% PARAMETERS

betaa = 0.99;
sigmaa = 1;
etaa = 2;
payroll = 0.33;
mu = 0.75;
epsilon = 5;
deltag = 0.275;
rtar = 1/betaa - 1;
pitar = 0;

% VARIABLES

kappass = 1;
piss = 0;
pioss = 0;
rss = 1/betaa - 1;
mcss = (epsilon-1)/epsilon;
wss = mcss/(1+payroll);

x0 = [1 0.76];
f = @(x) auxiliary(x,deltag,payroll,etaa,sigmaa,wss);
[output,fval] = fsolve(f,x0);
yss = output(1);
css = output(2);
gss = deltag*yss;
vatss = ((deltag-payroll*wss)*yss)/css;
lss = yss;
xoness = (yss*mcss)/(1-mu/(1+rss));
xtwoss = (yss)/(1-mu/(1+rss));