# ############################################################################ # (c) Chancellery of the Prime Minister 2012-2015 # # # # Authors: Grzegorz Klima, Karol Podemski, Kaja Retkiewicz-Wijtiwiak # # ############################################################################ # RBC model with monopolistic competition # ############################################################################ options { output logfile = TRUE; output LaTeX = TRUE; output LaTeX landscape = TRUE; }; tryreduce { L_d[], P_FIN[], Y_MON[], Y_FIN[], lambda_U[], lambda_c[]; }; block CONSUMER { definitions { u[] = (C[]^mu * (1 - L_s[])^(1 - mu))^(1 - eta) / (1 - eta); }; controls { C[], L_s[]; }; objective { U[] = u[] + beta * E[][U[1]] : lambda_U[]; }; constraints { P_FIN[] * C[] = pi[] + pi_ps[] + W[] * L_s[] : lambda_c[]; }; calibration { beta = 0.99; eta = 2; mu = 0.3; }; }; block INTERMEDIATE_FIRM { controls { K[], L_d[], Y[], I[], pi[]; }; objective { PI[] = pi[] + E[][lambda_U[1] * lambda_c[1] / lambda_c[] * PI[1]]; }; constraints { pi[] = P[] * Y[] - L_d[] * W[] - I[]; Y[] = K[-1]^alpha * (Z[] * L_d[])^(1 - alpha); K[] = (1 - delta) * K[-1] + I[]; }; calibration { alpha = 0.33; delta = 0.025; }; }; block PRICE_SETTING { controls { pi_ps[], Y_MON[], P_MON[]; }; objective { PI_PS[] = pi_ps[]; }; constraints { pi_ps[] = (P_MON[] - P[]) * Y_MON[]; Y_MON[] = Y_FIN[] * (P_MON[] / P_FIN[])^(-rho); }; calibration { rho = 11; }; }; block FINAL_FIRM { identities { Y_FIN[] = Y_MON[]; }; }; block EQUILIBRIUM { identities { L_d[] = L_s[]; P_FIN[] = 1; Y_MON[] = Y[]; }; }; block EXOG { identities { Z[] = exp(phi * log(Z[-1]) + epsilon_Z[]); }; shocks { epsilon_Z[]; }; calibration { phi = 0.95; }; };