
% Function to compute the steady state: 

%function [Css Css_T Css_N Iss_T Iss_N Iss_C Lss_T Lss_N Lss_C Dss Kss_T Kss_N Kss_C CMss_T Yss_T Yss_N Yss_C TBss_T TBss_C TBss Rss Pss_C Pss_N SIGMAss THETAss] = f(parameters);

betaa = 0.98;
varphi = 0.5;  
sigma = 2;
omega_T = 1.455;
omega_N = 1.455;
omega_C = 1.455;
chi = 0.35;
delta = 0.025; 
alpha_T = 0.35;
alpha_N = 0.25;
alpha_C = 0.35;
gammaa_T = 0.05;
phi_T = 4.6;
phi_N = 9.3;
phi_C =10.3;
v_C = -0.014; 
v_D = 0.077;
rho_C = 0.88;
rho_T = 0.87;
rho_N = 0.84;
psi_D = 0.077;
psi_C = -0.014;

% 
Dss = 0.12;

%
Rss = 1/betaa;

%
muss_T = (1 - betaa*(1-delta))/betaa;
muss_N = muss_T;
muss_C = muss_T;

%
TBss = (Rss - 1)*Dss;

%
Pss_C = 0.69;


% Commdity sector: {Kss_C/Lss_C and Wss_C}
KL_C = (alpha_C*Pss_C/muss_C)^(1/(1-alpha_C));
Wss_C = (1-alpha_C)*Pss_C*(KL_C^alpha_C);

% Tradable sector: {Capital to labor ratio = Kss_T/Lss_T and Wss_T}
KL_T = ((alpha_T/muss_T)*(((gammaa_T*muss_T)/(Pss_C*alpha_T))^gammaa_T))^(1/(1 - alpha_T - gammaa_T));
Wss_T = (1 - gammaa_T - alpha_T)*((gammaa_T*muss_T/Pss_C*alpha_T)^gammaa_T)*KL_T^(alpha_T + gammaa_T); 


% Nontradable sector: {solve numerically for reer, Kss_N/Lss_N, Lss_N and Pss_N}
FVAL = @fsolve(@F, [2;2;2;2], optimset('MaxIter', 10000));

reer = FVAL(1);
KL_N = FVAL(2);
Lss_N = FVAL(3);
Pss_N = FVAL(4);


% Using labor supply conditions:
Lss_C = (Wss_C/reer)^(1/(omega_C - 1));
Lss_T = (Wss_T/reer)^(1/(omega_T - 1));
Wss_N = (Lss_N^(omega_N - 1))*reer;

% Capital stock in the steady state is found by
Kss_C = KL_C*Lss_C;
Kss_T = KL_T*Lss_T;
Kss_N = KL_N*Lss_N;

% Using the definition of commodity demand:
CMss_T = (gammaa_T/Pss_C)*(gammaa_T*muss_T/Pss_C*alpha_T)*(KL_T^(alpha_T + gammaa_T))*Lss_T;

% Production in the steady state:
Yss_T = (Kss_T^alpha_T)*(CMss_T^gammaa_T)*(Lss_T^(1 - gammaa_T - alpha_T));
Yss_C = (Kss_C^alpha_C)*(Lss_C^(1 - alpha_C));
Yss_N = (Kss_N^alpha_N)*(Lss_N^(1 - alpha_N));

% Trade balance:
TBss_C = Pss_C*(Yss_C - CMss_T);
TBss_T = TBss - TBss_C;

% Investment in the steady state
Iss_T = delta*Kss_T;
Iss_C = delta*Kss_C;
Iss_N = delta*Kss_N;

% Consumption of Tradable and nontradable goods:
Css_N = Yss_N;
Css_T = Css_N*((chi/(1 - chi))*Pss_N)^varphi;
Css = (chi*(Css_T^((varphi - 1)/varphi)) + (1-chi)*(Css_N^((varphi - 1)/varphi)))^(varphi/(varphi-1));

SIGMAss = Css_T + Pss_N*Css_N;
THETAss = Css - (Lss_T/omega_T)^omega_T - (Lss_N/omega_N)^omega_N - (Lss_C/omega_C)^omega_C;

Css
Css_T
Css_N
Iss_T
Iss_N
Iss_C
Lss_T
Lss_N
Lss_C
Dss
Kss_T
Kss_N
Kss_C
CMss_T
Yss_T
Yss_N
Yss_C
TBss_T
TBss_C
TBss
Rss
Pss_C
Pss_N
SIGMAss
THETAss


