% PARAMETERS
betaa = 0.99;
sigmaa = 1;
etaa = 2;
mun = 0.75;
mumx = 0.75;
muh = 0.75;
mufx = 0.75;
lambdat = 0.6;
lambdatx = 0.6;
omegaa = 0.5;
alphaa = 0.25;
alphaax = 0.25;
gammaa = 2;
deltag = 0.275;
deltagx = 0.275;
epsilon = 5;
epsilonx = 5;
payroll = 0.33;
payrollx = 0.33;

% INTERNATIONAL PRICES
sss = 1;
tss = 1;
rerss = 1;

% RELATIVE PRICES
pnss = 1;
ptss = 1;
pmxss = 1;
ptxss = 1;
phtss = 1;
pftxss = 1;
pyss = 1;
pgss = 1;
pyxss = 1;
pgxss = 1;

% PRICE DISPERSION INDICES
kappanss = 1;
kappahss = 1;
kappamxss = 1;
kappafxss = 1;

% INFLATION
pinss = 0;
pihss = 0;
pimxss = 0;
pifxss = 0;
piss = 0;
pixss = 0;
pigss = 0;
pigxss = 0;
pitss = 0;
pitxss = 0;

% OPTIMAL PRICING
pinoss = 0;
pihoss = 0;
pimoxss = 0;
pifoxss = 0;

% INTEREST RATE
rss = (1/betaa)-1;

% REAL MARGINAL COSTS
mcnss = (epsilon-1)/epsilon;
mchss = (epsilon-1)/epsilon;
mcmxss = (epsilonx-1)/epsilonx;
mcfxss = (epsilonx-1)/epsilonx;

% WAGES
wss = ((epsilon-1)/epsilon)*(1/(1+payroll));
wxss = ((epsilonx-1)/epsilonx)*(1/(1+payrollx));

% TOTAL HOUSEHOLD CONSUMPTION AND TOTAL OUTPUT FOR EACH COUNTRY 
x0 = [1 1 0.76 0.76];
f = @(x) myself(x,deltag,alphaa,lambdat,alphaax,lambdatx,deltagx,payroll,etaa,sigmaa,payrollx,wss,wxss);
[output,fval] = fsolve(f,x0);
yss = output(1);
yxss = output(2);
css = output(3);
cxss = output(4);

% CONSUMPTION OF EACH TYPE OF GOOD
cnss = (1-lambdat)*((pnss)^(-omegaa))*css;
ctss = lambdat*(ptss^(-omegaa))*css;
cmxss = (1-lambdatx)*((pmxss)^(-omegaa))*cxss;
ctxss = lambdatx*(ptxss^(-omegaa))*cxss;
chss = (1-alphaa)*(phtss^(-gammaa))*ctss;
cfss = alphaa*(((pftxss*sss)^(-gammaa)))*ctss;
chxss = alphaax*((phtss*(1/sss))^(-gammaa))*ctxss;
cfxss = (1-alphaax)*((pftxss)^(-gammaa))*ctxss;

% Government consumption
gss = deltag*(pyss/pgss)*yss;
gxss = deltagx*(pyxss/pgxss)*yxss;
gnss = (1-lambdat)*((pnss/pgss)^(-omegaa))*gss;
gmxss = (1-lambdatx)*((pmxss/pgxss)^(-omegaa))*gxss;
ghss = lambdat*(((phtss*ptss)/pgss)^(-omegaa))*gss;
gfxss = lambdatx*(((pftxss*ptxss)/pgxss)^(-omegaa))*gxss;

% Output in each sector
ynss = cnss+gnss;
ymxss = cmxss+ gmxss;
yhss = chss+chxss+ghss;
yfxss = cfxss+cfss+gfxss;

% Labor
lnss = kappanss*ynss;
lhss = kappahss*yhss;
lmxss = kappamxss*ymxss;
lfxss = kappafxss*yfxss;
lss = lnss+lhss;
lxss = lmxss+lfxss;

% VAT
vatss = (pgss*gss-payroll*wss*lss)/css;
vatxss = (pgxss*gxss-payrollx*wxss*lxss)/cxss;

% Auxiliary variables for pricing
xnoness = (ynss*mcnss)/(1-mun*betaa);
xntwoss = (ynss)/(1-mun*betaa);
xmonexss = (ymxss*mcmxss)/(1-mumx*betaa);
xmtwoxss = (ymxss)/(1-mumx*betaa);
xhoness = (yhss*mchss)/(1-muh*betaa);
xhtwoss = (yhss)/(1-muh*betaa);
xfonexss = (yfxss*mcfxss)/(1-mufx*betaa);
xftwoxss = (yfxss)/(1-mufx*betaa);