var y c k i l y_l w r z ;
varexo e ;
parameters beta psi delta alpha rho epsilon sigma;
model;
(1/c)=beta*(1/c(+1))*(1+r(+1)-delta);
psi*c/(1-l)=w;
c+i=y;
y=(k(-1)^alpha)*(exp(z)*l)^(1-alpha);
w=y*((epsilon-1)/epsilon)*(1-alpha)/l;
r=y*((epsilon-1)/epsilon)*alpha/k(-1);
k=i+(1-delta)*k(-1);
y_l=y/l;
z=rho*z(-1)+e;
end;
varobs y;
initval;
k=9;
c=0.76;
l=0.3;
w=2.07;
r=0.03;
z=0;
e=0;
end;
shocks;
var e; stderr sigma;
end;
estimated_params;
alpha, beta_pdf, 0.35, 0.02;
beta, beta_pdf, 0.99, 0.002;
delta, beta_pdf, 0.025, 0.003;
psi, gamma_pdf, 1.75, 0.1;
rho, beta_pdf, 0.95, 0.05;
epsilon, gamma_pdf, 10, 0.5;
sigma, inv_gamma_pdf, 0.01, inf;
end;
estimation(datafile=simuldata,mh_replic=10000);
stoch_simul(periods=2100);