var YH,YF,CH,CF,IS1,IS2,IN1,IN2,KH,KF,LH,LF,LS1,LS2,LN1,LN2,WS,WN,RS,RN,AH,AF;
varexo e1,e2;
parameters alpha,beta,delta,gamma,zhi,rho;
alpha=0.35;
beta=0.97;
delta=0.06;
gamma=0.4;
zhi=5;
rho=0.95;

model;
CH=LS1*(1-alpha)*YH/LH;
CH=LS2*(1-alpha)*YF/LF;
1=beta*((CH/CH(1))*(RS(+1)+(1-delta)));
1=beta*((CH/CH(1))*(RN(+1)+(1-delta)));
YH=AH*(KH(-1)^alpha)*(LH^(1-alpha));
KH=IS1+IN2+(1-delta)*KH(-1);
IS1+IS2=YH-CH;
WS=(1-alpha)*((zhi-1)/zhi)*AH*(KH(-1)^alpha)*(LH^(-alpha));
RS=alpha*((zhi-1)/zhi)*AH*(KH(-1)^(alpha-1))*(LH^(1-alpha));
CF=LN1*(1-alpha)*YF/LF;
CF=LN2*(1-alpha)*YH/LH;
1=beta*((CF/CF(1))*(RN(+1)+(1-delta)));
1=beta*((CF/CF(1))*(RS(+1)+(1-delta)));
YF=AF*(KF(-1)^alpha)*(LF^(1-alpha));
KF=IN1+IS2+(1-delta)*KF(-1);
IN1+IN2=YF-CF;
WN=(1-alpha)*((zhi-1)/zhi)*AF*(KF(-1)^alpha)*(LF^(-alpha));
RN=alpha*((zhi-1)/zhi)*AF*(KF(-1)^(alpha-1))*(LF^(1-alpha));
LH=LS1+LN2;
LF=LN1+LS2;

log(AH)=rho*log(AH(-1))+e1;
log(AF)=rho*log(AF(-1))+e2;
end;

initval;
YH=1;
YF=0.8;
CH=0.8;
CF=0.8;
LS1=0.15;
LS2=0.15;
LN1=0.15;
LN1=0.15;
LH=0.3;
LF=0.3;
KH=3.5;
KF=3.5;
IS1=0.1;
IS2=0.1;
IN1=0.1;
IN2=0.1;
WS=(1-alpha)*YH/LH;
WN=(1-alpha)*YF/LF;
RS=alpha*YH/LH;
RN=alpha*YF/LF;
AH=1;
AF=1;
e1=0;
e2=0;
end;
steady;
check;
shocks;
var e1;stderr 0.01;
end;
stoch_simul;

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