% Basic RBC model

!transition_variables
h, k, y, i, c , w, R, z; 

!transition_shocks
epsilon;   % white noise disturbance to TFP shock
  
!parameters
alpha = 0.36;
beta  = 0.9891;
delta = 0.025;
psi   = 2.58;
rho   = 0.95;
sigma = 0.35;

% Equations of the model
!transition_equations  
c{1}/c =  beta*(1+R{+1}-delta);                           % euler
psi*c = w;                                                % intratemporal
R = exp(z)*alpha*k{-1}^(alpha-1)*h^(1-alpha);             % mpk
w = exp(z)*(1-alpha)*k{-1}^alpha*h^(-alpha);              % mpl
k = (1-delta)*k{-1} + i;                                  % budget constraint
y =  c + i;                 
y =  exp(z)*k{-1}^(alpha)*h^(1-alpha);                    % production function
z =  rho*z{-1} + epsilon;



