%compute the steady state of RBC Model function[ys,check]=erpt_steadystate(ys,exo) global M_ %% DO NOT CHANGE THIS PART. %% %% Here we load the values of the deep parameters in a loop. %% NumberOfParameters = M_.param_nbr; % Number of deep parameters. for ii = 1:NumberOfParameters % Loop... paramname = deblank(M_.param_names(ii,:)); % Get the name of parameter i. eval([ paramname ' = M_.params(' int2str(ii) ');']); % Get the value of parameter i. end % End of the loop. check = 0; %% %% THIS BLOCK IS MODEL SPECIFIC. %% %% Here the user has to define the steady state. %% %Uses Analytical Solution %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% beta = 0.9950; %(2) TIME-INVARIANT DISCOUNT FACTOR L_ss = 0.3000; %(3) STEADY STATE OF LABOUR HOURS varepsilon = 7.5000; %(4) ELASTICITY OF SUBSTITUTION BETWEEN THE DOMESTIC VARIETIES epsilon = 7.5000; %(5) ELASTICITY OF SUBSTITUTION BETWEEN THE LABOUR VARIETIES delta = 0.0250; %(6) CAPITAL DEPRECIATION RATE nu_pi = 1.5000; %(7) POLICY RATE RESPONSIVENESS TO INFLATION nu_y = 0.5000; %(8) POLICY RATE RESPONSIVENESS TO OUTPUT DEVIATION FROM THE STEADY STATE lambda = 1.0000; %(9) RELATIVE SIZE OF DOMESTIC POPULATION varsigma_pi = 0.0100; %(10) DOMESTIC INFLATION TREND gamma = 0.6100; %(11) AVERAGE REAL EXCHANGE RATE varsigma_y = 1.5200; %(12) AVERAGE FOREIGN PER CAPITA INCOME RELATIVE TO THE DOMESTIC % omega = 1.5000; %(13) CURVATURE OF THE UTILITY FUNCTION varphi = 3.0000; %(14) ELASTICITY OF LABOUR chi = 0.5000; %(15) STRENGTH OF CONSUMPTION HABITS eta = 1.5000; %(16) ELASTICITY OF SUBSTITUTION BETWEEN DOMESTIC AND FOREIGN GOODS phi_p = 120.0000; %(17) SIZE OF MENU COSTS phi_w = 50.0000; %(18) SIZE OF WAGE BARGAINING COSTS phi_k = 2.0000; %(19) SIZE OF INVESTMENT ADJUSTMENT COSTS zeta_p = -1000.0000; %(20) DEGREE OF MENU COST ASYMMETRY zeta_w = -350.0000; %(21) DEGREE OF WAGE BARGAINIGN COST ASYMMETRY kappa = 0.2300; %(22) CAPITAL SHARE OF INCOME NET OF COMMODITIES xi = 0.2200; %(23) OPENNESS TO TRADE IN COMMODITIES theta = 0.4000; %(24) SHARE OF DISTRIBUTION SERVICES AT HOME theta_star = 0.4000; %(25) SHARE OF DISTRIBUTION SERVICES ABROAD alpha = 0.3000; %(26) DOMESTIC OPENNESS TO TRADE alpha_star = 0.1500; %(27) FOREIGN OPENNESS TO TRADE % rho_r = 0.8100; %(28) PERSISTENCE OF NOMINAL INTEREST RATE rho_a = 0.7680; %(29) PERSISTENCE OF LABOUR PRODUCTIVITY rho_y = 0.8321; %(30) PERSISTENCE OF FOREIGN CONSUMPTION rho_star = 0.8000; %(31) PERSISTENCE OF FOREIGN PREFERENCES sigma_lambda = 0.0032; %(32) STANDARD ERROR OF MONETARY POLICY SHOCKS sigma_a = 0.0057; %(33) STANDARD ERROR OF PRODUCTIVITY SHOCKS sigma_y = 0.0064; %(34) STANDARD ERROR OF FOREIGN CONSUMPTION SHOCKS sigma_star = 0.0135; %(35) STANDARD ERROR OF FOREIGN PREFERENCE SHOCKS %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% PI=1+varsigma_pi; PI_h=PI; PI_tilde=1; PI_W=1; q=gamma; q_dot=1; Q_dot=1; r=1/beta; R=r*PI; % DELTA_P=0; dDELTA_P=0; ddDELTA_P=phi_p; DELTA_K=0; dDELTA_K=0; DELTA_W=0; dDELTA_W=0; TQ=1; x=(1-beta*(1-delta))/beta; LAMBDA=1; A=1; % x0=[1 1]; xis=fsolve(@nl_tot,x0); XI_h=xis(1,1); XI_f_star=xis(1,2); % THETA=XI_h; THETA_star=XI_f_star; s=(1+theta*THETA)/(1-theta); s_star=(1+theta_star*THETA_star)/(1-theta_star); e=(gamma*XI_f_star)/(XI_h); MC=XI_h*((varepsilon-1)/varepsilon); % kappa_M=xi; kappa_K=(1-xi)*kappa; kappa_N=1-kappa_M-kappa_K; % GAMMA_k=(MC/lambda)*(kappa_K/x); GAMMA_m=(MC/lambda)*(kappa_M/q); GAMMA_y=((((GAMMA_k^kappa_K)*(GAMMA_m^kappa_M))*(lambda))^(1/kappa_N)); GAMMA_w=(MC/lambda)*kappa_N*GAMMA_y; GAMMA_nx=(1-theta_star)*alpha_star*((XI_h/q)^(-eta))*varsigma_y-(1-theta)*alpha*(q*XI_f_star)^(-eta); GAMMA_theta=((1-theta)*(1-alpha))*((s/XI_h)^eta); GAMMA_c=(1-GAMMA_nx-delta*GAMMA_k*GAMMA_theta+gamma*GAMMA_m*GAMMA_theta)*(GAMMA_y/GAMMA_theta); % w=GAMMA_w; L=L_ss; N=lambda*L; Y=(GAMMA_y*N)/GAMMA_theta; D=theta*Y; Y_u=(1-theta)*Y; Y_h=GAMMA_theta*Y; K=GAMMA_k*Y_h; M=GAMMA_m*Y_h; I=delta*K; C=GAMMA_c*N; NX=GAMMA_nx*Y-q*M; Y_star=varsigma_y*Y; % psi_ss=((GAMMA_w*(1-chi*beta)*(epsilon-1))/(varphi*epsilon))*L^(1-varphi); % PHI_V=(C*(1-chi)-psi_ss*(L^varphi))^(-omega); UC=PHI_V*(1-chi*beta); UC_star=UC; UL=-psi_ss*varphi*(L^(varphi-1))*PHI_V; PHI_W_2=1; PHI_W_1=-(epsilon/(epsilon-1))*(UL/UC); PHI_P_2=1; PHI_P_1=(varepsilon/(varepsilon-1))*MC; F=Y-w*L-x*K; OMEGA=-(NX)/(1-beta); % PHI_P_3=phi_p*(1+(beta/(PI^2))); % PHI_Delta=PHI_P_3/(varepsilon-1); % erpt=xi/(1+PHI_Delta); erpt_star=1-erpt; erpt_cpi_star=(1-theta_star)*alpha_star*((XI_h/q)^(1-eta))*erpt_star; %% END OF THE MODEL SPECIFIC BLOCK. %% DO NOT CHANGE THIS PART. %% %% Here we define the steady state vZNues of the endogenous variables of %% the model. %% NumberOfEndogenousVariables = M_.orig_endo_nbr; % Number of endogenous variables. ys = zeros(NumberOfEndogenousVariables,1); % Initialization of ys (steady state). for ii = 1:NumberOfEndogenousVariables % Loop... varname = deblank(M_.endo_names(ii,:)); % Get the name of endogenous variable i. eval(['ys(' int2str(ii) ') = ' varname ';']); % Get the steady state vZNue of this variable. end % End of the loop. %%