# ################################################################### # (c) Chancellery of the Prime Minister 2012-2015 # # Licence terms can be found in the file: # # http://gecon.r-forge.r-project.org/files/gEcon_licence_models.txt # # # # Author(s): Grzegorz Klima, Karol Podemski, # # Kaja Retkiewicz-Wijtiwiak # # ################################################################### # Time-to-build model # Calibration based on Backus, Kehoe and Kydland (1992): # "International Real Business Cycles", Journal of Political Economy # ################################################################### options { output logfile = TRUE; output LaTeX = TRUE; verbose = TRUE; output LaTeX landscape = TRUE; }; tryreduce { N_d[], X[], lambda_c[], lambda_U[]; }; block CONSUMER { definitions { u[] = (C[]^mu * (L[])^(1 - mu))^gamma / gamma; }; controls { C[], N[], a[], L[]; }; objective { U[] = u[] + beta * E[][U[1]] : lambda_U[]; }; constraints { C[] = pi[] + W[] * N[] : lambda_c[]; L[] = 1 - alpha * N[] - (1 - alpha) * eta * a[-1]; a[] = (1 - eta) * a[-1] + N[]; }; calibration { alpha = 1; eta = 0.5; mu = 0.34; gamma = -1.0; beta = 0.99; }; }; block FIRM { controls { K[], N_d[], Z[], Y[], S[], X[], pi[]; }; objective { PI[] = pi[] + E[][(lambda_U[1] * lambda_c[1] / lambda_c[]) * PI[1]]; }; constraints { Y[] = ((LAMBDA[] * K[-1]^theta * N_d[]^(1 - theta)) ^(-nu) + sigma * Z[-1] ^(-nu)) ^ (-1 / nu); K[] = (1 - delta) * K[-1] + S[-3]; X[] = psi * (S[] + S[-1] + S[-2] + S[-3]); pi[] = Y[] - Z[] + Z[-1] - X[] - W[] * N_d[]; }; calibration { theta = 0.36; nu = 3; sigma = 0.01; delta = 0.025; psi = 0.25; }; }; block EQUILIBRIUM { identities { N_d[] = N[]; }; }; block EXOG { identities { LAMBDA[] - 1 = phi_a * (LAMBDA[-1] - 1) + phi_b * (LAMBDA[-1] - 1) + epsilon_LAMBDA[]; }; shocks { epsilon_LAMBDA[]; }; calibration { phi_a = 0.906; phi_b = 0.088; }; };