function [ys, info] = rbcii_steadystate(ys, exogenous) % Steady state routine for rbc.mod (Business Cycle model with endogenous labour and CES production function) % AUTHOR(S) % stephane DOT adjemian AT univ DASH lemans DOT fr % frederic DOT karame AT univ DASH evry DOT fr % Output_per_unit_of_Capital = (((1/beta)-1+delta)/alpha)^(1/(1-psi)); % Consumption_per_unit_of_Capital = Output_per_unit_of_Capital - delta; % Labour_per_unit_of_Capital = (((Output_per_unit_of_Capital/effstar)^psi-alpha)/(1-alpha))^(1/psi); % Output_per_unit_of_Labour = Output_per_unit_of_Capital/Labour_per_unit_of_Capital; % Consumption_per_unit_of_Labour = Consumption_per_unit_of_Capital/Labour_per_unit_of_Capital; % SteadyStateLabour = 1/(1 + Consumption_per_unit_of_Labour/((theta*(1-alpha)/(1-theta))*(Output_per_unit_of_Labour^(1-psi)))); % SteadyStateConsumption = Consumption_per_unit_of_Labour*SteadyStateLabour; % SteadyStateCapital = SteadyStateLabour/Labour_per_unit_of_Capital; % SteadyStateOutput = Output_per_unit_of_Capital*SteadyStateCapital; % ShareOfCapital = alpha/(alpha+(1-alpha)*Labour_per_unit_of_Capital^psi); global M_ info = 0; % Compute steady state ratios. Output_per_unit_of_Capital=((1/M_.params(1)-1+M_.params(6))/M_.params(4))^(1/(1-M_.params(5))); Consumption_per_unit_of_Capital=Output_per_unit_of_Capital-M_.params(6); Labour_per_unit_of_Capital=(((Output_per_unit_of_Capital/M_.params(8))^M_.params(5)-M_.params(4))/(1-M_.params(4)))^(1/M_.params(5)); Output_per_unit_of_Labour=Output_per_unit_of_Capital/Labour_per_unit_of_Capital; Consumption_per_unit_of_Labour=Consumption_per_unit_of_Capital/Labour_per_unit_of_Capital; % Compute steady state share of capital. ShareOfCapital=M_.params(4)/(M_.params(4)+(1-M_.params(4))*Labour_per_unit_of_Capital^M_.params(5)); % Compute steady state of the endogenous variables. SteadyStateLabour=1/(1+Consumption_per_unit_of_Labour/((1-M_.params(4))*M_.params(2)/(1-M_.params(2))*Output_per_unit_of_Labour^(1-M_.params(5)))); SteadyStateConsumption=Consumption_per_unit_of_Labour*SteadyStateLabour; SteadyStateCapital=SteadyStateLabour/Labour_per_unit_of_Capital; SteadyStateOutput=Output_per_unit_of_Capital*SteadyStateCapital; % Fill returned argument ys with steady state values. ys = zeros(9,1); ys(1)=SteadyStateCapital; ys(2)=SteadyStateOutput; ys(3)=SteadyStateLabour; ys(4)=SteadyStateConsumption; ys(5)=M_.params(8); ys(7)=M_.params(1)*((((SteadyStateConsumption^M_.params(2))*((1-SteadyStateLabour)^(1-M_.params(2))))^(1-M_.params(3)))/SteadyStateConsumption)* ... (M_.params(4)*((SteadyStateOutput/SteadyStateCapital)^(1-M_.params(5)))+1-M_.params(6));