var 
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,
c1dyo,
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,
c2dyo,
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_us_obs, 
deltalog_gdp_for_obs, 
dpcexfe_log_us_obs,  
rer_log_us_obs, 
dcomp_log_us_obs,  
fedfunds_us_obs, 
fixi_share_us_obs, 
pce_share_us_obs, 
exp_share_us_obs, 
imp_share_us_obs, 
oilimp_share_us_obs,
oilprod_us_deltalog_obs,
oilprod_for_deltalog_obs, 
delta_logoilprice_us_obs,
//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_dlog_us_obs;
//muo_us_obs_quarterly; 

varexo  
c1shockgyerr//Home government spending 
c1zcerr//Home Technology
c1zierr//Home investment
c1yoerr//Home oil supply 
c1muocerr//Oil Demand, st. dev. of innovation
c1mucerr//For. Consumption Shock
c1omegacmerr//Home imports
c2shockgyerr//Foreign government spending 
c2zcerr//Foreign Tecnhology
c2zierr//Foreign investment
c2yoerr//Foreign oil supply 
c2muocerr//Foreign Oil Demand
c2mucerr//For. Consumption Shock
c2omegacmerr//Home imports
c1zwerr//World Technology shock
c1muowerr//World oil demand International shock
c2thetapvarerr//Foreign Price markup
c1thetapvarerr//Home Price markup
c2thetawvarerr//Foreign wage markup
c1thetawvarerr//Home wage markup
c1pitarerr//Home Monetary Policy
c2pitarerr;//Foreign Monetary Policy

parameters 
c1adjswitch,
c1ziswitch,
c2adjswitch,
c2ziswitch, 
c1chi, 
c1sigma,   
c1vkappa, 
c1grmuoss, 
c1grmuzss, 
c1grmuzoss, 
c1muoss,
c1muzss, 
c1muzoss, 
c1psii, 
c1beta, 
c1delta, 
//c1telast,  
//c1oelast, 
//c2telast,  
//c2oelast,
//c2kelast, 
c1rhoc, 
c1rhoo,
//c1phimc, 
//c1phioc,   
//c1kelast, 
c1rhov, 
  c1omegal, 
  c1ratiooyoc,  
  c1shareiy, 
  c1sharegy,   
c1sharemy,
c1shareowy_nominal,  
 c1alphaop, 
 c1deltao, 
 c1less, 

 c1phibparm,
c1phib, 
c2phibparm,  
c2phib, 
c1gamrs,  
c1gamdpc, 
c1gamgdpgap,                
c1gamrs2,  
c1gamdpc2, 
c1gamdpwo, 
c1gamomega,  
c1pistar,  
c1tauw,  
c1taup,  
c1rsss,     
c1relc2,  

c1omegavy, 
c1omegaoc, 
c1omegamc, 
c1omegami, 
c1omegaoy, 

//additional parameters in sticky price model 
c1iotap, 
c1iotaw, 
c1xip, 
c1xiw,
c1thetap, 
c1thetaw,  
c1gamdw, 

//shocks 

c1rhopitar,  
c1scalepitarerr, 

c1rhogy, 
c1scaleshockgyerr, 

c1rhozc1,   
c1scalezcerr, 
c1rhozc2,  

c1rhozw1, 
c1scalezwerr, 
c1rhozw2, 

c1rhomuow1,     
c1rhomuow2,  
c1scalemuowerr,  
 
c1rhothetapvar, 
c1scalethetapvarerr,  

c1rhothetawvar, 
c1scalethetawvarerr,  

c1rhozi,  
c1scalezierr,  

c1rhoyo1,          
c1rhoyo2, 
c1scaleyoerr,  

c1rhomuoc1,  
c1rhomuoc2,  
c1scalemuocerr,  
  
c1rhomuc, 
c1scalemucerr, 

c1rhoomegacm1, 
c1rhoomegacm2, 
c1scaleomegacmerr,  

c2sigma, 
c2vkappa,  
c2grmuzss,  
c2psii, 
c2beta,  
c2delta,   
c2rhoc,   
c2rhoo,
c2phimc,  
c2phioc,  
c2grmuoss, 
c2rhov, 
c2omegal, 
c2shareiy,  
c2sharegy,   
c2sharemy,   
c2shareowy_nominal,     		 
c2shareyoy,  
c2pwoss, 
c2rhogy,  
c2shareoy, 
c2alphaop, 
c2deltao, 
c2grmuzoss,  
c2rhozc1,  
c2rhozc2,  
c2scalezcerr,  
c2rhozi,  
c2scalezierr, 
c2rhoyo1,  
c2rhoyo2,  

c2scaleyoerr,  
c2rhomuoc1,   
c2rhomuoc2,  
c2scalemuocerr,  
c2rhomuc, 
c2scalemucerr,  
c2rhoomegacm1,  
c2rhoomegacm2,  
c2scaleomegacmerr,  
c2phioy,  
c2rhothetapvar, 
c2scalethetapvarerr, 
c2labshare,   
c2chi,  
c2rhothetawvar,  
c2scalethetawvarerr, 
c2thetap,     
c2thetaw,  

c2xip,
c2iotap,      
c2iotaw,   
c2xiw,  
c2gamrs,  
c2gamdpc,  
c2gamdw, 
c2gamrer,  //Weight on Exchange Rate in Foreign Rule 
c2gamgdpgap,  
c2rhopitar, 
c2scalepitarerr, 

c2omegaoc, 
c2omegacc, 
c2omegac, 
c2omegamc, 
c2omegai, 
c2omegami, 
c2rhoi, 
c2omegavy,
c2omegaoy,
c2pistar,  
c2tauw, 
c2taup, 
c2less, 
c2rsss, 
c2muzss, 
c2muoss, 

c1rhoi, 
c1shareky,  
c1shareoop, 
c1shareopos, 
c1shareowo, 
c1pwoss,  
c1shareowy,  
c1shareyoy, 
c1shareoy, 
c1shareoyy,  
c1sharevy, 

c1sharecy,  
			
c1shareopow,  
c1shareoiow, 

c1shareocc, 
c1sharecnc, 
c1sharemcm, 
c1sharemim, 
c1sharemccn, 

c1sharemii,  

c1ratiomimc,  
c1rkstar,  
c2rkstar,   
c1labshare,   
c1chi0,    
c1omegacc,  
c1omegac,  
c1omegai,    
c2chi0,   
c1omegak,  
c2ratiooyoc,   
c2shareoyy, 
c2sharevy,  
c2omegak,    
c1sharely,    
c2sharely,   
c1yss,  
c2yss,  
c2shareowy,  

c1sharexy,     
c1mugdpss,  

c2sharecy, 
c2shareocc,  
c2sharecnc, 
c2sharemcm,  
c2sharemccn,  
c2sharemim,  
c2sharemii, 
c2shareky,  
c2sharexy,  
c2muzoss, 
c2ratiomimc, 
c2scaleshockgyerr,  


c2mugdpss, 
c2shareoop, 
c2shareopos, 
c2shareowo, 
c2shareopow,  
c2shareoiow, 
c2shareoprod, 
c2shareocon, 

%steady state ratio between nominal GDP and nominal gross output
c1sharengdpny;

c1adjswitch = 1;
c1ziswitch = 0;
c2adjswitch = 1;
c2ziswitch = 1;

c1chi = 59.540202481992;//'c1chi',0.001,1000,'Determines Lab. Supply El. (1/param/2)'};//determines labor supply elasticity 
c1sigma  = 1;//intemporal consumption elasticity
c1vkappa = 0.65119280966455;//'c1vkappa', 0.0, 0.98,'Habits in Consumption';...

c1grmuoss = 1.0026;// growth of oil supply steady state calibrated parameter...steady state calibrated parameter
c1grmuzss = 1.0058;//'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...steady state calibrated parameter 

//c1grmuzoss =  c1grmuzss/c1grmuoss; //1.005763995437/1.0026; // price of oil growth...steady state calibrated parameter 
//c1muoss = c1grmuoss;//1.0026; // mean of oil growth demand 
//c1muzss = c1grmuzss;//1.005763995437;//Growth Rate of Technology (gross)';...
//c1muzoss = c1grmuzss/c1grmuoss; //1.005763995437/1.0026;   

c1psii = 3.5153813918585;//'c1psii',0,50,'Investment Adjustment Cost';...
//c1beta = 0.99;//'c1beta',0.95,1.01,'Discount Factor';...
c1delta = 0.025;//'depreciation rate of capital' Bodenstein (2012) 
//c1telast = 1.757; //elasticity of substitution between domestic goods and imports  
//c1oelast = 0.4225; //elasticity of substitution between oil and domestic consumption 
c1phimc = 0;//'c1phimc', 0,100, 'Nonoil Trade Adjustment Costs';... 
c1phioc = 0;//'Adjustment Costs For Oil Demand';...    
//c1kelast = 0.5;//K-L sub. elasticity

c1rhoc = 1.32100396; //1.32100396elasticity of substitution between domestic goods and imports 
c1rhoo = -1.7316017; //elasticity of substitution between oil and domestic consumption GAMMA BEFORE
c1rhov = -2; //elasticity of substitution between oil and domestic consumption GAMMA BEFORE


c1omegal = 1; //weight of labor in CES aggregator
c1ratiooyoc = 1.86;//ratio of oil inputs in production to inputs in consumption 	
c1shareiy  = 0.219;//investment share of gross output  
c1sharegy = 0.15; //government spending share of gross output  0.15 in Bodenstein paramfile_assembled.m
c1sharemy   = 0.12; //see parmfile_assembled.m
c1shareowy_nominal = 0.0406;//see parmfile_assembled.m
c1alphaop = 0.9999; //related with oil supply 0.999
c1deltao = 0.4; //related with oil supply 
c1less = 0.3333; // share of time spent working

c1phib=0.0001;
//c1phibparm = c1phib;// Curvature of bond intermed. cost 
c1gamrs = 0.65533860773213;//'c1gamrs',0,0.95,'Policy Rate Smoothing';
c1gamdpc =  0.19071900990448;//'c1gamdpc',.01,10,'Weight on Inflation in Monetary Policy Rule';...
c1gamgdpgap =3.272048001401e-007;//'c1gamgdpgap',0,5,'Weight on Output Gap in Monetary Policy Rule';...               
//c1gamrs2 = c1gamrs; 0.65533860773213;// monetary policy 
//c1gamdpc2 = c1gamdpc; 0.19071900990448;// monetary policy
c1gamdpwo = 0;// monetary policy US
c1gamomega = 0;//monetary policy US
c1pistar = 1.0113956536186;//steady State Inflation  is the average mean of dpcexfe_Jp_obs  ... 
//c1tauw = c1thetaw; 0.000;//Lagged wage indexation 
//c1taup = c1thetap; 0.000 ;//Lagged price indexation 
//c1rsss = 0.01;//steady state nominal interest rate is the average mean of fedfunds_jp_obs...    
c1relc2 = 1/2;//relative size of home country  

//c1omegavy = 0.9707;//weight of value added in production  
//c1omegaoc = 0.021;// Bodenstein Guerrieri & Kilian (2012)
//c1omegamc = 0.068;// Bodenstein Guerrieri & Kilian (2012)
//c1omegami = 0.40;// Bodenstein Guerrieri & Kilian (2012)
//c1omegaoy = 0.026;// Bodenstein Guerrieri & Kilian (2012)

//additional parameters in sticky price model 
c1iotap = 4.5252964209175e-007;//lagged price  indexation
c1iotaw = 3.2035571406281e-007;//lagged wage indexation
c1xip =  0.81397044833069;//Calvo Price Parameter
c1xiw = 0.88999732204371;//Calvo wage Parameter 
c1thetap = 0.10;
c1thetaw  = 0.10;
c1gamdw  = 0; 


//shocks 

c1rhopitar  = 0.40261163739417;// U.S. Monetary Policy, AR(1) coef.';...   
c1scalepitarerr = 0.021694152070317;//standard deviation of U.S. Monetary Policy

c1rhogy = 0.99899999803367; //'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.';// 1.020  // 0.99989999803367
c1scaleshockgyerr = 0.024627248911243; // U.S. Gov. Exp. st. dev. of innovation';....

c1rhozc1  =  0.2162985427838; // Technology, growth AR coef.';...  
c1scalezcerr = 0.0065559859524876;// U.S. Technology, st. dev. of innovation';...0.00655
c1rhozc2  = 0.00010000024577987; //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 = 0.001;// 'World Oil Demand, growth AR coef.' ;...       
c1rhomuow2 =  0.001;// 'World Oil Demand, level error corr. coef.' ;...  
c1scalemuowerr = 0; //'World Oil Demand, st. dev. of innovation';... 
 
c1rhothetapvar =  0.74013690353831; //U.S. Price Markup, AR(1) coef.';...  
c1scalethetapvarerr = 0.47737277434637; //U.S. Price Markup, st. dev. of innovation';...

c1rhothetawvar = 0.97684135541579; // U.S. Wage Markup, AR(1) coef.';...
c1scalethetawvarerr = 3.6987834172965; //U.S. Wage Markup, st. dev. of innovation';...

c1rhozi = 0.90592267055841;//Investment Technology, AR coef.';...
c1scalezierr = 0.026852566158888;//U.S. Inv. Tech. st. dev. of innovation';...  0.0265 

c1rhoyo1 =  0.12358342705819;//U.S. Oil Supply, growth AR coef.';...        
c1rhoyo2 = 0.00010002809431871;//U.S. Oil Supply, level error corr. coef.';...    
c1scaleyoerr = 0.025349666563759;// U.S. Oil Supply, st. dev. of innovation';...   

c1rhomuoc1 = 0.00010294816003466;//Oil Demand, growth AR coef.';...    
c1rhomuoc2 =  0.014468002404739;//Oil Demand, level error corr. coef.';...   
c1scalemuocerr = 0.047022988598085;// U.S. Oil Demand, st. dev. of innovation';...  
  
c1rhomuc =  0.91884316757498; //Consumption Shock, AR(1) coef.';... 
c1scalemucerr = 0.64843349359594;// U.S. Consumption Shock, st. dev. of innovation';... 

c1rhoomegacm1 = 0.00010012294124003;// Import, growth AR coef.';...
c1rhoomegacm2 = 0.0019042540938258; //Import, level error corr. coef.';...
c1scaleomegacmerr =  0.026284602245045; //U.S. Import, st. dev. of innovation';...

/*
//Foreign country

c2sigma = 1;
c2vkappa  = 0.65; 

c2telast = 1.7570196944064; //elasticity of substitution between domestic goods and imports  
c2oelast = 0.42249644216872; //elasticity of substitution between oil and domestic consumption   
c2kelast = 0.5;//K-L sub. elasticity

c2psii  = 3.515; 
//c2beta  = 0.99; 
c2delta  = 0.025; 
//c2rhoc   = c1rhoc; 
//c2rhoo   = c1rhoo;
c2phimc  = 0; 
c2phioc  = 0;

c2grmuzss = 1.0058; //c1grmuzss; 1.005763995437
c2grmuoss = 1.0026;//c1grmuoss;

//c2grmuzoss = c1grmuzss/c1grmuoss; c2grmuzoss is the real oil prices growth
//c2rhov = 2; 
c2omegal = 1; 
c2shareiy  = 0.243; // c2shareiy = c1shareiy; 
c2sharegy  = 0.171; //c2sharegy = c1sharegy;
        //c2sharemy  = 0.12;
c2shareowy_nominal = 0.088;           		 
//c2shareyoy = 0.015; 
//c2pwoss =  c1pwoss; 

c2alphaop = 0.9999; 
c2deltao  = 0.4; //c1deltao; 0.4;

c2phioy  = 0;

//c2labshare  =  c2less/(1-c2less); 0.4999; 
c2chi  =  59.540202481992; 

//c2thetap  = c1thetaw;        
//c2thetaw = c1thetaw; 

//c2xip  = 0.81;//c1xip;
c2iotap  = 0.00000032;// c1iotap;
c2iotaw  =  0.00000032;//c1iotaw;
//c2xiw =  0.89;//c1xiw;
//c2gamrs  = c1gamrs;  0.001;
//c2gamdpc  = c1gamdpc; 0.001;   
c2gamdw  = 0;//1000; 
c2gamrer = 0; 
//c2gamgdpgap = c1gamgdpgap;0.001; 

//c2omegaoc = 0.041;
//c2omegacc = 0.959;
//c2omegac =  0.961;
//c2omegamc = 0.039; 
//c2omegai =  0.75;
//c2omegami = 0.75; 
       //c2rhoi = c2rhoc;  1.34
//c2omegavy = 0.9707; 
//c2omegaoy = 0.057; 
    c2pistar = 1.0121735; //c1pistar; 1
//c2tauw =  c2thetaw; 
//c2taup = c2thetap;
c2less =  0.333;
//c2rsss = 0.0098;

c1gamgdp = 0;
c2gamrs = 0.65533860773213;
c2gamdpc = 0.19071900990448;
c2gamgdpgap = 3.272048001401e-007;

//c2shareoy =  0.045; 


//Foreign shocks

 c2rhogy  = .99899999803367; 
 c2scaleshockgyerr = 0.024627248911243; // U.S. Gov. Exp. st. dev. of innovation';....  

 c2rhozc1  =   0.2162985427838;
 c2rhozc2  = 0.00010000024577987; 
 c2scalezcerr  = 0.01077006446931; 

 c2rhozi =  0.90592267055841; // c21rhozi;
 c2scalezierr =  0.026852566158888; //c1scalezierr;

c2rhoyo1  = 0.00010009546975665; 
c2rhoyo2  = 0.037818500221807;
c2scaleyoerr = 0.018072294073071;

  c2rhomuoc1  = 0.0001;
  c2rhomuoc2  = 0.0144;    
  c2scalemuocerr = 0.12691876301873; 

  c2rhomuc = 0.9; 
  c2scalemucerr = 0.71744864960161; 

  c2rhoomegacm1  = 0.00010012294124003; 
  c2rhoomegacm2 = 0.0019042540938258;//
  c2scaleomegacmerr = 0.041208515408324; 

c2rhopitar = 0.40261163739417; 
c2scalepitarerr = 0.021694152070317;

c2rhothetapvar  = 0.74013690353831; 
c2scalethetapvarerr = 0.47737277434637;

c2rhothetawvar =  0.97684135541579;
c2scalethetawvarerr = 3.6987834172965; 
/++++++*/







//Foreign country

c2sigma = 1;
c2vkappa  = 0.65; 

//c2telast = 1.757; //elasticity of substitution between domestic goods and imports  
//c2oelast = 0.4225; //elasticity of substitution between oil and domestic consumption   
//c2kelast = 0.5;//K-L sub. elasticity

c2rhoc = 1.32100396; //1.32100396elasticity of substitution between domestic goods and imports 
c2rhoo = -1.7316017; //elasticity of substitution between oil and domestic consumption GAMMA BEFORE
c2rhov = -2; //elasticity of substitution between oil and domestic consumption GAMMA BEFORE


c2psii  = 3.515; 
//c2beta  = 0.99; 
c2delta  = 0.025; 
//c2rhoc   = c1rhoc; 
//c2rhoo   = c1rhoo;
c2phimc  = 0; 
c2phioc  = 0;
c2phib=0.0001;//0
//c2phibparm  = c2phib;// Curvature of bond intermed. cost

//c2grmuzoss = 1.003192;//, , , ,normal_pdf, 1.003192, .0015;
c2grmuzss = 1.0058;//c1grmuzss; 1.005763995437
c2grmuoss = 1.0026;//c1grmuoss;

//c2grmuzoss = c1grmuzss/c1grmuoss; c2grmuzoss is the real oil prices growth
//c2rhov = 2; 
c2omegal = 1; 
c2shareiy  = 0.243; // c2shareiy = c1shareiy; 
c2sharegy  = 0.171; //c2sharegy = c1sharegy;
        //c2sharemy  = 0.12;
c2shareowy_nominal = 0.088;           		 
//c2shareyoy = 0.015; 
//c2pwoss =  c1pwoss; 

c2alphaop = 0.9999; 
c2deltao  = 0.4; //c1deltao; 0.4;

c2phioy  = 0;

//c2labshare  =  c2less/(1-c2less); 0.4999; 
c2chi  =  59.540202481992; 

c2thetap  = 0.10 ;//c1thetaw;        
c2thetaw = 0.10 ;//c1thetaw; 

c2xip  = 0.81;// c1xip;
c2iotap  = 4.5252964209175e-007;//c1iotap; 
c2iotaw  = 3.2035571406281e-007;//c1iotaw;
c2xiw =  0.89;// c1xiw;
//c2gamrs  = c1gamrs;  0.001;
//c2gamdpc  = c1gamdpc; 0.001;   
c2gamdw  = 0;//1000; 
c2gamrer = 0; 
//c2gamgdpgap = c1gamgdpgap;0.001; 

//c2omegaoc = 0.041;
//c2omegacc = 0.959;
//c2omegac =  0.961;
//c2omegamc = 0.039; 
//c2omegai =  0.75;
//c2omegami = 0.75; 
       //c2rhoi = c2rhoc;  1.34
//c2omegavy = 0.9707; 
//c2omegaoy = 0.057; 
       c2pistar = 1.0121735; //c1pistar;
//c2tauw =  c2thetaw; 
//c2taup = c2thetap;
c2less =  0.33;
c2rsss = 0.01;

c1gamgdp = 0;
c2gamrs = 0.65533860773213;
c2gamdpc = 0.19071900990448;
c2gamgdpgap = 3.272048001401e-007;

//c2shareoy =  0.045;
 
//Foreign shocks
 c2rhogy  = 0.99899999803367;// 0.99998999903367; //0.99998999803367; 0.99899999993367  0.99899999993367
 c2scaleshockgyerr = 0.024627248911243; // U.S. Gov. Exp. st. dev. of innovation';....  

 c2rhozc1  =   0.2162;
 c2rhozc2  = 0.0001; 
 c2scalezcerr  = 0.01077006446931; 

 c2rhozi =  0.90592267055841; // c21rhozi;
 c2scalezierr =  0.026852566158888; //c1scalezierr;

c2rhoyo1  = 0.00010009546975665; 
c2rhoyo2  = 0.037818500221807;
c2scaleyoerr = 0.018072294073071;

  c2rhomuoc1  = 0.0001;
  c2rhomuoc2  = 0.0144;    
  c2scalemuocerr = 0.12691876301873; 

  c2rhomuc = 0.9; 
  c2scalemucerr = 0.71744864960161; 

  c2rhoomegacm1  = 0.00010012294124003; 
  c2rhoomegacm2 = 0.0019042540938258;//
  c2scaleomegacmerr = 0.041208515408324; 

c2rhopitar = 0.40261163739417; 
c2scalepitarerr = 0.021694152070317;

c2rhothetapvar  = 0.74013690353831; 
c2scalethetapvarerr = 0.47737277434637;

c2rhothetawvar =  0.97684135541579;
c2scalethetawvarerr = 3.6987834172965; 


//c2muoss = c1grmuoss;//1.0026;// mean of oil growth demand 
//c2muzss = c1grmuzss;//1.005763995437; 
//c2muzoss = c1grmuzss/ c1grmuoss; 

// 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 = 0.02;//(c1w)*(c2lambdaq)/((1-(c1l))^(-c1chi));  
//c1omegacc =  1 - c1omegaoc; 
//c1omegac =  1 - c1omegamc;
//c1omegai =   1 - c1omegami ;  
//c2chi0 = 0.02;//(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;

model;

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

//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;//40
//c1yo = (1+c1rhoyo1-c1rhoyo2)*c1yo(-1) - c1rhoyo1*c1lagyo(-1) + c1scaleyoerr*c1yoerr;
//exp(c1lagyo) = exp(c1yo(-1));
//c1dyo = c1yo - c1yo(-1);

//oil inventory equations (old version)
//(exp(c2o)) = (exp(c2op))^c2alphaop*(exp(c2os(-1))/ 1.0026 )^(1-c2alphaop);
//(exp(c2os)) = (1-c2deltao)/ 1.0026   * 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));

// 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));



//(old version)
//(exp(c1o)) = (exp(c1op))^c1alphaop*(exp(c1os(-1))/1.0026)^(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));


// 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));


//oilprod_jp_deltalog_obs  = c1dyo + ( c1grmuoss  - 1 );//c1yo(-1) - c1lagyo(-1) + ( c1grmuoss  - 1 );//matched to non-demeaned growth rate, useful to estimation purposes


// 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);

// 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);

// 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);//10

// 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))^(/(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);

// 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);//20

// 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);//30

// 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;//40

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

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

c1dyo = c1yo - 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;//50

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);

// 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));//60

// 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);

// 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));//70

// 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;//80

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));

c2dyo = c2yo - 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));
//(exp(c1rpwopd_pot)) = c1beta/c1grmuzss*c1grmuzoss*(exp(c1lambdaq_pot)/exp(c1lambdaq_pot(-1)))*(exp(c1rpopd_pot)*(1-c1alphaop)*c1grmuoss*exp(c1o)/(exp(c1os_pot))+ exp(c1rpwopd_pot)*(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));
//(exp(c2rpwopd_pot)) = c2beta/c2grmuzss*c2grmuzoss*(exp(c2lambdaq_pot)/exp(c2lambdaq_pot(-1)))*(exp(c2rpopd_pot)*(1-c2alphaop)*c2grmuoss*exp(c2o)/(exp(c2os_pot))+ exp(c2rpwopd_pot)*(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)) ));//CHANGE C1Y TO C1YD
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)) ));//CHANGE C1Y TO C1YD 

c1rngdpy =   (1  - exp(c1rpwopd)* exp(c1oy) / exp(c1yd) + exp(c1rpwopd) *  c1shareyoy*c1yss*exp(c1yo) /exp(c1yd));

c2rngdpy =   (1  - exp(c2rpwopd)* exp(c2oy) / exp(c2yd) + exp(c2rpwopd) *  c2shareyoy*c2yss*exp(c2yo) /exp(c2yd));


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

deltalog_gdp_us_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

dpcexfe_log_us_obs  =  c1dcore ; //matched to log level  d1core is the net inflation
rer_log_us_obs = c1rer - c1rer(-1); //matched to log level

//rer_log_us_obs = c1rer;
dcomp_log_us_obs  = log(c1omega) - log(c1omega(-1)) ; //  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
//dcomp_log_us_obs  = log((exp(c1w))/(exp(c1w(-1))));
 
fedfunds_us_obs = c1rs - c1rs(-1);//matched to the growth rate
 //fedfunds_us_obs = c1rs;

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

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

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

//imp_share_us_obs = c1m / c1y  * (1 / ( 1 - ( c1rpopd * c1oy / c1y ) + ( c1rpopd   * c1yo / c1y )) ) ;
//imp_share_us_obs = exp(c1rpmcpd) * (exp(c1m) / exp(c1yd) ) / c1rngdpy  ; 

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(c1rpcpd) * exp(c1x)) / exp(c1yd)) / c1rngdpy) ; 
imp_share_us_obs = (( (exp(c1rpmcpd) * exp(c1m)) / exp(c1yd)) / c1rngdpy) ;

oilimp_share_us_obs = exp(c2rpwopd)  * (  exp(c1o) / exp(c1yd) - exp(c1yo) / exp(c1y)  ) * (1 / c1rngdpy );//CHANGE C1Y TO C1YD

oilprod_us_deltalog_obs = c1yo(-1) - c1lagyo(-1) + ( c1grmuoss  - 1 );//c1dyo + ( c1grmuoss  - 1 ) //matched to non-demeaned growth rate, useful to estimation purposes
oilprod_for_deltalog_obs = c2yo(-1) - c2lagyo(-1) + ( c2grmuoss  - 1 );//c2dyo + ( c2grmuoss  - 1 ) //matched to non-demeaned growth rate, useful to estimation purposes

delta_logoilprice_us_obs =  c1rpwopd -  c1rpwopd(-1) +  ( c1grmuzoss * c1mugdpss  -  c1grmuzss ) / c1grmuzss ; //matched to non-demeaned growth rate, useful to estimation purposes

//fixi_share_for_obs = (( (exp(c2rpipd) * exp(c2i)) / exp(c2yd)) / c2rngdpy);    	
//imp_share_for_obs =  (( (exp(c2rpmcpd)* exp(c2m)) / exp(c2yd)) / c2rngdpy); 	
//pce_share_for_obs =  (( (exp(c2rpcpd) * exp(c2c)) / exp(c2yd)) / c2rngdpy) ;	
//gov_share_for_obs  = (( (exp(c2rpcpd) * exp(c2g)) / exp(c2yd)) / c2rngdpy) ; 	
//exp_share_for_obs =  (( (exp(c2rpcpd) * exp(c2x)) / exp(c2yd)) / c2rngdpy)  ; 	
//gov_share_us_obs =   (( (exp(c1rpcpd)* exp(c1g))/ exp(c1yd)) / c1rngdpy) ;	
	
hours_dlog_us_obs = c1l - c1l(-1); 

//muo_us_obs_quarterly = ( c1muo + c1muo(-1) + c1muo(-2) + c1muo(-3) ) /4; 


end;


shocks;
var c1shockgyerr; stderr 1;
var c1zcerr; stderr 1;
var c1zierr; stderr 1;
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; 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;

resid(1);
steady;
check;

estimated_params;

      //c1beta, 0.99, , ,normal_pdf, 0.99, 2;//'c1beta',0.95,1.01,'Discount Factor';...
c1delta, 0.025, , ,normal_pdf, 0.025, 0.2;//'c1beta',0.95,1.01,'Discount Factor';...  
       
//c1phimc, , , ,normal_pdf, 0, 2;//'c1phimc', 0,100, 'Nonoil Trade Adjustment Costs';... Stevens Phd
//c1phioc, , , ,gamma_pdf, 0, .15;//'c1phioc', 0, 100, 'Adjustment Costs For Oil Demand';... Stevens Phd  
     
c1grmuoss, , , ,normal_pdf, 1.0026, .15;// 1.0026 growth of oil supply steady state calibrated parameter...steady state calibrated parameter

c1grmuzss, , , ,normal_pdf, 1.0058, .15;// 1.005763995437...steady state calibrated parameter //THIS


     //c1grmuzss = c1grmuzoss * c1grmuoss;//'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...steady state calibrated parameter
     c1vkappa, , , , beta_pdf, 0.65119280966455, 0.15;//'c1vkappa', 0.0, 0.98,'Habits in Consumption'; //THIS 0.65119280966455
     c1psii, , , , gamma_pdf, 3.5153813918585, 1; //'c1psii',0,50,'Investment Adjustment Cost';... //THIS 

      //c1telast, , , ,normal_pdf, 1.7570196944064, .8; //elasticity of substitution between domestic goods and imports //THIS
      //c1oelast, , , ,normal_pdf, 0.42249644216872, .8; //elasticity of substitution between oil and domestic consumption GAMMA BEFORE //THIS
   
          c1rhoc, , , ,normal_pdf, 1.32100396, 5; //1.32100396elasticity of substitution between domestic goods and imports 
          c1rhoo, , , ,normal_pdf, -1.7316017, 5; //elasticity of substitution between oil and domestic consumption GAMMA BEFORE
          c1rhov, , , ,normal_pdf, -2, 5; //elasticity of substitution between oil and domestic consumption GAMMA BEFORE


//c1kelast, , , ,normal_pdf, .5, .45;//K-L elasticity of substitution; 
//c1omegal, , , ,normal_pdf, 1, .8;//weight of labor in CES aggregator

//c1less, , , ,normal_pdf, 1/3, .3;//share of time spent working
c1chi, , , ,normal_pdf, 59.540202481992, 15;//determines labor supply elasticity THIS


//c1iotap, , , ,normal_pdf, 0.000000452529, .025;//lagged price  indexation s.d .000000025
//c1iotaw, , , ,normal_pdf, 0.00000032055, .032;//lagged wage indexation s.d .000000032

c1iotap, , , ,normal_pdf, 0.000000452529, .075;//lagged price  indexation s.d .000000025
c1iotaw, , , ,normal_pdf, 0.00000032055, .082;//lagged wage indexation s.d .000000032

c1xip, , , , beta_pdf, 0.81397044833069, 0.15;//Calvo Price Parameter  Hirose(2014)
c1xiw, , , , beta_pdf, 0.88999732204371, 0.15;//Calvo wage Parameter Hirose(2014)
//c1thetap, , , , gamma_pdf, 0.10, 0.05;//THIS
//c1thetaw, , , , gamma_pdf, 0.10, 0.05;//THIS

    c1gamrs, , , , beta_pdf, 0.65533860773213, .15;//'c1gamrs',0,0.95,'Policy Rate Smoothing'; //THIS
    c1gamdpc, , , , normal_pdf, 0.19071900990448, .5;//'c1gamdpc',.01,10,'Weight on Inflation in Monetary Policy Rule';//THIS
    c1gamgdpgap, , , , normal_pdf, 0.0000003272, .1;// US'Weight on Output Gap in Monetary Policy Rule'; //THIS

//c1tauw, , , , beta_pdf, 0.001, .000015;//Lagged wage indexation THIS
//c1taup, , , , beta_pdf, 0.001, .000015;//Lagged price indexation THIS
//c1gamrs2, , , , beta_pdf, 0.65533860773213, .15;//monetary policy  
//c1gamdpc2, , , , normal_pdf, 0.19071900990448, .5;// monetary policy
      //c1gamdpwo, , , , gamma_pdf, 0, .01;//monetary policy 0.000000010292301 US
      //c1gamomega,0 , , , gamma_pdf, 0,  0.0000000002;//monetary policy 

//c1pistar, 1.0113956536186 , , ,normal_pdf, 1.0113956536186, .1; //steady State Inflation'; THIS
//c1rsss, 0.01, , ,normal_pdf, 0.01, .001;//steady state real interest rate  

//shocks 

      //    c1rhopitar, 0.40261163739417, , , normal_pdf, .5, .15;//U.S. Monetary Policy, AR(1) coef.';... Hirose(2014)
//c1scalepitarerr, 0.021694152070317 , , ,inv_gamma_pdf, 0.021 , 0.02;//standard deviation of U.S. Monetary Policy
 

 c1rhopitar, 0.40261163739417, , , normal_pdf, 0.40261163739417, .15;//U.S. Monetary Policy, AR(1) coef.';... Hirose(2014)
c1scalepitarerr, 0.021694152070317 , , ,inv_gamma_pdf, 0.021694152070317 , 0.2;//standard deviation of U.S. Monetary Policy
 

//c1rhozi, 0.90592267055841, , , normal_pdf, .9, 0.1;//Investment Technology, AR coef.';...   Bank of Japan (2010)
//c1scalezierr, 0.026852566158888, , , 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


c1rhozi, 0.90592267055841, , , normal_pdf, 0.90592267055841, 0.1;//Investment Technology, AR coef.';...   Bank of Japan (2010)
c1scalezierr, 0.026852566158888, , , inv_gamma_pdf, 0.0265, 0.2;//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, , , , normal_pdf, 0.99899999803367   , 0.33;// s.d 0.033'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.'; BETA BEFORE 0.99899999803367
//c1rhogy, , , , normal_pdf, 0.99899999803367   , 0.033;// s.d 0.033'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.'; BETA BEFORE 0.99899999803367
c1scaleshockgyerr, 0.024627248911243, , , 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, 0.2162985427838, , , normal_pdf, .2162, .15;//0.2162 US // Technology, growth AR coef.';
//c1rhozc1, 0.2162985427838, , , normal_pdf, .2162, .015;//0.2162 US // Technology, growth AR coef.';
c1rhozc2, 0.0001, , , normal_pdf, 0.00010000024577987, 0.0001;//Technology, level error corr. coef.';
c1scalezcerr, , , , inv_gamma_pdf,  0.0065559859524876, 0.00005;//U.S. Technology, st. dev. of innovation';
            // c1scalezcerr, , , , normal_pdf, 0.00655, 0.00005;//U.S. Technology, st. dev. of innovation';
  
c1rhozw1, , , , normal_pdf, .01, .05;//World Technology, growth AR coef.  Bank of Japan (2010)
c1rhozw2, , , , normal_pdf, .001, .03;//World Technology, level error corr. coef.'; Bank of Japan (2010)
c1scalezwerr, , , , inv_gamma_pdf, .001, 0.0005;//'World Technology, st. dev. of innovation'; US 0.001
         //c1scalezwerr, 0.001, , , normal_pdf, 0.001, 0.05;//'World Technology, st. dev. of innovation';

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

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


c1rhothetapvar, , , , beta_pdf, 0.74013690353831, .15;//U.S. Price Markup, AR(1) coef.';
c1scalethetapvarerr, 0.47737277434637, , , inv_gamma_pdf, 0.4773, 0.15;//U.S. Price Markup, st. dev. of innovation';
//c1scalethetapvarerr, 0.4773, , , normal_pdf, 0.4773, 0.05;//U.S. Price Markup, st. dev. of innovation';

c1rhothetawvar, 0.97684135541579, , , normal_pdf, 0.97684135541579, .15; // U.S. Wage Markup, AR(1) coef.';
c1scalethetawvarerr, , , , inv_gamma_pdf, 3.6987834172965, 0.15; //U.S. Wage Markup, st. dev. of innovation';
//c1scalethetawvarerr, , , , normal_pdf, 3.6987834172965, 1; //U.S. Wage Markup, st. dev. of innovation';








c1rhoyo1, 0.12358342705819, , , normal_pdf, 0.1243, .13;//U.S. Oil Supply, growth AR coef.';    
c1rhoyo2, 0.00010002809431871, , , normal_pdf, 0.0001, .0005;//U.S. Oil Supply, level error corr. coef.';  
c1scaleyoerr, 0.025349666563759, , , inv_gamma_pdf, 0.025, 0.001; // U.S. Oil Supply, st. dev. of innovation';
//c1scaleyoerr, 0.025349666563759, , , normal_pdf, 0.025, 0.001; // U.S. Oil Supply, st. dev. of innovation';

c1rhomuoc1, 0.00010294816003466, , , normal_pdf, 0.0001, .0005; //Oil Demand, growth AR coef.';
c1rhomuoc2, 0.014468002404739, , , normal_pdf, 0.0144, .09; //Oil Demand, level error corr. coef.'; 
c1scalemuocerr, 0.047022988598085, , , inv_gamma_pdf, 0.047,0.04 ; // U.S. Oil Demand, st. dev. of innovation';
//c1scalemuocerr, 0.047, , , normal_pdf, 0.047,0.05 ; // U.S. Oil Demand, st. dev. of innovation';

c1rhoomegacm1, 0.00010012294124003, , , normal_pdf, 0.00010012294124003, .009; // Import, growth AR coef.';
c1rhoomegacm2, 0.0019042540938258, , , normal_pdf, 0.0019, .04; //Import, level error corr. coef.';
c1scaleomegacmerr , 0.026284602245045, , , inv_gamma_pdf, 0.02684, 0.01;  //U.S. Import, st. dev. of innovation';
//c1scaleomegacmerr , 0.026284602245045, , , normal_pdf, 0.02684, 0.05;  //U.S. Import, st. dev. of innovation'; 

c1rhomuc, 0.91884316757498, , , beta_pdf,  0.91884316757498, .015;
c1scalemucerr, 0.64843349359594, , , inv_gamma_pdf, 0.64843349359594, 0.05;//




// foreign country

     //c1beta, 0.99, , ,normal_pdf, 0.99, 2; //'c1beta',0.95,1.01,'Discount Factor';...
c2delta, 0.025, , ,normal_pdf, 0.025, 0.02;           
//c1phimc, , , ,normal_pdf, 0, 2;//'c1phimc', 0,100, 'Nonoil Trade Adjustment Costs';... Stevens Phd
//c1phioc, , , ,gamma_pdf, 0, .15;//'c1phioc', 0, 100, 'Adjustment Costs For Oil Demand';... Stevens Phd  

c2grmuoss, , , ,normal_pdf, 1.0026, .0015;// 1.0026 growth of oil supply steady state calibrated parameter...steady state calibrated parameter
c2grmuzss, , , ,normal_pdf, 1.0058, .0015;// 1.005763995437...steady state calibrated parameter //THIS

     //c1grmuzss = c1grmuzoss * c1grmuoss;//'c1muzss', 1,1.1,'Growth Rate of Technology (gross)';...steady state calibrated parameter
c2vkappa, , , , beta_pdf, 0.65119280966455, 0.15;//'c1vkappa', 0.0, 0.98,'Habits in Consumption'; //THIS 
c2psii, , , , gamma_pdf, 3.5153813918585, 1; //'c1psii',0,50,'Investment Adjustment Cost';... //THIS 

//c2telast, , , ,normal_pdf, 1.7570196944064, .8; //elasticity of substitution between domestic goods and imports //THIS
//c2oelast, , , ,normal_pdf, 0.42249644216872, .8; //elasticity of substitution between oil and domestic consumption GAMMA BEFORE //THIS

          c2rhoc, , , ,normal_pdf, 1.32100396, 2; //1.32100396elasticity of substitution between domestic goods and imports 
          c2rhoo, , , ,normal_pdf, -1.7316017, 2; //elasticity of substitution between oil and domestic consumption GAMMA BEFORE
          c2rhov, , , ,normal_pdf, -2, 2; //elasticity of substitution between oil and domestic consumption GAMMA BEFORE

//c2kelast, , , ,normal_pdf, .5, .45;//K-L elasticity of substitution;
//c2omegal, , , ,normal_pdf, 1, .8;//weight of labor in CES aggregator
//c2less, , , ,normal_pdf, .333, .3;//share of time spent working
c2chi, , , ,normal_pdf, 59.540202481992, 15;//determines labor supply elasticity THIS

//c2iotap, , , ,normal_pdf, 0.000000452529, .000000025;//lagged price  indexation
//c2iotaw, , , ,normal_pdf, 0.00000032055, .000000032;//lagged wage indexation
c2xip, , , , beta_pdf, 0.81397044833069, 0.15;//Calvo Price Parameter  Hirose(2014)
c2xiw, , , , beta_pdf, 0.88999732204371, 0.15;//Calvo wage Parameter Hirose(2014)
//c2thetap, , , , gamma_pdf, 0.10, 0.05;//THIS
//c2thetaw, , , , gamma_pdf, 0.10, 0.05;//THIS

c2iotap, , , ,beta_pdf, 0.5, 0.15;//lagged price  indexation Hirose(2014)
c2iotaw, , , ,beta_pdf, 0.5, 0.15;//lagged price  indexation Hirose(2014)
//c2xip, , , , beta_pdf, .66, 0.1;//Calvo Price Parameter  Hirose(2014)
//c2xiw, , , , beta_pdf, .66, 0.1;//Calvo Price Parameter  Hirose(2014)

c2gamrs, , , , beta_pdf, 0.65533860773213, .15;//'c1gamrs',0,0.95,'Policy Rate Smoothing'; //THIS
c2gamdpc, , , , normal_pdf, 0.19071900990448, .5;//'c1gamdpc',.01,10,'Weight on Inflation in Monetary Policy Rule';//THIS
c2gamgdpgap, , , , normal_pdf, 0.0000003272, .1;// US'Weight on Output Gap in Monetary Policy Rule'; //THIS

//c1tauw, , , , beta_pdf, 0.001, .000015;//Lagged wage indexation THIS
//c1taup, , , , beta_pdf, 0.001, .000015;//Lagged price indexation THIS
//c1gamrs2, , , , beta_pdf, 0.65533860773213, .15;//monetary policy  
//c1gamdpc2, , , , normal_pdf, 0.19071900990448, .5;// monetary policy
      //c1gamdpwo, , , , gamma_pdf, 0, .01;//monetary policy 0.000000010292301 US
      //c1gamomega,0 , , , gamma_pdf, 0,  0.0000000002;//monetary policy 

//c2pistar, 1.0121735 , , ,normal_pdf, 1.0121735, .1; //steady State Inflation'; THIS
//c1rsss, 0.01, , ,normal_pdf, 0.01, .001;//steady state real interest rate  

// shocks foreign shocks 

c2rhopitar, , , , normal_pdf, .5, .15;//U.S. Monetary Policy, AR(1) coef.';... Hirose(2014)
c2scalepitarerr,0.021 , , ,inv_gamma_pdf, 0.021694152070317 , 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
c2rhozi, 0.90592267055841, , , normal_pdf, .9, 0.1;//Investment Technology, AR coef.';...   Bank of Japan (2010)
c2scalezierr, 0.026852566158888, , , inv_gamma_pdf, 0.0265, 0.02;//U.S. Inv. Tech. st. dev. of innovation';...Bank of Japan (2010) 
//c1scalezierr, 0.026852566158888, , ,normal_pdf, 0.0265, 0.02;//standard deviation of U.S. Monetary Policy

c2rhogy, , , , normal_pdf, 0.99899999803367, 0.033;//'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.'; BETA BEFORE
//c2rhogy, , , , inv_gamma_pdf, 0.3, 2;//'c1rhogy', arlowerbound, arupperbound, 'U.S. Government Expenditure Shock AR(1) coef.'; BETA BEFORE

c2scaleshockgyerr,  0.024627248911243, , , inv_gamma_pdf, 0.024627248911243, 0.02;//U.S. Gov. Exp. st. dev. of innovation';  Bank of Japan (2010)...
//c1scaleshockgyerr,  0.024627248911243, , , normal_pdf, 0.0246, 0.05; //U.S. Gov. Exp. st. dev. of innovation';  Bank of Japan (2010)...

c2rhozc1, 0.2162985427838, , , normal_pdf, .2162, .015;//0.2162 US // Technology, growth AR coef.';
c2rhozc2, 0.00010000024577987, , , normal_pdf, 0.0001, 0.0001;//Technology, level error corr. coef.';
c2scalezcerr, , , , inv_gamma_pdf, 0.01077006446931, 0.00005;//U.S. Technology, st. dev. of innovation';
            // c1scalezcerr, , , , normal_pdf, 0.00655, 0.00005;//U.S. Technology, st. dev. of innovation';

c2rhothetapvar, , , , beta_pdf, 0.74013690353831, .015;//U.S. Price Markup, AR(1) coef.';
c2scalethetapvarerr, 0.47737277434637, , , inv_gamma_pdf, 0.4773, 0.05;//U.S. Price Markup, st. dev. of innovation';
//c1scalethetapvarerr, 0.47737277434637, , , normal_pdf, 0.4773, 0.05;//U.S. Price Markup, st. dev. of innovation';

c2rhothetawvar, 0.97684135541579, , , normal_pdf, 0.97684135541579, .15; // U.S. Wage Markup, AR(1) coef.';
c2scalethetawvarerr, , , , inv_gamma_pdf, 3.6987834172965, 1; //U.S. Wage Markup, st. dev. of innovation';
//c1scalethetawvarerr, , , , normal_pdf, 3.6987834172965, 1; //U.S. Wage Markup, st. dev. of innovation';

c2rhoomegacm1, 0.00010012294124003, , , normal_pdf, 0.0001, .009; // Import, growth AR coef.';
c2rhoomegacm2, 0.0019042540938258, , , normal_pdf, 0.0019, .04; //Import, level error corr. coef.';
c2scaleomegacmerr , , , , inv_gamma_pdf, 0.041208515408324, 0.01;  //U.S. Import, st. dev. of innovation';
//c1scaleomegacmerr , 0.041208515408324, , , normal_pdf, 0.02684, 0.05;  //U.S. Import, st. dev. of innovation'; 


c2rhoyo1, 0.00010009546975665, , , normal_pdf, 0.0001, .13;//World Oil Supply, growth AR coef.';     
c2rhoyo2, , , , normal_pdf, 0.037818500221807, .0005;//World Oil Supply, level error corr. coef.';   
        c2scaleyoerr, , , , inv_gamma_pdf, 0.018072294073071, 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';


c2rhomuoc1, 0.00010294816003466, , , normal_pdf, 0.0001, .0005; //Oil Demand, growth AR coef.';
c2rhomuoc2, 0.014468002404739, , , normal_pdf, 0.0144, .09; //Oil Demand, level error corr. coef.'; 
c2scalemuocerr, , , , inv_gamma_pdf, 0.12691876301873, 0.04; // U.S. Oil Demand, st. dev. of innovation';
//c2scalemuocerr, 0.047, , , normal_pdf, 0.047, 0.05; // U.S. Oil Demand, st. dev. of innovation';

c2rhomuc, 0.91884316757498, , , beta_pdf,  0.91884316757498, .015;
c2scalemucerr, , , , inv_gamma_pdf,0.71744864960161, 0.05;  



end;
           
//estimated_params_init(use_calibration);
//end;

//check;

varobs
deltalog_gdp_us_obs deltalog_gdp_for_obs dpcexfe_log_us_obs rer_log_us_obs dcomp_log_us_obs fedfunds_us_obs fixi_share_us_obs pce_share_us_obs exp_share_us_obs imp_share_us_obs 
oilimp_share_us_obs oilprod_us_deltalog_obs oilprod_for_deltalog_obs delta_logoilprice_us_obs  	 hours_dlog_us_obs;
//fixi_share_for_obs   pce_share_for_obs 	
 	//exp_share_for_obs
//muo_us_obs_quarterly


//stoch_simul(periods=200,order=2,nocorr,noprint,irf=200) c1k, c1c, c1cne, c1cd, c1mc, c1oc, c1id, c1rpipd, c1mi, c1v, c1y, c1rk;
//estimation(optim=('MaxIter',200), datafile= mixedobservationusadat,  xls_sheet=Sheet1, xls_range=A2:AC176,  mode_compute=9, mh_replic=100000, mh_nblocks=2,mh_jscale=0.0000000009, bayesian_irf, nodisplay) c1k, c1c, c1cne, c1cd, c1mc, c1oc, c1id, c1rpipd, c1mi, c1v, c1y, c1rk; 
estimation(optim=('MaxIter',200), datafile= mixedobservationusadat,  xls_sheet=Sheet1, xls_range=A2:AC176,  mode_compute=9, mh_replic=2100, mh_nblocks=2 ,mh_jscale=0.0000000005, bayesian_irf, irf=80, mode_check,mode_check_number_of_points = 30, nodisplay )c1i, c1omega, c1mc, c1o, c2i, c2omega, c2o, c1y, c1ygap, c2y, c1logdeltagdp, c1dpd, c1dpwo, c2dpd, c2logdeltagdp, c1rer, c1rs ;

//, mode_check,mode_check_number_of_points = 30,nodisplay
//0.0000000075

/*
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1delta');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1grmuoss');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1grmuzss');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1vkappa');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1psii');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1telast');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1kelast');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1omegal');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1less');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1chi');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1iotap');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1iotaw');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1xip');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1xiw'); 
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1gamrs'); 
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1gamdpc'); 
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1gamgdpgap');           
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1pistar');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhopitar');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhozi');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhogy'); 
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhozc1');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhozc2');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhozw1');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhozw2');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhomuow1');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhomuow2');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhothetapvar');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhothetawvar');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhoyo1');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhoyo2');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhomuoc1');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhomuoc2');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhomuc');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhoomegacm1');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1rhoomegacm2');

trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2delta');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2grmuoss');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2grmuzss');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2vkappa');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2psii');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2telast');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2oelast');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2kelast');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2omegal');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2less');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2chi');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2iotap');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2iotaw');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2xip');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2xiw'); 
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2gamrs'); 
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2gamdpc'); 
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2gamgdpgap');           
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2pistar');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhopitar');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhozi');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhogy'); 
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhozc1');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhozc2');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhothetapvar');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhothetawvar');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhoyo1');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhoyo2');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhomuoc1');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhomuoc2');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhomuc');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhoomegacm1');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2rhoomegacm2');


trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scalepitarerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scalezierr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scaleshockgyerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scaleshockgyerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scalezcerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scalezwerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scalemuowerr');    
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scalethetapvarerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scalethetawvarerr');         
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scaleyoerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scalemuocerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scalemucerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c1scaleomegacmerr');            


trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scalepitarerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scalezierr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scaleshockgyerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scaleshockgyerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scalezcerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scalezwerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scalemuowerr');    
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scalethetapvarerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scalethetawvarerr');         
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scaleyoerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scalemuocerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scalemucerr');
trace_plot(options_,M_,estim_params_,'DeepParameter',1,'c2scaleomegacmerr'); 
*/

//estimation(optim=('MaxIter',200),datafile= mixedobservationusadat,  xls_sheet=Sheet1, xls_range=A1:N179,mode_compute=0,first_obs=1, presample=4,lik_init=2,prefilter=0,mh_replic=0,mh_nblocks=2,mh_jscale=0.20,mh_drop=0.2, nograph, nodiagnostic, tex);
options_.groups{1}={'c1shockgyerr';'c2shockgyerr';'c1zierr';'c2zierr'};
options_.groups{2}={'c1omegacmerr';'c2omegacmerr';'c2thetawvarerr';'c1thetawvarerr';'c1mucerr';'c2mucerr'};
options_.groups{3}={'c1pitarerr';'c2pitarerr';'c1thetapvarerr'; 'c1thetapvarerr'};
options_.groups{4}={'c2yoerr'};
options_.groups{5}={'c1yoerr'};
options_.groups{6}={'c2zcerr';'c1zwerr'};
options_.groups{7}={'c1zcerr'};
options_.groups{8}={'c2muocerr';'c1muowerr'};
options_.groups{9}={'c1muocerr'};


options_.labels = char( 'Supply', 'Demand', 'Monetary', 'World Oil Supply', 'Home Oil Supply', 'World Technology', 'Home Technology', 'World Oil efficiency', 'Home Oil efficiency');

shock_decomposition(parameter_set=posterior_mode) c1omega, c2omega, c1rer, c1o, c1i, c1rs, c2o, c1y, c1ygap, c2y, c1logdeltagdp, c1dpwo, c1dpd, c1mc, c2logdeltagdp, c2dpd, c2i ;

//identification(parameter_set=posterior_mode, ar=10);
//dynare_sensitivity(identification=1, morris=2);

write_latex_dynamic_model;
write_latex_parameter_table;
write_latex_original_model;
collect_LaTeX_Files(M_);