var y c k h r z i;

varexo epsilon;

parameters alpha beta delta psi rho  sigma hbar kbar ybar cbar rbar ibar;

// calibration of parameters
load parameterfile;
set_param_value('alpha',alpha)
set_param_value('beta',beta)
set_param_value('psi',psi)
set_param_value('delta',delta)
set_param_value('rho',rho)
set_param_value('sigma',sigma)
 
// steady state values

hbar = .3335;
kbar = 12.6695;
ybar = 1.2353;
cbar = .9186;
rbar = .0351;
ibar = delta*kbar;


model(linear);
c(+1) = c + beta * rbar * r(+1);       // euler
y =  h/(1-hbar) + c;                   // intratemporal
y = k(-1) + r;                         // mpk
ybar*y = cbar*c - kbar*((1-delta)*k(-1) - k); // budget constraint
y = z + alpha*k(-1) + (1-alpha)*h;     // production function
z = rho * z(-1) + epsilon;            // shock process
ybar*y = cbar*c + ibar *i;         // investments 
end;

//initval;
//k = kbar;
//y = ybar;
//c = cbar;
//r = rbar;
//end;

//steady;

//check;

shocks;
var epsilon; stderr sigma;
end;

//stoch_simul(periods= 1000);
stoch_simul(order=1,nocorr,nomoments,IRF=0) y c k z h r i;