%===============================================================================
% Variables
%===============================================================================

% Exogenous
varexo n g;

% Endogenous
var Y K L C I r w;

% Predetermined
predetermined_variables K;

%===============================================================================
% Parameters
%===============================================================================

parameters h delta alpha beta gamma;

h     = 52*100;  % page 430
delta = 0.0556;  % page 433
alpha = 0.3590;  % page 434
beta  = 0.9752;  % page 440
gamma = 0.2846;  % page 440

%===============================================================================
% Detrended Model
%===============================================================================

model;
    Y = (K^alpha)*(L^(1-alpha));             % Production function
    w = (1-alpha)*Y/L;                       % Wage rate
    r = alpha*Y/K;                           % Interest rate
    C + I = Y;                               % Market clearing
    g*n*K(+1) = (1-delta)*K + I;             % Law of motion of capital
    w*(h - L) = ((1-gamma)/gamma)*C;         % Consumption-labor choice
    g*n*C(+1)/C = beta*(1 - delta + r(+1));  % Euler equation
end;

%===============================================================================
% Initial Values
%===============================================================================

initval;
    Y = 8000;
    K = 38000;
    L = 4000;
    C = 7000;
    I = 2000;
    r = 0.07;
    w = 1.5;
    g = 1;
    n = 1;
end;

%steady;
%check;

%===============================================================================
% End Values
%===============================================================================

%endval;
%    Y = 8000;
%    K = 38000;
%    L = 4000;
%    C = 7000;
%    I = 2000;
%    r = 0.07;
%    w = 1.5;
%    g = 1.1;
%    n = 1.1;
%end;

%steady;
%check;

%===============================================================================
% Steady State
%===============================================================================

steady_state_model;
    r   = -1 + 1/beta + delta;                    % Interest rate
    K_Y = alpha/r;                                % Capital-output ratio
    I_Y = (-1 + delta + g*n)*K_Y;                 % Investment-output ratio
    C_Y = 1 - I_Y;                                % Consumption-output ratio
    L   = (1 - alpha)*h/(1 - alpha + gamma*C_Y);  % Hours worked
    K_L = K_Y^(1/(1-alpha));                      % Capital-labour ratio
    K   = L*K_L;                                  % Capital
    Y   = (K^alpha)*(L^(1-alpha));                % Output
    w   = (1-alpha)*Y/L;                          % Wage rate
    I   = Y*I_Y;                                  % Investment
    C   = Y*C_Y;                                  % Consumption
end;

%steady;

%===============================================================================
% Simulation
%===============================================================================

%simul(100);