#define lags = [1:J]
var x, pi;

varexo i;
parameters beta, k, sigma;

beta = 0.97;
k = 0.2;
sigma = 1;

model(linear);
x = x(+1)-sigma*(i-pi(+1));
pi = beta*pi(+1) + k*x;
end;
steady;

initval;
x = 0;
pi = 0;
i = 0;
end;

endval;
x = 0;
pi = 0;
i = 1;
end;
steady;

shocks;
var i;
periods 0;
values 0;
end;