// variables
var a, c, i, k, kprev, lambdak;    
 
// innovations to shock processes
varexo erra;


// parameters
parameters ALPHA, DELTAK, BETA, GAMMAC, RHOA, PHII, PHIK, PSI, PSINEG, ISS, KSS ;

model;

# zkss = ((1/BETA-1+DELTAK)/ALPHA)^(1/(ALPHA-1));
# zcss = -DELTAK*zkss + zkss^ALPHA;
# ziss = DELTAK*zkss;
# zuss = (zcss^(1-GAMMAC)-1)/(1-GAMMAC);
# zvss = zuss/(1-BETA);

/////////////////////////////////////////////////////////////////
// 1.
-exp(c)^(-GAMMAC)*(1+2*PSI*(exp(k)/exp(k(-1))-1)/exp(k(-1)))
+ BETA*exp(c(1))^(-GAMMAC)*((1-DELTAK)-2*PSI*(exp(k(1))/exp(k)-1)*
  (-exp(k(1))/exp(k)^2)+ALPHA*exp(a(1))*exp(k)^(ALPHA-1))= 
  -lambdak+BETA*(1-DELTAK+PHIK)*lambdak(1);

// 2.
exp(c)+exp(k)-(1-DELTAK)*exp(k(-1))+
PSI*(exp(k)/exp(k(-1))-1)^2=exp(a)*exp(k(-1))^(ALPHA);

// 3.
exp(i) = exp(k)-(1-DELTAK)*exp(k(-1));

// 4.
lambdak = 0;

// 5. 
a = RHOA*a(-1)+erra;


kprev=k(-1);


end;



shocks;
  var erra; stderr 0.015;
end;


steady;


stoch_simul(order=1,nocorr,nomoments,irf=0,print);