# ############################################################################ # (c) Chancellery of the Prime Minister 2012-2015 # # # # Author(s): Anna SowiƄska # # ############################################################################ # Basic RBC model with two sectors (consumption and investment goods) # ############################################################################ options { output logfile = TRUE; output LaTeX = TRUE; output LaTeX landscape = TRUE; }; tryreduce { pi_C[], pi_I[], C_s[], K_I_d[], L_I_d[]; }; block CONSUMER { definitions { u[] = (C[]^mu * (1 - L_s[])^(1 - mu))^(1 - eta) / (1 - eta); }; controls { K_s[], C[], L_s[], I[]; }; objective { U[] = u[] + beta * E[][U[1]]; }; constraints { p[] * I[] + C[] = pi_I[] + pi_C[] + r[] * K_s[-1] + W[] * L_s[]; K_s[] = (1 - delta) * K_s[-1] + I[]; }; identities { Y[] = C[] + p[] * I[]; }; calibration { delta = 0.025; beta = 0.99; eta = 2; mu = 0.3; }; }; block FIRM_C { controls { K_C_d[], L_C_d[], C_s[]; }; objective { pi_C[] = C_s[] - L_C_d[] * W[] - r[] * K_C_d[]; }; constraints { C_s[] = Z[] * K_C_d[]^alpha * L_C_d[]^(1 - alpha); }; calibration { alpha = 0.2; }; }; block FIRM_I { controls { K_I_d[], L_I_d[], I_s[]; }; objective { pi_I[] = I_s[] - L_I_d[] * W[] - r[] * K_I_d[]; }; constraints { I_s[] = Z[] * K_I_d[]^sigma * L_I_d[]^(1 - alpha); }; calibration { sigma = 0.4; }; }; block EQUILIBRIUM { identities { K_C_d[] + K_I_d[] = K_s[-1]; L_C_d[] + L_I_d[] = L_s[]; C[] = C_s[]; }; }; block EXOG { identities { Z[] = exp(phi * log(Z[-1]) + epsilon_Z[]); }; shocks { epsilon_Z[]; }; calibration { phi = 0.95; }; };