;

// wage indexation
(c1omegabar) = (c1omega)^c1iotaw*(c1pistar*c1grmuzss)^(1-c1iotaw);

// wage inflation definition
(c1omega) = (exp(c1w))/(exp(c1w(-1)))*c1grmuzss*(c1pid); // c1pid is the gross inflation , c1grmuzss is the gross growth rate technology , c1omega is the gross wage inflation

// 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
////////////////////

//(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)));// net quarterly interest rates 

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

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

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

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


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

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

//(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));



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


// Definition of GDP using the Laspeyres index

c1logdeltagdp =   log((  exp(c1y) - exp(c1rpwopd(-1)) * exp(c1oy) +  exp(c1rpwopd(-1)) * exp(c1yo)) /( exp(c1y(-1)) - exp(c1rpwopd(-1)) * exp(c1oy(-1)) +  exp(c1rpwopd(-1)) * exp(c1yo(-1)) ));// 
c2logdeltagdp = log((  exp(c2y) - exp(c2rpwopd(-1)) * exp(c2oy) +  exp(c2rpwopd(-1)) * exp(c2yo)) /( exp(c2y(-1)) - exp(c2rpwopd(-1)) * exp(c2oy(-1)) +  exp(c2rpwopd(-1)) * exp(c2yo(-1)) ));// 
c1rngdpy =   (1  - exp(c1rpwopd)* exp(c1oy) / exp(c1yd) + exp(c1rpwopd) *  c1shareyoy*c1yss*exp(c1yo) /exp(c1yd));


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

//observation equation for GDP (see Relationships between model variables and observed data in Bodenstein & Guerrieri (2011) appendice and  Pfeifer (2013) )
//log_gdp_jp_obs - log_gdp_jp_obs(-1) = log( (  c1y - c1rpopd(-1) * c1oy +  c1rpopd(-1) * c1yo) /(c1y(-1) - c1rpopd(-1) * c1oy(-1) +  c1rpopd(-1) * c1yo(-1))); 
//log_gdp_for_obs - log_gdp_for_obs(-1) = log( (  c2y - c2rpopd(-1) * c2oy  +  c2rpopd(-1) * c2yo) /(c2y(-1) - c2rpopd(-1) * c2oy(-1) +  c2rpopd(-1) * c2yo(-1))); 

//eq.1
//deltalog_gdp_jp_obs =  log( (c1y - c1rpopd(-1) * c1oy +  c1rpopd(-1) * c1yo )  /  (c1y(-1) - c1rpopd(-1) * c1oy(-1) +  c1rpopd(-1) * c1yo(-1)) )  +  (c1mugdpss - 1); //Original Model Non_demeaned
//deltalog_gdp_for_obs =  log( (c2y - c2rpopd(-1) * c2oy +  c2rpopd(-1) * c2yo) / (c2y(-1) - c2rpopd(-1) * c2oy(-1) +  c2rpopd(-1) * c2yo(-1)) ) +  (c2mugdpss - 1);//Original Model Non_demeaned
//log-deviation of variable xt from its steady state is yhat_t = LN(y_t) - LN(y_steadystate) CONFIRM with PROFESSOR see the logs 
//deltalog_gdp_jp_obs =  log( (c1y - c1rpopd(-1) * c1oy +  c1rpopd(-1) * c1yo ))  - log( (c1y(-1) - c1rpopd(-1) * c1oy(-1) +  c1rpopd(-1) * c1yo(-1)) ) +  (c1mugdpss - 1) ;//matched to non-demeaned growth rate, useful to estimation purposes
//deltalog_gdp_for_obs  =  log( (c2y - c2rpopd(-1) * c2oy +  c2rpopd(-1) * c2yo)) - log( (c2y(-1) - c2rpopd(-1) * c2oy(-1) +  c2rpopd(-1) * c2yo(-1)) ) +  (c2mugdpss - 1) ;//matched to non-demeaned growth rate, useful to estimation purposes

c1logdeltagdp = c1logdeltagdpss;
c2logdeltagdp = c2logdeltagdpss;
c1rngdpy = c1rngdpyss;
c2rngdpy = c2rngdpyss;

deltalog_gdp_jp_obs = c1logdeltagdp +  (c1mugdpss - 1);//matched to non-demeaned growth rate, useful to estimation purposes
deltalog_gdp_for_obs  = c2logdeltagdp +  (c2mugdpss - 1);//matched to non-demeaned growth rate, useful to estimation purposes

//eq.2
dpcexfe_log_jp_obs  =  c1dcore ; //matched to log level  d1core is the net inflation
rer_log_jp_obs  = c1rer ; //matched to log level
dcomp_log_jp_obs  = log(c1omega) ; //matched to growth rate, using (non-demeaned) first differences in order to not being required to take a stance on the mean Pfeifer(2013) pg.59
//c1omega is the gross inflation

fedfunds_jp_obs  = c1rs;// matched to net interest rates in quarterly form
// fedfunds_jp_obs is the net interest rate observation

//fixi_share_jp_obs = c1rpipd * c1i/c1y * (1 / ( 1 - (c1rpopd * c1oy / c1y) + (c1rpopd * c1yo/c1y)) )  ;
fixi_share_jp_obs = ((exp(c1rpipd) * exp(c1i)) / exp(c1yd)) / c1rngdpy;    

//pce_share_jp_obs =  c1rpcpd * c1c  /  c1yd  * ( 1 / c1rngdpy )  ;
pce_share_jp_obs =  (( (exp(c1rpcpd) * exp(c1c)) / exp(c1yd)) /c1rngdpy   ) ;

//exp_share_jp_obs = c1x / c1y  * (1 / ( 1 - ( c1rpopd * c1oy / c1y ) + ( c1rpopd   * c1yo / c1y )) ) ;
exp_share_jp_obs = ( exp(c1x) / exp(c1yd) ) / c1rngdpy  ; 

//imp_share_jp_obs = c1m / c1y  * (1 / ( 1 - ( c1rpopd * c1oy / c1y ) + ( c1rpopd   * c1yo / c1y )) ) ;
imp_share_jp_obs = ( exp(c1m) / exp(c1yd) ) / c1rngdpy; 

oilimp_share_jp_obs = exp(c1rpopd)  * (  exp(c1o) / exp(c1y) - exp(c1yo) / exp(c1y)  ) * (1 / c1rngdpy );
oilprod_jp_deltalog_obs  = c1yo(-1) - c1lagyo(-1) + ( c1grmuoss  - 1 );//matched to non-demeaned growth rate, useful to estimation purposes
//c1yo = (1+c1rhoyo1-c1rhoyo2)*c1yo(-1) - c1rhoyo1*c1lagyo(-1) + c1scaleyoerr*c1yoerr;

oilprod_for_deltalog_obs  =  c2yo(-1) - c2lagyo(-1) + ( c2grmuoss  - 1 );//matched to non-demeaned growth rate, useful to estimation purposes
//c2yo = (1+c2rhoyo1-c2rhoyo2)*c2yo(-1) - c2rhoyo1*c2lagyo(-1) + c2scaleyoerr*c2yoerr;
delta_logoilprice_jp_obs =  c1rpwopd -  c1rpwopd(-1) + ( c1grmuzoss * c1mugdpss  -  c1grmuzss ) / c1grmuzss ; //matched to non-demeaned growth rate, useful to estimation purposes
//log-deviation of variable xt from its steady state is yhat_t = LN(y_t) - LN(y_steadystate) CONFIRM with PROFESSOR
 

fixi_share_for_obs = ((exp(c2rpipd) * exp(c2i)) / exp(c2yd)) / c2rngdpy;    	
imp_share_for_obs = ( exp(c2m) / exp(c2yd) ) / c2rngdpy  ; 	
pce_share_for_obs = (( (exp(c2rpcpd) * exp(c2c)) / exp(c2yd)) /c2rngdpy   ) ;	
gov_share_for_obs  = ( exp(c2g)/ exp(c2yd) ) / c2rngdpy  ; 	
exp_share_for_obs = ( exp(c2x) / exp(c2yd) ) / c2rngdpy  ; 	
gov_share_us_obs = ( exp(c1g)/ exp(c1yd) ) / c1rngdpy  ; 	
hours_log_us_obs = c1l ; 




//Frequency mixed approach
oilprod_jp_deltalog_obs_annual = (oilprod_jp_deltalog_obs(-3) + oilprod_jp_deltalog_obs(-2) + oilprod_jp_deltalog_obs(-1) + oilprod_jp_deltalog_obs)/4;				
end;

//*90/365
//*91/365
//*92/365
//*92/365

steady;



shocks;
var c1shockgyerr; stderr 1;
var c1zcerr; stderr 1;
var c1zierr; stderr 1;
//var c1yoerr = 0;
var c1yoerr; stderr 1;
var c1muocerr; stderr 1;
var c1mucerr; stderr 1;
var c1omegacmerr; stderr 1;
var c2shockgyerr; stderr 1;
var c2zcerr; stderr 1;
var c2zierr; stderr 1;
//var c2yoerr = 0;
var c2yoerr; stderr 1;
var c2muocerr; stderr 1;
var c2mucerr; stderr 1;
var c2omegacmerr; stderr 1;
var c1zwerr; stderr 1;
var c1muowerr; stderr 1;
var c2thetapvarerr; stderr 1;
var c1thetapvarerr; stderr 1;
var c2thetawvarerr; stderr 1;
var c1thetawvarerr; stderr 1;
var c1pitarerr; stderr 1;
var c2pitarerr; stderr 1;
end;

varobs
//log_oil_price;
//delta_logoilprice;
dpcexfe_log_jp_obs   dcomp_log_jp_obs rer_log_jp_obs deltalog_gdp_jp_obs imp_share_jp_obs exp_share_jp_obs pce_share_jp_obs oilimp_share_jp_obs 
fixi_share_jp_obs oilprod_jp_deltalog_obs  oilprod_for_deltalog_obs  delta_logoilprice_jp_obs deltalog_gdp_for_obs fedfunds_jp_obs;


estimated_params;
           
c1omegaoc, .0079, , , normal_pdf, 0.0079, 0.005; // weight on oil in consumption see FUEL CONSUMPTION FOR RESIDENTIAL AND COMMERCIAL USE (F.Y.1990--2012).xls					     
c1omegaoy, .0084, , , normal_pdf, 0.0084, 0.005; // weight on oil in production see FUEL CONSUMPTION FOR RESIDENTIAL AND COMMERCIAL USE (F.Y.1990--2012).xls					
c1omegamc, .061, , , normal_pdf, 0.061, 0.002; // weight on imports in consumption see REST OF THE WORLD ACCOUNTS (C.Y.2005--12, F.Y.2005--12) .xls 
c1omegami, .32, , , normal_pdf, 0.32, 0.001; // weight on imports in investment see REST OF THE WORLD ACCOUNTS (C.Y.2005--12, F.Y.2005--12) .xls             



/*      
      //c1grmuzss, 1.0058, ,  ,normal_pdf, 1.0058, 0.001;//'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...        
 
    
    //c2omegaoc, .041, , ,  normal_pdf, 0.041, 0.01; // weight on oil in consumption CALIBRATED 
    //c2omegaoy,.057, , , normal_pdf, 0.057, 0.01; // weight on oil in production CALIBRATED
    //c2omegamc, .039, , , normal_pdf, 0.039, 0.01; // weight on imports in consumption CALIBRATED
    //c2grmuzss, 1.0058, ,  ,normal_pdf, 1.0058, 0.001; // Technology, level error correlation coefficient 
    //c2omegami, .25, , , normal_pdf, 0.25, 0.1; // weight on imports in investment CALIBRATED  


c1delta, 1, , ,normal_pdf, 0, 1;           
c1beta, 1, , ,normal_pdf, 0, 2; //'c1beta',0.95,1.01,'Discount Factor';
c1phimc, 1, , ,normal_pdf, 0, 2;//'c1phimc', 0,100, 'Nonoil Trade Adjustment Costs';... Stevens Phd
c1phioc, 1, , ,gamma_pdf, .5, .15;//'c1phioc', 0, 100, 'Adjustment Costs For Oil Demand';... Stevens Phd  


c1grmuoss, , , ,normal_pdf, 1.003771117, .005;// growth of oil supply steady state calibrated parameter...steady state calibrated parameter
c1grmuzoss, , , ,normal_pdf, 1.009843865, .0015;//;// price of oil growth...steady state calibrated parameter 
      //c1grmuzss = c1grmuzoss * c1grmuoss;//'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...steady state calibrated parameter
c1vkappa, , , , beta_pdf, .60, 0.15;//'c1vkappa', 0.0, 0.98,'Habits in Consumption';... US 0.6512  Bank of Japan 2010 
      //c1psii, , , , gamma_pdf, 2, 1; //'c1psii',0,50,'Investment Adjustment Cost';...   Bank of Japan 2010 PROBLEM
c1telast, , , ,normal_pdf, .878, .8; //elasticity of substitution between domestic goods and imports 
c1oelast, 1, , ,gamma_pdf, .5, .45; //elasticity of substitution between oil and domestic consumption Stevens Phd
c1kelast, , , ,normal_pdf, .5, .45;//K-L elasticity of substitution;
c1omegal, , , ,normal_pdf, 1, .8;//weight of labor in CES aggregator
c1less, , , ,normal_pdf, .333, .3;//share of time spent working
c1chi, , , ,normal_pdf, 59.54, 15;//determines labor supply elasticity
            //c1iotap, , , ,normal_pdf, 0.00000045, .000000025;//lagged price  indexation
            // c1iotaw, , , ,normal_pdf, 0.00000045, .000000032;//lagged wage indexation
c1xip, , , , beta_pdf, .81, 0.15;//Calvo Price Parameter  Hirose(2014)
            //c1xiw, , , , beta_pdf, .889, 0.15;//Calvo wage Parameter Hirose(2014)
c1thetap, , , , gamma_pdf, .1, 0.05;
c1thetaw, , , , gamma_pdf, .1, 0.05;

c1gamrs, , , , beta_pdf, .7, .15;//'c1gamrs',0,0.95,'Policy Rate Smoothing'; 0.655386 Bank of Japan (2010)
c1gamdpc, , , , normal_pdf, 1.5, .5;//'c1gamdpc',.01,10,'Weight on Inflation in Monetary Policy Rule';...US 0.190719  Bank of Japan(2010) SAME MONETARY RULE
c1gamgdpgap, , , , normal_pdf, .5 , .1;// US'Weight on Output Gap in Monetary Policy Rule';...  US 3.272048001401e-007 1 Bank of Japan (2010)
c1tauw, , , , beta_pdf, .1, .015;//Lagged wage indexation Hirose(2014)
c1taup, , , , beta_pdf, .1, .05;//Lagged price indexation Hirose(2014)
c1gamrs2, , , , beta_pdf, .7, .15;//monetary policy 0.65533860773213 US
c1gamdpc2, , , , normal_pdf, 1.5, .5;// monetary policy
      //c1gamdpwo, , , , gamma_pdf, .1, .01;//monetary policy 0.000000010292301 US
      //c1gamomega,0.000000002585413 , , , gamma_pdf, 0.000000002585413,  0.0000000002;//monetary policy 0.000000002585413 US

c1pistar, 1.006651291 , , ,normal_pdf, 1.006651291, .1; //steady State Inflation'; Hirose(2014) ... average mean of dpcexfe_Jp_obs
c1rsss, 0.009196973, , ,normal_pdf, 0.009196973, .001;//steady state real interest rate  Hirose(2014).... 0.01 US  average mean of fedfunds_Jp_obs

c1rhopitar, 0.402, , , normal_pdf, .5, .15;//U.S. Monetary Policy, AR(1) coef.';... Hirose(2014)
c1scalepitarerr,0.021 , , ,inv_gamma_pdf, 0.021 , 0.02;//standard deviation of U.S. Monetary Policy
                                  // c1scalepitarerr,0.021 , , ,normal_pdf, 0.021 , 0.02;//standard deviation of U.S. Monetary Policy


c1rhozi, 0.9059, , , normal_pdf, .9, 0.1;//Investment Technology, AR coef.';...   Bank of Japan (2010)
c1scalezierr, 0.0265, , , inv_gamma_pdf, 0.0265, 0.02;//U.S. Inv. Tech. st. dev. of innovation';...Bank of Japan (2010) 
//c1scalezierr,0.0265 , , ,normal_pdf, 0.0265, 0.02;//standard deviation of U.S. Monetary Policy


   c1rhogy, 0.5, , , beta_pdf, 0.5, .15;//'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.';... 0.9989 US Bank of Japan (2010)
  c1scaleshockgyerr, 0.0246, , , inv_gamma_pdf, 0.0246, 0.02;//U.S. Gov. Exp. st. dev. of innovation';  Bank of Japan (2010)...
//c1scaleshockgyerr, 0.0246, , , normal_pdf, 0.0246, 0.05;//U.S. Gov. Exp. st. dev. of innovation';  Bank of Japan (2010)...


c1rhozc1, 0.2162, , , normal_pdf, .2162, .015;//0.2162 US // Technology, growth AR coef.';...  
c1rhozc2, 0.0001, , , normal_pdf, 0.0001, 0.0001;//Technology, level error corr. coef.';... 0.0001 US 
c1scalezcerr, , , , inv_gamma_pdf, 0.00655, 0.00005;//U.S. Technology, st. dev. of innovation';... 0.00655 US  0.005
            // c1scalezcerr, , , , normal_pdf, 0.00655, 0.00005;//U.S. Technology, st. dev. of innovation';... 0.00655 US  0.005


c1rhozw1, , , , normal_pdf, .01, .05;//World Technology, growth AR coef. ... 0.01 US Bank of Japan (2010)
c1rhozw2, , , , normal_pdf, .01, .03;//World Technology, level error corr. coef.';... 0.001 US  Bank of Japan (2010)
c1scalezwerr, 0.001, , , inv_gamma_pdf, 0.001, 0.0005;//'World Technology, st. dev. of innovation';... 0.001 US
         //c1scalezwerr, 0.001, , , normal_pdf, 0.001, 0.05;//'World Technology, st. dev. of innovation';... 0.001 U


c1rhomuow1, , , , normal_pdf, .001, .0015;// 'World Oil Demand, growth AR coef.' ;...  0.001 US     
c1rhomuow2, , , , normal_pdf, .001, .0015;// 'World Oil Demand, level error corr. coef.' ;... 0.001 US  
c1scalemuowerr, 0.001, , , inv_gamma_pdf, 0.001, 0.0005;//'World Oil Demand, st. dev. of innovation';... 0.001 US
//c1scalemuowerr, 0.001, , , normal_pdf, 0.001, 0.0005;//'World Oil Demand, st. dev. of innovation';... 0.001 US

c1rhothetapvar, 0.07401, , , beta_pdf, .07401, .015;//U.S. Price Markup, AR(1) coef.';... 0.7401 US
c1scalethetapvarerr, 0.4773, , , inv_gamma_pdf, 0.4773, 0.05;//U.S. Price Markup, st. dev. of innovation';... 0.4773 US  0.5
//c1scalethetapvarerr, 0.4773, , , normal_pdf, 0.4773, 0.05;//U.S. Price Markup, st. dev. of innovation';... 0.4773 US  0.5

c1rhothetawvar, 0.9768, , , normal_pdf, 0.9768, .15; // U.S. Wage Markup, AR(1) coef.';...0.9768 US Hirose(2014)
c1scalethetawvarerr, , , , inv_gamma_pdf, 3.698, 1; //U.S. Wage Markup, st. dev. of innovation';... 3.698 US Hirose(2014)  3
//c1scalethetawvarerr, , , , normal_pdf, 3.698, 1; //U.S. Wage Markup, st. dev. of innovation';... 3.698 US Hirose(2014)  3

c2rhoyo1, 0.0001, , , normal_pdf, 0.0001, .13;//World Oil Supply, growth AR coef.';... 0.1243 US      
c2rhoyo2, 0.0001, , , normal_pdf, 0.0001, .0005;//World Oil Supply, level error corr. coef.';... 0.0001 US    
        //c2scaleyoerr, 0.0001, , , inv_gamma_pdf, 0.0001, 0.0001; //World Oil Supply, st. dev. of innovation';... 0.025 US THIS
       c2scaleyoerr, 0.0001, , , normal_pdf, 0.0001, 0.0001; //World Oil Supply, st. dev. of innovation';... 0.025 US

c1rhoyo1, 0.1243, , , normal_pdf, 0.1243, .13;//U.S. Oil Supply, growth AR coef.';... 0.1243 US      
c1rhoyo2, 0.0001, , , normal_pdf, 0.0001, .0005;//U.S. Oil Supply, level error corr. coef.';... 0.0001 US   
c1scaleyoerr, 0.025, , , inv_gamma_pdf, 0.025, 0.001; // U.S. Oil Supply, st. dev. of innovation';... 0.025 US
//c1scaleyoerr, 0.025, , , normal_pdf, 0.025, 0.001; // U.S. Oil Supply, st. dev. of innovation';... 0.025 US

c1rhomuoc1, 0.0001, , , normal_pdf, 0.0001, .0005; //Oil Demand, growth AR coef.';... 0.0001 US 
c1rhomuoc2, 0.0144, , , normal_pdf, 0.0144, .09; //Oil Demand, level error corr. coef.';... 0.0144 US  
c1scalemuocerr, 0.047, , , inv_gamma_pdf, 0.047,0.04 ; // U.S. Oil Demand, st. dev. of innovation';... 0.047 US 0.5
//c1scalemuocerr, 0.047, , , normal_pdf, 0.047,0.05 ; // U.S. Oil Demand, st. dev. of innovation';... 0.047 US 0.5

c2rhomuoc1, 0.0001, , , normal_pdf, 0.0001, .0005; //Oil Demand, growth AR coef.';... 0.0001 US 
c2rhomuoc2, 0.0144, , , normal_pdf, 0.0144, .09; //Oil Demand, level error corr. coef.';... 0.0144 US  
c2scalemuocerr, 0.047, , , inv_gamma_pdf, 0.047, 0.04; // U.S. Oil Demand, st. dev. of innovation';... 0.047 US
//c2scalemuocerr, 0.047, , , normal_pdf, 0.047, 0.05; // U.S. Oil Demand, st. dev. of innovation';... 0.047 US
 
c1rhomuc , 0.9188, , , beta_pdf, 0.9188, .05; //Consumption Shock, AR(1) coef.';... 0.9188 US
c1scalemucerr, 0.6484, , , inv_gamma_pdf, 0.6484, 0.5; // U.S. Consumption Shock, st. dev. of innovation';... 0.6484 US
//c1scalemucerr, 0.6484, , , normal_pdf, 0.6484, 0.5; // U.S. Consumption Shock, st. dev. of innovation';... 0.6484 US


c2rhomuc , 0.9188, , , beta_pdf, 0.9188, .05; //Consumption Shock, AR(1) coef.';... 0.9188 US
c2scalemucerr, 0.6484, , , inv_gamma_pdf, 0.6484, 0.5; // U.S. Consumption Shock, st. dev. of innovation';... 0.6484 US
//c2scalemucerr, 0.6484, , , normal_pdf, 0.6484, 0.5; // U.S. Consumption Shock, st. dev. of innovation';... 0.6484 US

c1rhoomegacm1, 0.0001, , , normal_pdf, 0.0001, .009; // Import, growth AR coef.';... 0.0001 US Hirose(2014)
c1rhoomegacm2, 0.0019, , , normal_pdf, 0.0019, .04; //Import, level error corr. coef.';... 0.0019 US  Hirose(2014)
c1scaleomegacmerr , 0.02684, , , inv_gamma_pdf, 0.02684, 0.01;  //U.S. Import, st. dev. of innovation';... 0.02684; US Hirose(2014)
//c1scaleomegacmerr , 0.02684, , , normal_pdf, 0.02684, 0.05;  //U.S. Import, st. dev. of innovation';... 0.02684; US Hirose(2014)
*/
end;

           
estimated_params_init(use_calibration);
end;

check;

estimation(optim=('MaxIter',200), datafile=observationjpdat,  xls_sheet=Sheet1, xls_range=A2:N158, mode_compute=4, prefilter=0,mh_replic=200,mh_nblocks=2,mh_jscale=0.15)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;
























c1omegaoc = c1shareocc; %given by def_parm_assembled (c1shareoy-c1shareoyy)/c1sharecy; %
c1omegacc = 1-c1omegaoc; 
c1omegamc =  c1sharemccn; %given by def_parm_assembled  c1sharemy*c1sharemcm/(c1sharecy)/c1sharecnc; 
c1omegac = 1-c1omegamc; 
c1omegami = c1sharemii;
c1omegai  = 1-c1omegami;
c1muzss = c1muzss;
c1muzoss = c1muzoss;

c1beta = c1muzss/1.01;       % discount factor that yields a 4% interest rate


c1lss = c1less;
c1yss = 1/(c1sharely/c1less); % given by def_parm_assembled


c1rpopdss = 1;

c1ydss = c1yss;
c1iss = c1shareiy*c1ydss;
c1kss = 1/(1-(1-c1delta)/c1muzss)*c1shareiy*c1ydss;
c1css = c1sharecy*c1ydss;
c1cness = c1omegacc*c1css;
c1ocss = c1omegaoc*c1css;
c1cdss = c1omegac*c1cness;
c1mcss = c1omegamc*c1cness;
c1idss = c1omegai*c1iss;
c1miss = c1omegami*c1iss;
c1omegaoy = c1shareoyy;
c1omegavy = 1-c1omegaoy;
c1oyss = c1omegaoy*c1ydss;
c1vss = c1omegavy*c1ydss;
c1oss = c1ocss+c1oyss;
c1mss = c1miss+c1mcss;
c1gss = c1sharegy*c1ydss;
c1xss = c1sharexy*c1ydss;

c1owss = c1shareowy*c1ydss;
c1opss = c1shareopow*c1owss;
c1osss = 1/c1shareopos*c1opss; 
c1oiss = c1shareoiow*c1owss;
c1rpwopdss = c1pwoss;

c1logdeltagdpss = 0;

c1rngdpyss = 1  - c1rpwopdss* c1oyss / c1ydss + c1rpwopdss * c1shareyoy*c1ydss / c1ydss;



c1tbalss = (c1xss-c1mss+c1rpwopdss*(c1shareyoy*c1ydss-c1owss))/c1ydss;
c1gtbalss = (c1xss-c1mss)/c1ydss;

%prices
c1dpdss = 0;
c1pitar = 0;
c1dwss = 0;

c1lambdaqss = (c1css-c1vkappa/c1muzss*c1css)^(-1);


c1rkss = c1muzss/c1beta-1+c1delta;
c1wss = c1rkss/((c1omegak*c1sharevy/c1shareky*c1muzss)/(c1omegal*c1sharevy/c1sharely))^(c1rhov/(1+c1rhov));

c1rrsss = 1/(c1beta/c1muzss)-1;
c1rsss = 1/(c1beta/c1muzss)-1;
c1rpipdss = 1;
c1rpcpdss = 1;
c1rpnepdss = 1;
c1rpmipdss = 1;
c1rpmcpdss = 1;
c1qss = 1;
c1tauw = c1thetaw;
c1taup = c1thetap;
c1wdesss = (1+c1tauw)/(1+c1thetaw)*c1wss;
c1rmcpdss = (1+c1taup)/(1+c1thetap);
%c1chi0ss = (c1wdesss)*(c1lambdaqss)/((1-(c1lss))^(-c1chi));
c1chi0 = (c1wdesss)*(c1lambdaqss)/((1-(c1lss))^(-c1chi));
c1rhoi = c1rhoc;

c1rerss = 1;
c1bss = 0;
%c1phibparm = c1phib;  

c1zcss = 0;
c1zclagss = 0;
c1ziss = 0;
c1yoss = 0;
c1lagyoss = 0;
c1dyoss = 0;%c1muzoss;
c1muocss = 0;
c1lagmuocss = 0;
c1mucss = 0;
c1omegacmss = 0;
c1lagomegacmss = 0;
c1omegaimss = c1omegacmss;
c1thetapvarss = 0;
c1thetawvarss = 0;
c1pitarss = 0;
c1zwss = 0;
c1zss = c1zcss + c1zwss;
c1zwlagss = c1zwss;
c1muowss = 0;
c1muowlagss = c1muowss;
c1muoss = c1muocss + c1muowss;
c1shockgyss = 0;

c1grmuoss = c1muoss;
%c1muoss = c1grmuoss;
c1grmuzss = c1muzss;
%c1muzss = c1grmuzss;

%c1muzoss = c1muzss/c1muoss;
%c1grmuzoss = c1grmuzss/c1grmuoss;
c1grmuzoss = c1muzoss;%c1muzoss;


c1welfss = (log(c1css-c1vkappa/c1grmuzss*c1css)+ c1chi0/(1-c1chi)*(1-c1lss)^(1-c1chi))/(1-c1beta);

c1omegaoc = c1shareocc; %given by def_parm_assembled (c1shareoy-c1shareoyy)/c1sharecy; %
c1omegacc = 1-c1omegaoc; 
c1omegamc =  c1sharemccn; %given by def_parm_assembled  c1sharemy*c1sharemcm/(c1sharecy)/c1sharecnc; 
c1omegac = 1-c1omegamc; 
c1omegami = c1sharemii;
c1omegai  = 1-c1omegami;

c1muzss = c1muzss;
c1muzoss = c1muzoss;
c1beta = c1muzss/1.01;       % discount factor that yields a 4% interest rate

%quantities

c1l_potss = c1less;
c1y_potss = 1/(c1sharely/c1less); % given by def_parm_assembled
c1rpopd_potss = 1;
c1yd_potss = c1y_potss;
c1i_potss = c1shareiy*c1yd_potss;
c1k_potss = 1/(1-(1-c1delta)/c1muzss)*c1shareiy*c1yd_potss;
c1c_potss = c1sharecy*c1yd_potss;
c1cne_potss = c1omegacc*c1c_potss;
c1oc_potss = c1omegaoc*c1c_potss;
c1cd_potss = c1omegac*c1cne_potss;
c1mc_potss = c1omegamc*c1cne_potss;
c1id_potss = c1omegai*c1i_potss;
c1mi_potss = c1omegami*c1i_potss;
c1omegaoy = c1shareoyy;
c1omegavy = 1-c1omegaoy;
c1oy_potss = c1omegaoy*c1yd_potss;
c1v_potss = c1omegavy*c1yd_potss;
c1o_potss = c1oc_potss+c1oy_potss;
c1m_potss = c1mi_potss+c1mc_potss;
c1g_potss = c1sharegy*c1yd_potss;
c1x_potss = c1sharexy*c1yd_potss;

c1ow_potss = c1shareowy*c1yd_potss;
c1op_potss = c1shareopow*c1ow_potss;
c1os_potss = 1/c1shareopos*c1op_potss; 
c1oi_potss = c1shareoiow*c1ow_potss;
c1rpwopd_potss = c1pwoss;

c1logdeltagdp_potss = 0;

c1rngdpy_potss = 1  - c1rpwopd_potss* c1oy_potss / c1yd_potss + c1rpwopd_potss * c1shareyoy*c1yd_potss / c1yd_potss;



c1tbal_potss = (c1x_potss-c1m_potss+c1rpwopd_potss*(c1shareyoy*c1yd_potss-c1ow_potss))/c1yd_potss;
c1gtbal_potss = (c1x_potss-c1m_potss)/c1yd_potss;

%prices
c1dpd_potss = 0;
c1pitar = 0;
c1dw_potss = 0;

c1lambdaq_potss = (c1c_potss-c1vkappa/c1muzss*c1c_potss)^(-1);

c1rk_potss = c1muzss/c1beta-1+c1delta;
c1w_potss = c1rk_potss/((c1omegak*c1sharevy/c1shareky*c1muzss)/(c1omegal*c1sharevy/c1sharely))^(c1rhov/(1+c1rhov));

c1rrs_potss = 1/(c1beta/c1muzss)-1;
c1rs_potss = 1/(c1beta/c1muzss)-1;
c1rpipd_potss = 1;
c1rpcpd_potss = 1;
c1rpnepd_potss = 1;
c1rpmipd_potss = 1;
c1rpmcpd_potss = 1;
c1q_potss = 1;
c1tauw = c1thetaw;
c1taup = c1thetap;
c1wdes_potss = (1+c1tauw)/(1+c1thetaw)*c1w_potss;
c1rmcpd_potss = (1+c1taup)/(1+c1thetap);
%c1chi0ss = (c1wdesss)*(c1lambdaqss)/((1-(c1lss))^(-c1chi));
c1chi0 = (c1wdesss)*(c1lambdaqss)/((1-(c1lss))^(-c1chi));
c1rhoi = c1rhoc;

c1rer_potss = 1;
c1b_potss = 0;
%c1phibparm = c1phib;  

c1zc_potss = 0;
c1zclag_potss = 0;
c1zi_potss = 0;
c1yo_potss = 0;
c1lagyo_potss = 0;
c1dyo_potss = 0;%c1muzoss;
c1muoc_potss = 0;
c1lagmuoc_potss = 0;
c1muc_potss = 0;
c1omegacm_potss = 0;
c1lagomegacm_potss = 0;
c1omegaim_potss = c1omegacm_potss;
c1thetapvar_potss = 0;
c1thetawvar_potss = 0;
c1pitar_potss = 0;
c1zw_potss = 0;
c1z_potss = c1zc_potss + c1zw_potss;
c1zwlag_potss= c1zw_potss;
c1muow_potss = 0;
c1muowlag_potss = c1muow_potss;
c1muo_potss = c1muoc_potss + c1muow_potss;
c1shockgy_potss = 0;


c1grmuoss = c1muoss;
%c1muoss = c1grmuoss;
c1grmuzss = c1muzss;
%c1muzss = c1grmuzss;

%c1muzoss = c1muzss/c1muoss;
%c1grmuzoss = c1grmuzss/c1grmuoss;
c1grmuzoss = c1muzoss;%c1muzoss;


%c1welf_potss = (log(c1c_potss-c1vkappa/c1grmuzss*c1c_potss)+ c1chi0/(1-c1chi)*(1-c1l_potss)^(1-c1chi))/(1-c1beta);


c2omegaoc = c2shareocc; %c2shareocc given by def_parm_assembled (c2shareoy-c2shareoyy)/c2sharecy; 
c2omegacc = 1-c2omegaoc; 
c2omegamc = c2sharemccn; %given by def_parm_assembled c2sharemy*c2sharemcm/(c2sharecy)/c2sharecnc; 
c2omegac = 1-c2omegamc; 
c2omegami = c2sharemii;
c2omegai  = 1-c2omegami;

c2muzss = c2muzss;
c2muzoss = c2muzoss;

%quantities
c1beta = c1muzss/1.01; % discount factor that yields a 4% interest rate

c2lss = c2less;
c2yss = 1/(c2sharely/c2less); % given by def_parm_assembled
c2rpopdss = 1;

c2ydss = c2yss;
c2iss = c2shareiy*c2ydss;
c2kss = 1/(1-(1-c2delta)/c2muzss)*c2shareiy*c2ydss;
c2css = c2sharecy*c2ydss;
c2cness = c2omegacc*c2css;
c2ocss = c2omegaoc*c2css;
c2cdss = c2omegac*c2cness;
c2mcss = c2omegamc*c2cness;
c2idss = c2omegai*c2iss;
c2miss = c2omegami*c2iss;
c2omegaoy = c2shareoyy;
c2omegavy = 1-c2omegaoy;
c2oyss = c2omegaoy*c2ydss;
c2vss = c2omegavy*c2ydss;
c2oss = c2ocss+c2oyss;
c2mss = c2miss+c2mcss;
c2gss = c2sharegy*c2ydss;
c2xss = c2sharexy*c2ydss;

c2owss = c2shareowy*c2ydss;
c2opss = c2shareopow*c2owss;
c2osss = 1/c2shareopos*c2opss; 
c2oiss = c2shareoiow*c2owss;
c2rpwopdss = c2pwoss;
c2logdeltagdpss = 0;

c2rngdpyss = 1 - c2rpwopdss* c2oyss / c2ydss + c2rpwopdss * c2shareyoy*c2ydss / c2ydss;


c2tbalss = (c2xss-c2mss+c2rpwopdss*(c2shareyoy*c2ydss-c2owss))/c2ydss;
c2gtbalss = (c2xss-c2mss)/c2ydss;

%prices
c2dpdss = 0;
c2pitar = 0;
c2dwss = 0;

c2lambdaqss = (c2css-c2vkappa/c2muzss*c2css)^(-1);

c2rkss = c2muzss/c2beta-1+c2delta;
c2wss = c2rkss/((c2omegak*c2sharevy/c2shareky*c2muzss)/(c2omegal*c2sharevy/c2sharely))^(c2rhov/(1+c2rhov));

c2rrsss = 1/(c2beta/c2muzss)-1;
c2rsss = 1/(c2beta/c2muzss)-1;
c2rpipdss = 1;
c2rpcpdss = 1;
c2rpnepdss = 1;
c2rpmipdss = 1;
c2rpmcpdss = 1;
c2qss = 1;
c2tauw = c2thetaw;
c2taup = c2thetap;
c2wdesss = (1+c2tauw)/(1+c2thetaw)*c2wss;
c2rmcpdss = (1+c2taup)/(1+c2thetap);
%c2chi0ss = (c2wdesss)*(c2lambdaqss)/((1-(c2lss))^(-c2chi));
c2chi0 = (c2wdesss)*(c2lambdaqss)/((1-(c2lss))^(-c2chi));
c2rhoi = c2rhoc;

c2rerss = 1;
c2bss = 0;

c2zcss = 0;
c2zclagss = 0;
c2ziss = 0;
c2yoss = 0;
c2lagyoss = 0;
c2dyoss = 0; %c2muzoss;%0;
c2muocss = 0;
c2lagmuocss = 0;
c2mucss = 0;
c2omegacmss = 0;
c2lagomegacmss = 0;
c2omegaimss = c2omegacmss;
c2thetapvarss = 0;
c2thetawvarss = 0;
c2pitarss = 0;
c2zwss = 0;
c2zss = c2zcss + c2zwss;
c2zwlagss = c2zwss;
c2muowss = 0;
c2muowlagss = c2muowss;
c2muoss = c2muocss + c2muowss;
c2shockgyss = 0;

c2grmuoss = c2muoss;
%c2muoss = c2grmuoss;
c2grmuzss = c2muzss;
%c2muzss = c2grmuzss;

%c2muzoss = c2muzss/c2muoss;
%c2grmuzoss = c2grmuzss/c2muzoss;
c2grmuzoss = c2muzoss;%c2muzoss;

c2pistar = c1pistar;

c2welfss = (log(c2css-c2vkappa/c2grmuzss*c2css)+ c2chi0/(1-c2chi)*(1-c2lss)^(1-c2chi))/(1-c2beta);


%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);

%quantities

c2muzss = c2muzss;
c2muzoss = c2muzoss;
c1beta = c1muzss/1.01;       % discount factor that yields a 4% interest rate

c2l_potss = c2less;
c2y_potss = 1/(c2sharely/c2less); % given by def_parm_assembled

c2rpopd_potss = 1;

c2yd_potss = c2y_potss;
c2i_potss = c2shareiy*c2yd_potss;
c2k_potss = 1/(1-(1-c2delta)/c2muzss)*c2shareiy*c2yd_potss;
c2c_potss = c2sharecy*c2yd_potss;
c2cne_potss = c2omegacc*c2c_potss;
c2oc_potss = c2omegaoc*c2c_potss;
c2cd_potss = c2omegac*c2cne_potss;
c2mc_potss = c2omegamc*c2cne_potss;
c2id_potss = c2omegai*c2i_potss;
c2mi_potss = c2omegami*c2i_potss;
c2omegaoy = c2shareoyy;
c2omegavy = 1-c2omegaoy;
c2oy_potss = c2omegaoy*c2yd_potss;
c2v_potss = c2omegavy*c2yd_potss;
c2o_potss = c2oc_potss+c2oy_potss;
c2m_potss = c2mi_potss+c2mc_potss;
c2g_potss = c2sharegy*c2yd_potss;
c2x_potss = c2sharexy*c2yd_potss;

c2ow_potss = c2shareowy*c2yd_potss;
c2op_potss = c2shareopow*c2ow_potss;
c2os_potss = 1/c2shareopos*c2op_potss; 
c2oi_potss = c2shareoiow*c2ow_potss;
c2rpwopd_potss = c2pwoss;
c2logdeltagdp_potss = 0;

c2rngdpy_potss = 1  - c2rpwopd_potss* c2oy_potss / c2yd_potss + c2rpwopd_potss * c2shareyoy*c2yd_potss / c2yd_potss;


c2tbal_potss = (c2x_potss-c2m_potss+c2rpwopd_potss*(c2shareyoy*c2yd_potss-c2ow_potss))/c2yd_potss;
c2gtbal_potss = (c2x_potss-c2m_potss)/c2yd_potss;

%prices
c2dpd_potss = 0;
c2pitar = 0;
c2dw_potss = 0;

c2lambdaq_potss = (c2c_potss-c2vkappa/c2muzss*c2c_potss)^(-1);

c2rk_potss = c2muzss/c2beta-1+c2delta;
c2w_potss = c2rk_potss/((c2omegak*c2sharevy/c2shareky*c2muzss)/(c2omegal*c2sharevy/c2sharely))^(c2rhov/(1+c2rhov));

c2rrs_potss = 1/(c2beta/c2muzss)-1;
c2rs_potss = 1/(c2beta/c2muzss)-1;
c2rpipd_potss = 1;
c2rpcpd_potss = 1;
c2rpnepd_potss = 1;
c2rpmipd_potss = 1;
c2rpmcpd_potss = 1;
c2q_potss = 1;
c2tauw = c2thetaw;
c2taup = c2thetap;
c2wdes_potss = (1+c2tauw)/(1+c2thetaw)*c2w_potss;
c2rmcpd_potss = (1+c2taup)/(1+c2thetap);
%c2chi0ss = (c2wdesss)*(c2lambdaqss)/((1-(c2lss))^(-c2chi));
c2chi0 = (c2wdesss)*(c2lambdaqss)/((1-(c2lss))^(-c2chi));

c2rhoi = c2rhoc;
c2rer_potss = 1;
c2b_potss = 0;

c2zc_potss = 0;
c2zclag_potss = 0;
c2zi_potss = 0;
c2yo_potss = 0;
c2lagyo_potss = 0;
c2dyo_potss = 0;%c2muzoss;
c2muoc_potss = 0;
c2lagmuoc_potss = 0;
c2muc_potss = 0;
c2omegacm_potss = 0;
c2lagomegacm_potss = 0;
c2omegaim_potss = c2omegacm_potss;
c2thetapvar_potss = 0;
c2thetawvar_potss = 0;
c2pitar_potss = 0;
c2zw_potss= 0;
c2z_potss = c2zc_potss + c2zw_potss;
c2zwlag_potss = c2zw_potss;
c2muow_potss = 0;
c2muowlag_potss = c2muow_potss;
c2muo_potss = c2muoc_potss + c2muow_potss;
c2shockgy_potss = 0;


c2grmuoss = c2muoss;
%c2muoss = c2grmuoss;
c2grmuzss = c2muzss;
%c2muzss = c2grmuzss;

%c2muzoss = c2muzss/c2muoss;
%c2grmuzoss = c2grmuzss/c2grmuoss;
c2grmuzoss = c2muzoss;


c2pistar = c1pistar;
%c2welf_potss = (log(c2c_potss-c2vkappa/c2grmuzss*c2c_potss)+ c2chi0/(1-c2chi)*(1-c2l_potss)^(1-c2chi))/(1-c2beta);




c1welf = c1welfss;
c2welf = c2welfss;
c1lambdaq = log(c1lambdaqss);
c1q = log(c1qss);
c1i = log(c1iss);
c1k = log(c1kss);
c1c = log(c1css);
c1cne = log(c1cness);
c1cd = log(c1cdss);
c1mc = log(c1mcss);
c1oc = log(c1ocss);
c1id = log(c1idss);
c1rpipd = log(c1rpipdss);
c1mi = log(c1miss);
c1v = log(c1vss);
c1y = log(c1yss);
c1rk = log(c1rkss);
c1l = log(c1lss);
c1o = log(c1oss);
c1rrs = c1rrsss;
c1m = log(c1mss);
c1tbal = c1tbalss;
c1gtbal = c1gtbalss;
c1g = log(c1gss);
c1shockgy = c1shockgyss;
c1op = log(c1opss);
c1os = log(c1osss);
c1ow = log(c1owss);
c1rpopd = log(c1rpopdss);
c1oi = log(c1oiss);
c1zc = c1zcss;
c1zclag = c1zclagss;
c1zi = c1ziss;
c1yo = c1yoss;
c1lagyo = c1lagyoss;
c1dyo = c1dyoss;
c1muoc = c1muocss;
c1lagmuoc = c1lagmuocss;
c1muc = c1mucss;
c1omegacm = c1omegacmss;
c1lagomegacm = c1lagomegacmss;
c1omegaim = c1omegaimss;
c2lambdaq = log(c2lambdaqss);
c2q = log(c2qss);
c2i = log(c2iss);
c2k = log(c2kss);
c2c = log(c2css);
c2cne = log(c2cness);
c2cd = log(c2cdss);
c2mc = log(c2mcss);
c2oc = log(c2ocss);
c2id = log(c2idss);
c2rpipd = log(c2rpipdss);
c2mi = log(c2miss);
c2v = log(c2vss);
c2y = log(c2yss);
c2rk = log(c2rkss);
c2l = log(c2lss);
c2o = log(c2oss);
c2rrs = c2rrsss;
c2m = log(c2mss);
c2tbal = c2tbalss;
c2gtbal = c2gtbalss;
c2g = log(c2gss);
c2shockgy = c2shockgyss;
c2op = log(c2opss);
c2os = log(c2osss);
c2ow = log(c2owss);
c2rpopd = log(c2rpopdss);
c2oi = log(c2oiss);
c2zc = c2zcss;
c2zclag = c2zclagss;
c2zi = c2ziss;
c2yo = c2yoss;
c2lagyo = c2lagyoss;
c2dyo = c2dyoss;
c2muoc = c2muocss;
c2lagmuoc = c2lagmuocss;
c2muc = c2mucss;
c2omegacm = c2omegacmss;
c2lagomegacm = c2lagomegacmss;
c2omegaim = c2omegaimss;
c1rer = log(c1rerss);
c2rpwopd = log(c2rpwopdss);
c1rpwopd = log(c1rpwopdss);
c1b = c1bss;
c1rpmcpd = log(c1rpmcpdss);
c2rpmcpd = log(c2rpmcpdss);
c1z = c1zss;
c2z = c2zss;
c1zw = c1zwss;
c1zwlag = c1zwlagss;
c1muo = c1muoss;
c2muo = c2muoss;
c1muow = c1muowss;
c1muowlag = c1muowlagss;
c1rpmipd = log(c1rpmipdss);
c1x = log(c1xss);
c2rpmipd = log(c2rpmipdss);
c2x = log(c2xss);
c2w = log(c2wss);
c1w = log(c1wss);
c2oy = log(c2oyss);
c1oy = log(c1oyss);
c2thetapvar = c2thetapvarss;
c1thetapvar = c1thetapvarss;
c2wdes = log(c2wdesss);
c1wdes = log(c1wdesss);
c2thetawvar = c2thetawvarss;
c1thetawvar = c1thetawvarss;


%HERE POSS

%c1welf_pot = log(c1welf_potss);
%c2welf_pot = log(c2welf_potss);

c1lambdaq_pot = log(c1lambdaq_potss);
c1q_pot = log(c1q_potss);
c1i_pot = log(c1i_potss);
c1k_pot = log(c1k_potss);
c1c_pot = log(c1c_potss);
c1cne_pot = log(c1cne_potss);
c1cd_pot = log(c1cd_potss);
c1mc_pot = log(c1mc_potss);
c1oc_pot = log(c1oc_potss);
c1id_pot = log(c1id_potss);
c1rpipd_pot = log(c1rpipd_potss);
c1mi_pot = log(c1mi_potss);
c1v_pot = log(c1v_potss);
c1y_pot = log(c1y_potss);
c1rk_pot = log(c1rk_potss);
c1l_pot = log(c1l_potss);
c1o_pot = log(c1o_potss);
c1rrs_pot = c1rrs_potss;
c1m_pot = log(c1m_potss);
c1tbal_pot = c1tbal_potss;
c1g_pot = log(c1g_potss);
c1op_pot = log(c1op_potss);
c1os_pot = log(c1os_potss);
c1ow_pot = log(c1ow_potss);
c1rpopd_pot = log(c1rpopd_potss);
c1oi_pot = log(c1oi_potss);
c2lambdaq_pot = log(c2lambdaq_potss);
c2q_pot = log(c2q_potss);
c2i_pot = log(c2i_potss);
c2k_pot = log(c2k_potss);
c2c_pot = log(c2c_potss);
c2cne_pot = log(c2cne_potss);
c2cd_pot = log(c2cd_potss);
c2mc_pot = log(c2mc_potss);
c2oc_pot = log(c2oc_potss);
c2id_pot = log(c2id_potss);
c2rpipd_pot = log(c2rpipd_potss);
c2mi_pot = log(c2mi_potss);
c2v_pot = log(c2v_potss);
c2y_pot = log(c2y_potss);
c2rk_pot = log(c2rk_potss);
c2l_pot = log(c2l_potss);
c2o_pot = log(c2o_potss);
c2rrs_pot = c2rrs_potss;
c2m_pot = log(c2m_potss);
c2tbal_pot = c2tbal_potss;
c2g_pot = log(c2g_potss);
c2op_pot = log(c2op_potss);
c2os_pot = log(c2os_potss);
c2ow_pot = log(c2ow_potss);
c2rpopd_pot = log(c2rpopd_potss);
c2oi_pot = log(c2oi_potss);
c1rer_pot = log(c1rer_potss);
c2rpwopd_pot = log(c2rpwopd_potss);
c1rpwopd_pot = log(c1rpwopd_potss);
c1b_pot = c1b_potss;
c1rpmcpd_pot = log(c1rpmcpd_potss);
c2rpmcpd_pot = log(c2rpmcpd_potss);
c1rpmipd_pot = log(c1rpmipd_potss);
c1x_pot = log(c1x_potss);
c2rpmipd_pot = log(c2rpmipd_potss);
c2x_pot = log(c2x_potss);
c2w_pot = log(c2w_potss);
c1w_pot = log(c1w_potss);
c2oy_pot = log(c2oy_potss);
c1oy_pot = log(c1oy_potss);
c2rmcpd_pot = log(c2rmcpd_potss);
c1rmcpd_pot = log(c1rmcpd_potss);
c2wdes_pot = log(c2wdes_potss);
c1wdes_pot = log(c1wdes_potss);
c2rpcpd_pot = log(c2rpcpd_potss);
c1rpcpd_pot = log(c1rpcpd_potss);

c2rmcpd = log(c2rmcpdss);
c1rmcpd = log(c1rmcpdss);
c2rpcpd = log(c2rpcpdss);
c1rpcpd = log(c1rpcpdss);
c2dpd = c2dpdss;
c1dpd = c1dpdss;

c2dcore = log(c2pistar);
c1dcore = log(c1pistar);
c1dhead = log(c1pistar);
c1dpwo = log(c1grmuzoss)+log(c1pistar);
c2rpnepd = log(c2rmcpdss);
c1rpnepd = log(c1rmcpdss);

c1rs = c1rsss;
c2rs = c2rsss;
c1pitar = c1pitarss;
c2pitar = c2pitarss;

c1hw = log((1+c1thetaw)/c1thetaw*c1lss/(1-c1xiw*c1beta));
c1gw = log((1+c1tauw)/c1thetaw*c1lss/(1-c1xiw*c1beta));
c1wstar = log(c1wss);
c1omegabar = c1pistar*c1grmuzss;
c1omega = c1pistar*c1grmuzss;

c2hw = log((1+c2thetaw)/c2thetaw*c2lss/(1-c2xiw*c2beta));
c2gw = log((1+c2tauw)/c2thetaw*c2lss/(1-c2xiw*c2beta));
c2wstar = log(c2wss);
c2omegabar = c2pistar*c2grmuzss;
c2omega = c2pistar*c2grmuzss;

c1hp = log(((1+c1thetap)/c1thetap*(c1rmcpdss)*(c1yss)/(1-c1xip*c1beta)));
c1gp = log(((1+c1taup)/c1thetap*(c1yss)/(1-c1xip*c1beta)));
c1pid = c1pistar;
c1pstar = log(1);
c1pidbar = c1pistar;

c2hp = log(((1+c2thetap)/c2thetap*(c2rmcpdss)*(c2yss)/(1-c2xip*c2beta)));
c2gp = log(((1+c2taup)/c2thetap*(c2yss)/(1-c2xip*c2beta)));
c2pid = c2pistar;
c2pstar = log(1);
c2pidbar = c2pistar;

c1yd = log(c1yss);
c2yd = log(c2yss);
c1yd_pot = log(c1yss);
c2yd_pot = log(c2yss);
c1deltad = 0;
c2deltad = 0;
c1ygap = 1;


c1logdeltagdp = c1logdeltagdpss;
c2logdeltagdp = c2logdeltagdpss;
c1rngdpy = c1rngdpyss;
c2rngdpy = c2rngdpyss;
deltalog_gdp_us_obs  =  (c1mugdpss - 1);
deltalog_gdp_for_obs  =  (c2mugdpss - 1);

dpcexfe_log_us_obs  =  log(c1pistar); 

rer_log_us_obs  = log(c1rerss); 

dcomp_log_us_obs  = log(c1pistar*c1grmuzss); 
fedfunds_us_obs  = c1rsss;

fixi_share_us_obs = ((exp(c1rpipd) * exp(c1i)) / exp(c1yd)) / c1rngdpy;    
pce_share_us_obs =  (( (exp(c1rpcpd) * exp(c1c)) / exp(c1yd)) /c1rngdpy);

exp_share_us_obs = ( exp(c1x) / exp(c1yd) ) / c1rngdpy; 

imp_share_us_obs = ( exp(c1m) / exp(c1yd) ) / c1rngdpy; 

oilimp_share_us_obs = exp(c1rpopd)  * (  exp(c1o) / exp(c1y) - exp(c1yo) / exp(c1y)  ) * (1 / c1rngdpy);
oilprod_us_deltalog_obs = ( c1grmuoss  - 1 );
oilprod_for_deltalog_obs = ( c2grmuoss  - 1 );
delta_logoilprice_us_obs = ( c1grmuzoss * c1mugdpss  -  c1grmuzss ) / c1grmuzss; 

fixi_share_for_obs = ((exp(c2rpipd) * exp(c2i)) / exp(c2yd)) / c2rngdpy;    	
imp_share_for_obs = ( exp(c2m) / exp(c2yd) ) / c2rngdpy  ; 	
pce_share_for_obs = (( (exp(c2rpcpd) * exp(c2c)) / exp(c2yd)) /c2rngdpy);	
gov_share_for_obs  = ( exp(c2g)/ exp(c2yd) ) / c2rngdpy; 	
exp_share_for_obs = ( exp(c2x) / exp(c2yd) ) / c2rngdpy; 	
gov_share_us_obs = ( exp(c1g)/ exp(c1yd) ) / c1rngdpy; 	
hours_dlog_us_obs = 0;%log(c1lss); 




















































































