var  y c n w m dp r z;
varexo ez;
parameters beta sigma nu eps  chi alpha  phi_dp rho_z;
beta=0.97;sigma=1;nu=1;eps=3;phi_dp=1.5;rho_z=0.9;
alpha=2/3;
chi=0.05;

model;
beta*c^sigma*r*dp(+1)=(c(+1))^sigma;
w=n^nu*c^sigma;
chi*m^(-eps)*c^sigma=(r-1)/r;
w=alpha*z*n^(alpha-1);
y=c;
y=z*n^alpha;
log(r)=phi_dp*log(dp);
log(z)=rho_z*log(z(-1))+ez;
end;

initval;
c=1;
n=1;
y=1;
z=1;
r=1;
dp=1;
m=1;
end;

steady;
check;

shocks;
var ez;stderr 0.1;
end;

stoch_simul;