// Uses autonomous system from sim_base.mod, but adds separate system where exogenous and endogenous variables have several leads and lags // Lags and leads on variables are substituted out by auxiliary variables var c k z_backward z_forward x_lag_1 x_lag_2 x_lag_3 x_lag_4 x_lead_1 x_lead_2 x_lead_3 x_lead_4 z_backward_lag_1 z_backward_lag_2 z_backward_lag_3 z_forward_lead_1 z_forward_lead_2; varexo x; parameters alph gam delt bet aa; alph=0.5; gam=0.5; delt=0.02; bet=0.05; aa=0.5; model; c + k - aa*x*k(-1)^alph - (1-delt)*k(-1); // Resource constraint c^(-gam) - (1+bet)^(-1)*(aa*alph*x(+1)*k^(alph-1) + 1 - delt)*c(+1)^(-gam); // Euler equation z_backward=0.4*0.5+0.2*z_backward_lag_1+0.2*z_backward_lag_2+0.2*z_backward_lag_3 + (x_lag_4-1); z_forward=0.1*1+0.45*z_forward_lead_1+0.45*z_forward_lead_2+(x_lead_4-1); z_backward_lag_1=z_backward(-1); z_backward_lag_2=z_backward_lag_1(-1); z_backward_lag_3=z_backward_lag_2(-1); z_forward_lead_1=z_forward(+1); z_forward_lead_2=z_forward_lead_1(+1); x_lag_1=x(-1); x_lag_2=x_lag_1(-1); x_lag_3=x_lag_2(-1); x_lag_4=x_lag_3(-1); x_lead_1=x(+1); x_lead_2=x_lead_1(+1); x_lead_3=x_lead_2(+1); x_lead_4=x_lead_3(+1); end; initval; c = 1.2; k = 12; x = 1; %set x(0) x_lag_1 = 1.3; %sets x(-1) x_lag_2 = 1.3; %sets x(-2) z_backward=0.5; z_backward_lag_1=0.4; z_backward_lag_2=0.9; end; shocks; var x; %sets x(+2) periods 2; values 0.9; end; perfect_foresight_setup(periods=200); perfect_foresight_solver(maxit=100); if ~oo_.deterministic_simulation.status error('Perfect foresight simulation failed') end base_results=load(['sim_base' filesep 'Output' filesep 'sim_base_results.mat']); if max(abs(base_results.oo_.endo_simul(strmatch('c',base_results.M_.endo_names,'exact'),1+base_results.M_.maximum_endo_lag:end-base_results.M_.maximum_endo_lead) -... oo_.endo_simul(strmatch('c',M_.endo_names,'exact'),1+M_.maximum_endo_lag:end-M_.maximum_endo_lead)))>1e-8 || ... max(abs(base_results.oo_.endo_simul(strmatch('k',base_results.M_.endo_names,'exact'),1+base_results.M_.maximum_endo_lag:end-base_results.M_.maximum_endo_lead) -... oo_.endo_simul(strmatch('k',M_.endo_names,'exact'),1+M_.maximum_endo_lag:end-M_.maximum_endo_lead)))>1e-8 error('Autonomous system part is wrong') end