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% Simple stochastic neoclassical model with fixed labor
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var iv y k c n g w r TAOOf TAOOr;

varexo epsa;

parameters BETTA DELTA KAI ALFA SETA RHOaf RHOar TAOOn TAOOy TAOOk TAOOc STD_EPSA;

BETTA    = 0.99;
DELTA    = 0.03;
KAI      = 1;
ALFA     = 0.33;
SETA     = 4;
RHOaf    = 0.95;
RHOar    = 0.95;
TAOOn    = 0.115;
TAOOy    = 0.1;
TAOOk    = 0.31;
TAOOc    = 0.475;
STD_EPSA = 0.01;


model;

0 = -exp(c)^(-1)  +  BETTA*((1+exp(r(+1))) * exp(c(+1))^(-1) * (ALFA*exp(k)^(ALFA-1)*exp(n)^(1-ALFA) + 1));
0 = -exp(k)  +  exp(iv)  +  (1-DELTA) * exp(k(-1));
0 = -exp(y)  +  exp(k(-1))^(ALFA)*exp(n(-1))^(1-ALFA);
0 = -exp(y)  +  exp(c)  +  exp(iv)  + exp(g);
0 = -SETA*exp(n)^(-KAI)  + exp(c)^(-1)*(exp(w)*(1-TAOOn) + (1-ALFA)*exp(k)^(ALFA)*exp(n)*(-ALFA) - (1-ALFA)*exp(k)^(ALFA)*exp(n)*(-ALFA)*exp(TAOOf))*0.62;
0 = -exp(w) + (1-ALFA)*exp(k)^(ALFA)*exp(n)^(-ALFA);
0 = -exp(r) + (ALFA)*exp(k)^(ALFA-1)*exp(n)^(1-ALFA);
0 = -exp(g) + exp(k)*exp(r)*TAOOk + exp(k)*exp(r)*TAOOy + exp(w)*exp(n)*TAOOn + exp(w)*exp(n)*TAOOy + exp(c)*TAOOc + exp(TAOOf)*exp(k)^(ALFA)*exp(n)^(1-ALFA) - exp(TAOOf)*exp(w)*exp(n) + 2*exp(TAOOr)*exp(iv) - exp(iv);
0 = -TAOOf + (1-RHOaf)*0.21 + RHOaf*TAOOf(-1) + epsa;
0 = -TAOOr + (1-RHOar)*0.1 + RHOar*TAOOr(-1) + epsa;

end;


initval;

y  = log(1.19);
iv = log(1);
k  = log(1.06);
c  = log(1.16);
n  = log(1.35);
g  = log(1.03);
w  = log(1.48);
r  = log(2.64);
TAOOf = log(1.23);
TAOOr = log(1.11);
end;


shocks;

var epsa = STD_EPSA^2;

end;


steady;
check;


stoch_simul( order=1, irf=40 );
%stoch_simul;

%stoch_simul( order=1, irf=40, noprint, nograph );