var lambda a1 a2 a3 a4 k1 k2 k3 k4 i1 i2 i3 i4 c1 c2 c3 c4 l1 l2 l3 l4;
varexo e  e1 e2 e3 e4;
parameters beta delta rho sigma phi AA alpha Le  gamma1 gamma2 gamma3 gamma4 mu1 mu2 mu3 mu4 chi1 chi2 chi3 chi4 b1 b2 b3 b4 tau1 tau2 tau3 tau4;
beta = 0.99;
delta = 0.025;
rho = 0.95;
sigma = 0.001;
phi = 0.5;
alpha = 0.36;
AA = 0.028058361;
tau1 = 1.0604611e-11;
tau2 = 1.8099765e-09;
tau3 = 2.1096359e-08;
tau4 = 2.9305887e-08;
Le = 2.5;
gamma1 = 0.2;
gamma2 = 0.266666666667;
gamma3 = 0.333333333333;
gamma4 = 0.4;
chi1 = 0.75;
chi2 = 0.8;
chi3 = 0.85;
chi4 = 0.9;
mu1 = -0.3;
mu2 = -0.1;
mu3 = 0.1;
mu4 = 0.3;
b1 =  3.6164368;
b2 =  2.5958433;
b3 =  1.9373921;
b4 =  1.4937381;

model;
log(a1) = rho*log(a1(-1))+sigma*(e+e1);
log(a2) = rho*log(a2(-1))+sigma*(e+e2);
log(a3) = rho*log(a3(-1))+sigma*(e+e3);
log(a4) = rho*log(a4(-1))+sigma*(e+e4);
lambda = tau1*c1^(-1/chi1)*(c1^(1-1/chi1)+b1*(Le-l1)^(1-1/chi1))^((1-1/gamma1)/(1-1/chi1)-1);
lambda = tau2*c2^(-1/chi2)*(c2^(1-1/chi2)+b2*(Le-l2)^(1-1/chi2))^((1-1/gamma2)/(1-1/chi2)-1);
lambda = tau3*c3^(-1/chi3)*(c3^(1-1/chi3)+b3*(Le-l3)^(1-1/chi3))^((1-1/gamma3)/(1-1/chi3)-1);
lambda = tau4*c4^(-1/chi4)*(c4^(1-1/chi4)+b4*(Le-l4)^(1-1/chi4))^((1-1/gamma4)/(1-1/chi4)-1);
tau1*(-b1)*(Le-l1)^(-1/chi1)*(c1^(1-1/chi1)+b1*(Le-l1)^(1-1/chi1))^((1-1/gamma1)/(1-1/chi1)-1) = -lambda*a1*AA*(1-alpha)*l1^(mu1-1)*(alpha*k1(-1)^mu1+(1-alpha)*l1^mu1)^(1/mu1-1);
tau2*(-b2)*(Le-l2)^(-1/chi2)*(c2^(1-1/chi2)+b2*(Le-l2)^(1-1/chi2))^((1-1/gamma2)/(1-1/chi2)-1) = -lambda*a2*AA*(1-alpha)*l2^(mu2-1)*(alpha*k2(-1)^mu2+(1-alpha)*l2^mu2)^(1/mu2-1);
tau3*(-b3)*(Le-l3)^(-1/chi3)*(c3^(1-1/chi3)+b3*(Le-l3)^(1-1/chi3))^((1-1/gamma3)/(1-1/chi3)-1) = -lambda*a3*AA*(1-alpha)*l3^(mu3-1)*(alpha*k3(-1)^mu3+(1-alpha)*l3^mu3)^(1/mu3-1);
tau4*(-b4)*(Le-l4)^(-1/chi4)*(c4^(1-1/chi4)+b4*(Le-l4)^(1-1/chi4))^((1-1/gamma4)/(1-1/chi4)-1) = -lambda*a4*AA*(1-alpha)*l4^(mu4-1)*(alpha*k4(-1)^mu4+(1-alpha)*l4^mu4)^(1/mu4-1);
lambda*(1+phi*(i1/k1(-1)-delta)) =beta*lambda(+1)*(1+a1(+1)*AA*alpha*k1^(mu1-1)*(alpha*k1^mu1+(1-alpha)*l1(+1)^mu1)^(1/mu1-1)+phi*(1-delta+i1(+1)/k1-0.5*(i1(+1)/k1-delta))*(i1(+1)/k1-delta));
lambda*(1+phi*(i2/k2(-1)-delta)) =beta*lambda(+1)*(1+a2(+1)*AA*alpha*k2^(mu2-1)*(alpha*k2^mu2+(1-alpha)*l2(+1)^mu2)^(1/mu2-1)+phi*(1-delta+i2(+1)/k2-0.5*(i2(+1)/k2-delta))*(i2(+1)/k2-delta));
lambda*(1+phi*(i3/k3(-1)-delta)) =beta*lambda(+1)*(1+a3(+1)*AA*alpha*k3^(mu3-1)*(alpha*k3^mu3+(1-alpha)*l3(+1)^mu3)^(1/mu3-1)+phi*(1-delta+i3(+1)/k3-0.5*(i3(+1)/k3-delta))*(i3(+1)/k3-delta));
lambda*(1+phi*(i4/k4(-1)-delta)) =beta*lambda(+1)*(1+a4(+1)*AA*alpha*k4^(mu4-1)*(alpha*k4^mu4+(1-alpha)*l4(+1)^mu4)^(1/mu4-1)+phi*(1-delta+i4(+1)/k4-0.5*(i4(+1)/k4-delta))*(i4(+1)/k4-delta));
k1 = i1 + (1-delta)*k1(-1);
k2 = i2 + (1-delta)*k2(-1);
k3 = i3 + (1-delta)*k3(-1);
k4 = i4 + (1-delta)*k4(-1);
c1+i1-delta*k1(-1) + c2+i2-delta*k2(-1) + c3+i3-delta*k3(-1) + c4+i4-delta*k4(-1) = a1*AA*(alpha*k1(-1)^mu1+(1-alpha)*l1^mu1)^(1/mu1)-(phi/2)*k1(-1)*(i1/k1(-1)-delta)^2 + a2*AA*(alpha*k2(-1)^mu2+(1-alpha)*l2^mu2)^(1/mu2)-(phi/2)*k2(-1)*(i2/k2(-1)-delta)^2 + a3*AA*(alpha*k3(-1)^mu3+(1-alpha)*l3^mu3)^(1/mu3)-(phi/2)*k3(-1)*(i3/k3(-1)-delta)^2 + a4*AA*(alpha*k4(-1)^mu4+(1-alpha)*l4^mu4)^(1/mu4)-(phi/2)*k4(-1)*(i4/k4(-1)-delta)^2;
end;
initval;
a1 = 1;
a2 = 1;
a3 = 1;
a4 = 1;
k1 = 1;
k2 = 1;
k3 = 1;
k4 = 1;
c1 = 0.028058361;
c2 = 0.028058361;
c3 = 0.028058361;
c4 = 0.028058361;
i1 =      0.025;
i2 =      0.025;
i3 =      0.025;
i4 =      0.025;
l1 = 1;
l2 = 1;
l3 = 1;
l4 = 1;
lambda = 1;
end;

vcov = [1.0 0 0 0 0; 0 1.0 0 0 0; 0 0 1.0 0 0; 0 0 0 1.0 0; 0 0 0 0 1.0];

order = 4;