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
c = y - h/(1-hbar);                                 // intratemporal
r = y - k(-1);                                      // mpk
k = ybar/kbar*y - cbar/kbar*c + (1-delta)*k(-1);    // 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;

//steady;

//check;

shocks;
var epsilon; stderr sigma;
end;


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