%%FINANCIAL INCLUSION WITHOUT DEFAULT%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% var c_p //total consumption c_i //rural hhd consumption R_d //shadow price rural R_b pi //real balances rural //rural labor supply to firms n_i m_h //rural labor supply to BCA m_e d //rural deposits b //rural deposit interest rate w_f w_bd //wages paid by BCAs to rural labor w_bl q_h h D L p_l p_d y c z_e z_d z_l z_b eps_z eps_l t_p ; //Exogenous Shocks varexo e_z_e, e_z_d, e_z_l, e_z_b, e_eps_z, e_eps_l; //Model Parameters (including Steady State) parameters R_d_s R_b_s eta1 eta2 theta tau a_r a_i beta_p beta_i pi_s delta s_i z_e_bar z_d_bar z_l_bar z_b_bar eps_z_bar eps_l_bar rho_z_e rho_z_d rho_z_l rho_z rho_l rho_z_b ; //Value of Parameter pi_s = 1; beta_p = 0.999; beta_i = 0.982; theta = 1; tau = 0.5; eta1 = 0.75; %share of rural households (as per NSS Emp-Unemp 2011-12) eta2 = 1; %share of rural entrepreneurs in pop (as per NSS Emp-Unemp 2011-12) delta = 0.75; %share of banking correspondent agents (urban patients households)(as per NSS Emp-Unemp 2011-12) a_r = 0.4; a_i = 0.4; z_e_bar = 3; z_d_bar = 3; z_l_bar = 3; z_b_bar = 3; eps_z_bar = 3; eps_l_bar = 3; s_i = 0.8; %LTV ratio urban impatient hhd (80%) rho_z_e = 0.99; rho_z_d = 0.99; rho_z_l = 0.99; rho_z = 0.99; rho_l = 0.99; rho_z_b = 0.99; R_d_s = 1/beta_p; R_b_s =s_i*pi_s/(1-beta_i*(1-s_i)); model; %%Firms z_e = (1-rho_z_e)*z_e_bar+rho_z_e*(z_e(-1))+e_z_e; %Eqn 63 z_d = (1-rho_z_d)*z_d_bar+rho_z_d*(z_d(-1))+e_z_d; %Eqn 64 z_l = (1-rho_z_l)*z_l_bar+rho_z_l*(z_l(-1))+e_z_l; %Eqn 65 z_b = (1-rho_z_b)*z_b_bar+rho_z_b*(z_b(-1))+e_z_b; %66 (eps_z) = (1-rho_z)*eps_z_bar+rho_z*(eps_z(-1))+e_eps_z; %Eqn 67 (eps_l) = (1-rho_l)*eps_l_bar+rho_l*(eps_l(-1))+e_eps_l; %Eqn 68 m_h=0.33; w_f=z_e; D = z_d * m_h^eta1; m_e = 0.33 * (1+z_e/(eta2*z_l)); n_i=0.33-m_e; y=z_e*n_i; L = z_l*m_e^eta2; d = z_b* D^delta*L^(1-delta); b = d; p_d = beta_p*delta*(R_b_s - R_d_s)*D^(delta-1)*L^(1-delta); p_l = beta_p*(1-delta)*(R_b_s - R_d_s)*D^delta*L^(-delta); w_bd = eta1*z_d*m_h^(eta1-1)*p_d; w_bl = eta2*z_l*m_e^(eta2-1)*p_l; %%Patient Households (Equations 1 to 6) (1-a_r)*eps_z*(c_p(+1)-a_r*c_p)= beta_p*(1-a_r)*eps_z(+1)*R_d_s*(c_p-a_r*c_p(-1))*pi(+1)^(-1); beta_p*(1-a_r)*eps_z*m_h*w_bd= eps_l*(c_p-a_r*c_p(-1)); t_p = w_bd*m_h + R_d_s*d(-1)*pi^(-1)- d - c_p; q_h(+1) = R_b_s*b*s_i^(-1)*h^(-1)*pi(+1)^(-1); c_i = w_f*n_i + w_bl*m_e + b + q_h*(h-h(-1)) - R_b(-1)*b(-1)*pi^(-1); pi=pi_s; %%Aggregation c = c_p + c_i; y = c; h=1; %%AR(1) processes end; shocks; var e_z_e; stderr 1; var e_z_d; stderr 1; var e_z_l; stderr 1; var e_z_b; stderr 1; var e_eps_z; stderr 1; var e_eps_l; stderr 1; end; initval; z_e = z_e_bar; z_d = z_d_bar; z_l = z_l_bar; z_b = z_b_bar; eps_z = eps_z_bar; eps_l = eps_l_bar; pi = pi_s; m_h = 0.33; %beta_p = 0.999; %beta_i = 1; %Eqn 63 R_d = R_d_s; %Eqn 64 R_b = R_b_s; %Eqn 65 m_e = 0.33/(1+z_e_bar/(eta2*z_l_bar)); %Eqn 66 n_i = 0.33-m_e; D = z_d_bar*m_h^eta1; %Eqn 68 L = z_l_bar*m_e^eta2; %Eqn 69 p_d = beta_p*delta*(R_b-R_d)*D^(delta-1)*L^(1-delta); % (70) p_l = beta_p*(1-delta)*(R_b-R_d)*D^delta*L^(-delta); w_bd = eta1*z_d_bar*m_h^(eta1-1)*p_d; w_bl = eta2*z_l_bar*m_e^(eta2-1)*p_l; y = z_e_bar*n_i; w_f = z_e_bar; d = z_b_bar*D^delta*L^(1-delta); b = d; h = 1; %(71) q_h = R_b_s*b/(s_i*h*pi_s); c_i = w_f*n_i+w_bl*m_e+(1-R_b_s)*b; c_p = beta_p*m_h*w_bd*eps_z_bar/eps_l_bar; t_p = c_p+(1-R_d)*d-w_bd*m_h; c = y; end; steady; %check; %estimated_params_init; %end; stoch_ simul (hp_filter=1600, order=1, irf=40); %estimation(datafile=fin_inclusion2,mh_replic=10000,mh_nblocks=2,mh_drop=0.45); %options_.plot_priors=0; %estimation(datafile=fin_inclusion2,mh_replic=20000,mh_nblocks=4,mh_drop=0.45,mh_jscale=0.8,bayesian_irf,irf=20,mode_compute=7) d_r d_u pi c b_e b_u r_ud k_b;