var y c k i l z;
varexo e;
parameters beta psi delta alpha rho sigma;
alpha = 0.33;
beta = 0.99;
delta = 0.023;
psi = 1.75;
rho = 0.95;
sigma = 0.002;

model;
(1/c) =beta*(1/c(+1))*(1+(y(+1)*alpha/k)-delta);
psi*c/(1-l) = y*(1-alpha)/l;
c+i = y;
y = exp(z)*(k(-1)^(alpha))*(l^(1-alpha));
i = k -(1-delta)*k(-1);
z = rho*z(-1)+e;
end;



initval;
k = 9;
c = 0.7;
l = 0.3;
e = 0;
end;

steady;

check;

shocks;
var e = sigma^2;
end;

stoch_simul(periods=200,order=1);